Source Link to the Law
The “Grāmatvedības likums” (Accounting Law) includes several provisions regarding electronic invoicing and reporting:
- Structured Electronic Invoices: The law defines a “strukturēts elektroniskais rēķins” (structured electronic invoice) as an invoice that is prepared, sent, and received in a structured electronic format that allows for automatic and electronic processing. It must comply with the European Union standard LVS EN 16931-1:2017 regarding the semantic data model for core elements of electronic invoices, and be issued according to the technical specification LVS CEN/TS 16931-2:2017.
- Mandatory E-Invoicing: As of January 1, 2026, the law stipulates that invoices issued by one Latvian company to another (excluding budget institutions) must be structured electronic invoices.
- Exceptions: There are exceptions to the e-invoicing mandate:
- Transactions where payment is confirmed via a document compliant with regulations governing the use of electronic devices for registering taxes and other payments.
- Transactions where payment is confirmed by an invoice generated in the National Health Service’s Management Information System or the State Employment Agency’s information system for unemployed individuals and registered vacancies.
- State security institutions, the financially independent structural unit of the State Police, the Tax and Customs Police, and the Corruption Prevention and Combating Bureau are also exempt regarding documents prepared in their electronic system. Until the law on the Tax and Customs Police comes into effect, the rights granted to the Tax and Customs Police apply to the Tax and Customs Police Department of the State Revenue Service.
- Submission of E-Invoice Data: The Cabinet of Ministers will determine the procedure for the circulation of structured electronic invoices and the submission of structured electronic invoice data to the State Revenue Service (Valsts ieņēmumu dienests). Data submission is scheduled to begin on January 1, 2026.
- Electronic Confirmation: For internal attaisnojuma dokumenti (supporting documents) prepared in electronic form, the “paraksts” (signature) requirement can be replaced with an electronic confirmation.
- Electronic Archiving: The law allows businesses to convert paper accounting documents into electronic format for storage. These electronic copies have the same legal validity as the originals, provided certain conditions are met, including ensuring content representation, readability, protection against alteration, and proper documentation of the conversion and destruction processes.
The “Grāmatvedības likums” addresses electronic reporting (E-reporting) of data to the tax authorities, specifically mentioning the submission of structured electronic invoice data to the State Revenue Service.
- Submission of E-Invoice Data: The law mandates that the Cabinet of Ministers will define the procedure for submitting structured electronic invoice data to the State Revenue Service (Valsts ieņēmumu dienests). This process is scheduled to commence on January 1, 2026.
- Tax Declarations as Supporting Documents: The law allows for the use of tax declarations as supporting documents to record calculated tax. It also allows the tax administration and state duty administration to use documents issued by them as supporting documents, even if they lack some of the standard details required on supporting documents. Furthermore, these administrations can make entries in accounting records based on calculations from state information systems.
Source Link to the Law
See also
- See also
- Join the Linkedin Group on Global E-Invoicing/E-Reporting/SAF-T Developments, click HERE
