The bill has been given urgency.
The amendments will determine the legal framework for the justification document or invoice, which is issued to the recipient of goods or services for payment. It is expected that from January 1, 2026, all companies registered in Latvia will be required to issue the justification document issued for payment of goods or services as a structured electronic invoice (e-invoice).
In addition, the transition rules provide that from January 1, 2025, a company registered in Latvia will issue an invoice to a budget institution as an e-invoice. Such a solution is envisaged in the draft law in order to facilitate the efficient performance of public sector functions and to ensure possible automation of functions. This would simultaneously streamline the digitalization of accounting processes, including in connection with the establishment of the Unified Service Center in the state administration.
In order to determine the procedures for e-invoice circulation, including technical data exchange paths, delivery and receipt methods, necessary adjustments to the e-address and other technical aspects of e-invoice circulation, the law will give a delegation to the Cabinet of Ministers (MK) until July 1, 2025 to issue the rules that will determine the e-invoice circulation procedure.
The regulations of the MoC will include that in the B2B (“Business to Business”) segment of taxpayers, a solution for decentralized e-invoice circulation using three electronic sending methods will be introduced to ensure mandatory domestic e-invoice circulation. These include the free national delivery solution (e-mail address), PEPPOL (“Pan-European Public Procurement On-Line”) service providers or operators (paid service), as well as in an individual way between taxpayers, that is, when the invoicer and the recipient agree on circulation channel, such as through e-mail or direct software integration interfaces.
In order for taxpayers from January 1, 2026 to be able to fulfill the requirement for the mandatory circulation of domestic e-invoices and the transfer of e-invoice data to the State Revenue Service (SRS), free data transmission channels – e-address or Electronic Declaration Systems (EDS) will be provided ) API (“Application Programming Interface”) solution or manually by uploading the e-invoice file to the EDS interface.