Type: Legislation
Latvia plans to require all Business-to-Business (B2B) transactions to use electronic invoicing starting January 1, 2026, according to the Ministry of Finance’s recent Shadow Economy Curtailment Plan for 2024-2027. This measure aims to address Latvia’s annual VAT Gap, which currently stands at €162 million. While there will be no immediate need for invoices to be pre-cleared with the government, a free e-invoicing platform may be provided to support compliance with this new mandate. The PEPPOL standard, already mandatory for Business-to-Government transactions in the EU, will continue to be utilized, promoting consistency across electronic invoicing processes. Additionally, Latvia is set to adopt the European Digital Reporting Requirements (DRR) and Continuous Transaction Controls (CTC) as part of the broader EU VAT in the Digital Age reforms.
Effective date: January 1st, 2026
