Regulatory updates - Latvia

• A new language requirement for items subject to the 5% reduced VAT rate (e.g., books, booklets, subscription fees for press and other mass media publications). These must be issued in the official language, written Latgalian, Livonian, the official languages of EU/EEA member states, the Swiss Confederation, EU candidate countries, or official OECD languages.
• A temporarily reduced VAT rate of 12% will apply to specific food products listed in Annex 2 of the VAT Law, including bread, milk, poultry meat, and eggs. This temporary reduction will be in effect from July 1, 2026, to June 30, 2027.
• The Annex of the VAT Law will be updated to Annexes 1 and 2.

The amendments to the VAT Law enter into force on January 1, 2026.

On December 12, 2025, Latvia published a Cabinet Regulation outlining the procedure for organizing and implementing the circulation of structured electronic invoices and submitting structured electronic invoice data to the State Revenue Service (SRS). The regulation specifies delivery channels, technical requirements, and reporting timelines.

E-invoice distribution channels

The regulation provides the following options to exchange e-invoices:

• Official e-address system, e-adrese (provided an account has been activated);
• Service providers (SP); or
• Other delivery channels, such as EDI and email.

The XML format must comply with UBL 2.1 and Peppol BIS Billing 3.0 specification (Core Invoice Usage Specification).

E-invoice reporting to SRS

For SRS submission, companies can use:

• Official electronic address (e-adrese). When using the e-address the system automatically submits the e-invoice information to the SRS;

• Service provider API integration (required if the e-invoice is distributed via a SP), or

• The Electronic Declaration System (EDS) via API integration or file upload functionality (required for other delivery channels, such as EDI and email).

Reporting timeline and additional provisions

Companies must submit their e-invoices to the SRS within five working days after sending them to recipients.

The regulation also sets contingency rules for system disruptions: companies and SPs must notify the SRS via the EDS, and specific deadlines apply depending on whether the delay is caused by the operator's systems, an SRS-announced malfunction, or other reasons.

Timelines

As previously reported, the timelines are:

• January 1, 2026: mandatory e-invoicing, including e-reporting to the SRS for B2G, G2G, and G2B transactions. Private companies exchanging e-invoices may voluntarily start e-reporting to the SRS for B2B transactions.
• January 1, 2028: mandatory B2B e-invoicing and reporting of e-invoices to the SRS.

More details are listed on the SRS website.

Following the recent Amendments to the Accounting Law and the upcoming e-invoice obligations in the country, a Draft Cabinet Regulation titled "Procedure for organizing and implementing the circulation of structured electronic invoices and submitting structured electronic invoice data to the State Revenue Service" is open for public consultation between June 9 and June 23, 2025. The draft regulation outlines the high-level requirements, such as:

E-invoice exchange

Trading parties may agree on one or more methods for exchanging e-invoices, choosing from:

• National e-address (e-adrese);
• Service providers;
• Other delivery channels, such as EDI or email

E-invoice reporting

E-invoice data should be reported to the SRS no later than five working days after the e-invoice has been sent to the buyer using one of the following channels:

• National e-address (e-adrese);
• Integrated solution via service provider;
• User interface or manual upload via the SRS Electronic Declaration system.

Businesses should use the same channel for both e-invoice distribution and reporting to the SRS. If e-invoices are delivered by “other channels,” the data should be submitted via the SRS Electronic Declaration System.

E-reporting format requirements

E-invoice data should be reported as structured XML files in UBL 2.1 or Peppol BIS Billing 3.0 format, compliant with the EU standard LVS EN 16931-1:2017, LVS CEN/TS 16931-2:2017.

Timelines

• January 1, 2026: mandatory use of e-invoices and reporting of e-invoice data to the SRS for B2G, G2G, and G2B transactions;
• January 1, 2026: Private businesses may voluntarily submit e-invoice data to the SRS from January 1, 2026, using an integrated solution;
• January 1, 2028: mandatory use of e-invoices and reporting of e-invoice data to the SRS for B2B transactions.

How to participate in the consultation

Businesses willing to take part can access the consultation on the State Chancellery’s (Valsts Kanceleja) website.