Hatice Ozcan
Nov 20, 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.