E-Invoicing in Latvia: What's Changing and How Businesses Can Prepare
- Melasoft
- 2 days ago
- 4 min read
A Clear Guide to the Upcoming Mandates and Melasoft’s Role in Compliance
Overview
Latvia is moving forward with one of the most significant digital transformations in its financial administration. With new regulations coming into effect starting from January 2025, the country will require the use of structured electronic invoices for all public sector transactions. By January 2026, the same requirement will apply to business-to-business (B2B) transactions. This shift represents a national effort to reduce VAT fraud, increase transparency, and streamline invoice processing.
Businesses operating in Latvia or working with Latvian entities must understand the timeline, technical requirements, and how to ensure compliance. In this article, we also introduce how Melasoft helps organizations successfully adapt to Latvia’s e-invoicing transition.
Key Dates and Legal Background
The Latvian Parliament passed amendments to the Accounting Law (24-TA-438), introducing mandatory e-invoicing through a two-phase rollout:
January 1, 2025 — Mandatory e-invoicing begins for transactions involving public administration. This includes Government-to-Government (G2G), Business-to-Government (B2G), and Government-to-Business (G2B) transactions.
January 1, 2026 — Mandatory e-invoicing extends to B2B transactions for all businesses registered for VAT in Latvia. Companies will also be required to report invoice data to the State Revenue Service (SRS).
A structured electronic invoice is defined as one that is issued, sent, and received in a format allowing for full automation and digital processing.
Technical Requirements
Businesses must comply with the following standards and channels:
Invoice Format: XML format based on the PEPPOL BIS Billing 3.0 specification, aligned with the European EN 16931 standard.
Delivery Methods:: Through the PEPPOL network using certified access points
Via Latvia’s national e-government platform or local municipality portals
Through direct transmission between trading partners, if mutually agreed
Real-time Data Reporting: Beginning in 2026, invoice data must be transmitted to Latvia’s State Revenue Service (VID/SRS) using a centralized reporting platform. The technical guidelines for this platform are expected to be published by May 2025.
Impact on Local and International Businesses
Businesses in Latvia and companies abroad working with Latvian entities should assess how these requirements will affect their current invoicing processes.
Companies issuing invoices to Latvian government institutions must switch to electronic formats by 2025.
All B2B invoices issued within Latvia will need to follow the new standards by 2026.
Foreign companies, including those in Lithuania, Estonia, and Poland, may be required to issue e-invoices if their Latvian partners demand structured data for processing.
Businesses not ready for this transition may face delays, compliance issues, or lose contracts with Latvian entities.
How Melasoft Can Help
Melasoft is a certified PEPPOL Access Point provider, authorized to facilitate secure and compliant e-invoice exchanges across the PEPPOL network. We offer a comprehensive, scalable e-invoicing solution specifically aligned with Latvia’s upcoming mandates and broader EU digital compliance frameworks.
Why Choose Melasoft?
Official PEPPOL Service Provider: Melasoft is an accredited provider on the PEPPOL network, ensuring full interoperability with Latvian public sector systems and international partners.
SAP E-Invoicing Expertise Across 35+ Countries: With deep integration experience, Melasoft delivers SAP-compatible e-invoicing solutions across more than 35 countries, supporting country-specific formats, VAT rules, and regulatory workflows.
End-to-End Compliance: Structured invoice creation, validation, dispatch, archiving, and reporting — all automated and auditable.
PEPPOL and EN 16931 Format Support: Full compatibility with XML formats based on PEPPOL BIS Billing 3.0 and European e-invoicing standards.
ERP System Integration: Seamlessly connects to platforms such as SAP, Oracle, Odoo, and Microsoft Dynamics, without disrupting your existing workflow.
Localized & Scalable: Whether you’re a small business or a multinational enterprise, Melasoft provides tailored solutions with multilingual support.
By partnering with Melasoft, businesses can confidently meet Latvia’s regulatory requirements and position themselves for long-term digital success in both local and international markets.
Frequently Asked Questions (FAQ)
What is the timeline for Latvia’s e-invoicing mandate?
Latvia will introduce mandatory electronic invoicing in two phases:
January 1, 2025 for B2G and public sector transactions
January 1, 2026 for B2B transactions among VAT-registered businesses.
2. What is a structured electronic invoice?
It is an invoice created in a machine-readable format such as XML, following a standardized structure that allows for automated processing. Latvia requires invoices to follow the PEPPOL BIS Billing 3.0 standard.
3. Which types of businesses are subject to the mandate?
All businesses sending invoices to Latvian government institutions starting in 2025, and all Latvian VAT-registered businesses issuing B2B invoices starting in 2026.
4. Can I still send PDF invoices?
No. PDF invoices will not be considered valid under the new e-invoicing regulations. Only structured, machine-readable invoices in the required XML format will be accepted.
5. What if I operate outside Latvia but trade with Latvian companies?
You may be asked to issue e-invoices if your Latvian partner prefers or requires structured invoice data. Early adoption of a compliant solution will help you maintain smooth operations and business relationships.
6. Will the government provide a platform?
Yes, the Latvian government is expected to offer a free national platform, but companies can also choose to work with authorized providers like Melasoft, which offer broader capabilities, integrations, and automation.
7. How do I get started?
Review your invoicing system and identify gaps
Select a compliant, certified provider
Train your finance or IT teams
Stay informed as regulations are finalized in May 2025
Final Thoughts
Latvia’s e-invoicing mandate reflects a broader European shift toward transparency, automation, and digital VAT reporting. These changes will impact businesses both inside and outside the country — and preparation is key.
Melasoft provides a robust, future-ready e-invoicing solution that helps you stay compliant, integrated, and efficient in the face of changing regulations. Whether you operate in Latvia, Lithuania, or across Europe, we are here to support your transformation.
To learn more or request a demo, contact Melasoft today.
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