e-Invoicing in Latvia [2024 Requirements]

Latvia is on the Road to E‑invoicing

The first Latvian e-invoicing initiative (eInvoices Connecting Europe Facility (CEF) Project Latvia) was implemented from February 2019 to March 2020. It achieved the objective of developing an e-invoicing solution for Latvia's compliance with EU Directive 2014/55/EU. The e-invoicing solution was based on the existing Latvian national Secure Electronic Delivery Platform (eAddress). eAddress is an environment for electronic communication and handling of documents for secure and reliable use between public entities and private individuals and its use by the public administration in Latvia is mandated by law. The public contracting authorities can receive eInvoice through e-mail, using service provider solutions sold on the market, or through the developed central platform eAddress.

Through authentication on www.latvija.gov.lv portal, citizens and entrepreneurs can access their eAddress mailbox. In the case of an eAddress, the users will need an eID card, eParaksts, or eParaksts Mobile (a mobile app to be identified without an eID card but just as securely) to prove identities.

E-invoicing process description

Connecting Europe Facility (CEF) Project

The completion of the CEF Project has enabled the development and deployment of the following components of the e-invoicing solution:

E-invoicing integration in eAddress allowing for the secure transmission of e-invoices
E-invoicing section in www.latvija.gov.lv for preparation (manual completion of an online form), display, submission (file upload in XML syntax), and receipt of e-invoices in eAddress
Public e-invoicing API library to ensure eInvoice transmission between different accounting systems. This will be demonstrated through the implementation of the public e-invoicing API library within the ERP solution – Tildes Jumis
Connection with the PEPPOL network to set up interoperability and connectivity between Latvia and other EU Member States. The Action used an existing PEPPOL Access Point AS4 profile provided by a PEPPOL service provider to set up the PEPPOL gateway

B2G e-invoicing has been mandatory for central and sub-central/local authorities for all contracting authorities since April 2020.

Who is obliged to use e-invoicing

Centralized government integration platform

In Latvia, a centralized government integration platform (ePakalpojumi.lv) is operated by the State Regional Development Agency under the supervision of the Ministry of Regional Development and Environment Protection, which acts as the main government body for information technology matters.

When providing goods and services to municipalities, economic operators can submit e-invoices through individual municipality websites via the municipality portal.

The authorization and submission processes are the same whether one uses the central government platform or the websites of municipalities.

In the first half of 2024, the Latvian Ministry of Finance proposed amendments to the Accounting Law aiming at introducing a national e-invoicing mandate.

The prospective amendments can be accessed here.

E-Invoicing Implementation timeline

Implementation timeline

On September 24, 2024, the Latvian Ministry of Finance announced commitment to introducing e-invoicing mandates in both B2G and B2G relations.

The draft regulation recommended the following deadlines for the mandates:

April 1st, 2020 - Mandate for public institutions to receive e-invoice
January 1st, 2025 - Mandate for G2G and B2G relations
January 1st, 2026 - Mandate for B2B together with an obligation for real-time reporting transaction data to the State Revenue Service (SRS)

The data will be collected via a centralized platform meant for both governmental and private sector entities. Further details regarding the specific architecture of the system are expected to be specified in the near future.

At this point there are no plans for introducing broader B2C electronic invoicing.

Archiving requirements for e-invoicing

Archiving requirements for e-invoicing in Latvia

There is an obligation to archive received invoices for 5 years with regard to goods and services invoices and for 10 years with regard to real-estate invoices from the end of the tax year in which they were received. No rules specifiying archiving format.

Comarch’s role

Comarch already acts as a Peppol Acces Point (AP) and Service Metadata Publisher (SMP) throughout Europe, allowing invoice exchange on a voluntary basis. We are monitoring any legal changes and will adapt accordingly.

Invoice mandate model

Invoice type B2B: Post-audit
Invoice type B2G: Post-audit

What is the required format of an e-invoice

Peppol BIS Billing 3.0 will be the required e-invoice format.

E-Invoicing Platform

Platform

www.latvija.gov.lv (for citizens and entrepreneurs)
eAddress (for government bodies)

Acts / Government sites

Ministry of Finance in collaboration with the State Revenue Service of the Republic of Latvia
State Treasury of Latvia
State Regional Development Agency of the Republic of Latvia (implementation and maintenance of technical solution only in the CEF project area)

Why is Comarch the best choice?

We have 20+ years of experience in carrying out various EDI, e-invoicing, and other document exchange projects around the world. In those years, we have successfully connected more than 130,000 entities from over 60 countries.

1. Legal compliance
Full compliance with the latest data exchange regulations and modern data transfer standards
2. Digitization
Applying new technologies and IT solutions in order to streamline workflows and automate activities and procedures
3. Individual approach
Tailor-made solutions based on processes specific to each company – own road map and a suitable pace of changes
4.Security
Highest level of security for all sensitive and important company data

Do you want to know more?

If your company is based or has branches in the Latvia and you need to prepare your billing and tax systems to comply with the new requirements. Click on the button below to get in touch with one of our experts.

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