The draft law aims to standardize the format of invoices, requiring all companies to issue structured electronic invoices starting from January 1, 2026. Companies registered in Latvia must issue electronic invoices to budget institutions from January 1, 2025, ahead of the general implementation deadline, to ensure consistency and transparency in accounting across different sectors.
Source
- SNI
- Draft law
- Amendments to Accounting Law: The proposed amendments mandate that from January 1, 2026, all companies must issue invoices as structured electronic invoices for payments related to goods or services.
- Implementation Timeline: Starting January 1, 2025, companies must issue structured electronic invoices to budgetary institutions to enhance public sector efficiency and support the establishment of a Unified Services Centre in public administration.
- Purpose and Benefits: The amendments aim to automate and digitize accounting processes, ensuring faster invoice processing and payments, and creating a centralized system for electronic invoice circulation.
- Public Consultation: A public consultation was held from May 24, 2024, to June 7, 2024, to gather feedback from representatives of the public, including companies, on the proposed changes.
- Objections and Proposals: The Latvian Taxpayers’ Rights Association requested clarification on terms related to foreign companies and the definition of services received in Latvia, highlighting potential ambiguities in the draft law.
- Amendment to the law
- Definition Update: The amendments redefine a structured electronic invoice as one complying with EU standard LVS EN 16931-1:2017, facilitating automatic electronic processing.
- Budgetary Authority Clarification: The definition of budgetary authorities in Article 1 is revised to specify the officials responsible for administrative management.
- New Invoicing Requirements: Section 11 is expanded to mandate that invoices between companies in Latvia be issued as structured electronic invoices, with exceptions for certain types of transactions and institutions.
- Implementation Timeline: The requirement for structured electronic invoices applies from January 1, 2026, for non-budgetary authorities. Transactions completed by December 31, 2024, must comply by January 1, 2026.
- Cabinet Regulations: The Cabinet must establish procedures for the circulation of structured electronic invoices by July 1, 2025. The law takes effect on January 1, 2025.
- Annotation
- Rationale and Objective: The amendments to the Accounting Law stem from Cabinet Orders and reports aimed at establishing a Single Service Centre in State Administration and mandating the use of structured electronic invoices (e-invoices) from January 1, 2025, to improve public sector efficiency and digitize accounting processes.
- Implementation Timeline: Mandatory e-invoicing for transactions with budgetary institutions starts on January 1, 2025. By January 1, 2026, this requirement will extend to all companies for transactions within Latvia, ensuring comprehensive adoption of e-invoices.
- Current Situation: Currently, the use of e-invoices is not mandatory, and businesses can choose between paper and electronic formats. The new amendments will enforce the use of structured e-invoices, aiming to address inefficiencies in the current decentralized approach.
- Expected Benefits: The implementation of e-invoices is expected to automate and expedite invoice processing, reduce administrative burdens, and enhance the digitization of accounting processes. This will also promote the efficient execution of public sector functions and support the establishment of the Unified Services Centre.
- Public Consultation and Feedback: A public consultation was held to gather feedback from stakeholders. The Latvian Taxpayers’ Rights Association requested clarification on terms related to foreign companies and their transactions within Latvia, ensuring the amendments are clear and applicable to all relevant entities.
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See also
- E-Invoicing/Real Time Reporting – What can you find on VATupdate.com
- Worldwide Upcoming E-Invoicing mandates, implementations and changes – Chronological
- Collection of E-Invoicing Guides – Worldwide – VATupdate
- Join the Linkedin Group on Global E-Invoicing/E-Reporting/SAF-T Developments, click HERE
