Latvia, 20 November 2024
Latvia Adopts Mandatory E-Invoicing with Phased Implementation
Latvia has officially mandated electronic invoicing (e-invoicing) through amendments to the Accounting Law, published in the State Gazette on 12 November 2024. These amendments establish a phased approach to implementing mandatory e-invoicing for businesses:
Phase 1: Starting 1 January 2025, all companies must issue e-invoices for transactions with budgetary entities, covering both Business-to-Government (B2G) and Government-to-Government (G2G) transactions.
Phase 2: By 1 January 2026, the mandate will expand to include all Business-to-Business (B2B) transactions. This will utilize a decentralized Continuous Transaction Controls (CTC) model for invoice exchange.
The parliament (Saeima) approved these amendments on 31 October 2024, and they align with the government’s 2024-2027 strategy to combat the shadow economy. The amendments empower the Cabinet of Ministers to issue detailed regulations for e-invoicing by 1 May 2025.
This initiative aims to enhance transparency, improve efficiency in financial operations, and align Latvia with European e-invoicing standards.