WHY THE DELAY?
The current law requires that starting in 2026, all businesses and self-employed individuals issuing invoices to other companies in Latvia must use the structured e-invoice format. However, a recent assessment revealed that many businesses, especially small and medium, are not technologically prepared for this change.
The Ministry of Environmental Protection and Regional Development (VARAM) highlighted in a recent report that the 2024 legislation introducing this obligation came too close to its original enforcement date. As a result, affected businesses lacked the necessary time to implement systems capable of processing these invoices.
A MATTER OF READINESS
It has been noted that about half of the businesses still lack the skills or equipment needed for e-invoicing. This has become evident in the rapid rise in e-invoice volumes: from 10,000 in early 2024 to over 276,000 by mid-year - with forecasts estimating as many as 5 million by 2026.
This surge points to the need for scalable and robust infrastructure - something not yet in place.
WHAT'S NEXT?
On 5 June, the Latvian Saeima adopted the amendments in the final reading under urgent procedure. These amendments formally establish 1 January 2028 as the new mandatory start date for structured e-invoicing between all registered Latvian companies.
The delay is designed to give businesses - particularly micro-enterprises, self-employed individuals, and NGOs - sufficient time to prepare both technologically and organizationally.
From the second quarter of 2025, companies will be able to voluntarily test the new e-invoice system. This will allow for a smoother transition and provide valuable feedback to the authorities on how to fine-tune the system.
WHAT REMAINS IN PLACE?
E-invoicing will still be mandatory in transactions involving public institutions, as it has been since 1 January 2025 - this includes Government-to-Government (G2G), Business-to-Government (B2G), and Government-to-Business (G2B) interactions.
Author: Lonija Grīnfelde, Marketing Specialist
