Many entrepreneurs in Latvia have heard about electronic invoices and become worried. Some decided that paper invoices are already banned, while others confused the deadlines and feared fines. In reality, everything is arranged more logically and gently than the rumours suggest. The state is introducing structured electronic invoices in stages, and businesses have time to prepare calmly. Let us go through it step by step: what is mandatory right now, what will become mandatory later, and how to put your accounting system in order in advance.

This article is written for business owners, accountants, and the self-employed who issue and receive invoices in Latvia. There are no tangled technical phrases or frightening generalisations here. There are only clear explanations, concrete dates, and verified links to official sources. After reading the text to the end, the reader will know the current deadlines exactly and will be able to make a transition plan without panic.

Why does this topic matter so much right now? The reason is that a lot of outdated information surrounds electronic invoices. The deadlines were postponed, and many people still rely on the old dates. Yet precise knowledge of the rules saves money and nerves. That is why spending a few minutes reading today is wiser than dealing with mistakes later.

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What a Structured Electronic Invoice Is

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First, it is important to understand what we are even talking about. A structured electronic invoice is not just a PDF file sent by email. It is an invoice that is prepared, sent, and received in a structured electronic format. Such a format allows the invoice to be processed automatically and electronically, without manual data entry.

This format has a strict technical standard. A structured electronic invoice must comply with the European Union standard LVS EN 16931-1:2017. In practice, this means a machine-readable format, usually XML, rather than a document familiar to a person. That is why an ordinary PDF invoice does not fit this definition and is considered another type of invoice.

Here it is important to dispel one misconception right away. Many think that a nicely formatted PDF is an electronic invoice. But the difference is fundamental: a PDF is read by a person, while a structured invoice is read by a program. It is precisely the automatic processing that distinguishes a true e-invoice from an ordinary electronic document. This difference lies at the heart of all the new requirements.

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The official requirements for a structured electronic invoice are published on the website of the Ministry of Finance: fm.gov.lv

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Where the Requirement Came From

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To understand the current deadlines, it is useful to know the history of the issue. The introduction of structured electronic invoices is set by amendments to the Accounting Law. The first amendments were adopted by the Saeima on 31 October 2024, and they entered into force on 1 January 2025. The second amendments were adopted by the Saeima on 5 June 2025, and they entered into force on 12 June 2025.

It is precisely the second amendments that changed the key date. The latest amendments to the law postponed the start of mandatory use of electronic invoices in transactions between all companies. The deadline was moved from the beginning of 2026 to the beginning of 2028. This decision gave businesses an additional two years to prepare.

The reason for the postponement was quite practical. Many companies, especially small and medium ones, turned out to be technically unprepared for the transition in 2026. The state took this into account and decided to ensure a smoother transition. That is why today it is important to rely on the new deadlines rather than on outdated dates from old publications.

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The full text of the amendments to the Accounting Law is available on the official legal portal: vestnesis.lv

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What Is Mandatory Right Now

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Now let us move to the most important question. What exactly is mandatory today, and what is voluntary for now? Here it is necessary to clearly separate different types of transactions. Then the abstract rules turn into a clear picture for a specific business.

The main rule today concerns transactions with the state. Since 1 January 2025, electronic invoices are mandatory in settlements with state budget institutions. This concerns transactions between the state institutions themselves, as well as transactions between companies and the state. This means that if a company issues an invoice to a budget institution, this invoice must be a structured electronic one.

In official terminology, these segments are denoted by abbreviations. G2G is transactions between two budget institutions. B2G is invoices from a company to a budget institution. G2B is invoices from the state to a company. In all these cases, an electronic invoice is already mandatory. That is why companies working with public procurement should make sure their system is ready.

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Current Status by Transaction Type

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• Transactions with budget institutions (G2G, B2G, G2B): an electronic invoice is mandatory from 1 January 2025.
• Transactions between companies (B2B): the use of electronic invoices is voluntary until 2028.
• Transactions with natural persons (B2C): the obligation to issue a structured electronic invoice does not apply to them.

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What Will Become Mandatory from 2028

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Understanding future deadlines helps to plan in advance. The main change concerns transactions between companies, that is the B2B segment. From 1 January 2028, a company registered in Latvia, in a transaction with another company, will be obliged to issue the document for payment as an electronic invoice. At the same time, the issued electronic invoice will have to be submitted to the State Revenue Service.

At the same time, you can prepare already now. In B2B transactions, it is already allowed today to prepare electronic invoices on a voluntary basis. And voluntarily submitting the data of such invoices to the State Revenue Service is possible starting from 2026. That is why the period until 2028 is a convenient window for testing and smoothly setting up systems.

This staged approach is not accidental. First, the state made transactions with budget institutions mandatory, then gave businesses time for a voluntary transition, and only then introduces the obligation for everyone. Such an approach reduces the burden on small and medium businesses. That is why the reasonable strategy is not to wait for the last moment but to use the transitional period.

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Current information about the deadlines and procedure is published by the State Revenue Service: vid.gov.lv

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How Electronic Invoices Are Transmitted

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When the deadlines are clear, a technical question arises. How exactly do you send and receive structured invoices? Here the state has provided several channels, and a company can choose a convenient one. This removes the fear that you need to buy one expensive system.

The first channel is the free state services portal and unified electronic communication. Through the state portal system and the electronic address, you can send and receive invoices at no extra cost. This option is especially convenient for small companies with a small number of invoices. That is why even a business without a complex accounting program can meet the requirements.

The second path is private data exchange providers. The market has specialised services that integrate electronic invoices directly into a company accounting system. The third option is exchange via email by mutual agreement of the parties in a suitable structured format. In this way, each company has a choice to fit its scale and needs.

The choice of channel should be made consciously. A small business with a few invoices a month usually finds the free state portal sufficient. A medium and large company finds a private provider integrated with the accounting program more convenient. And exchange via email suits individual partners with whom there is a direct agreement. That is why, before choosing, it is useful to assess the real volume of invoices and the capabilities of your accounting system.

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Three Channels for Exchanging Electronic Invoices

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1. The free state services portal and the electronic address of unified electronic communication.
2. Private data exchange providers integrated into the accounting system.
3. Exchange via email by mutual agreement of the parties in a structured format.

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Important Practical Details

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The new rules have nuances that are easy to miss. Knowing these details helps to avoid mistakes during the transition. Let us examine a few practical points that often raise questions. They concern the format, advance invoices, and permitted exceptions.

The first detail concerns the format of documents. In transactions to which the obligation of electronic invoices will apply, issuing paper invoices or invoices in unstructured formats will become impossible. This means that the usual PDF will no longer work in these cases. But in transactions to which the mandatory requirements do not apply, paper and other formats can continue to be used.

The second detail concerns advance invoices. An advance invoice, which is intended for payment before receiving the goods or service, must also be issued as a structured electronic invoice. Many forget about this point and prepare advances the old way. That is why, when setting up the system, it is worth providing for advance invoices right away.

The third detail concerns exceptions. The law provides for cases when a structured electronic invoice may not be issued, for example for certain documents registered through cash systems. The specific exceptions are set by Cabinet of Ministers regulations. That is why, in disputed situations, it is worth checking the current norms or contacting a specialist.

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Why the State Is Introducing Electronic Invoices

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Any new requirement is easier to accept when its meaning is clear. The transition to electronic invoices is not just a bureaucratic whim. It is part of the overall strategy of digitalising accounting processes. This reform has concrete goals that ultimately benefit both the state and business.

The first goal is increasing financial transparency. When invoices are transmitted in a structured form, the data is easier to check and compare. The second goal is reducing the shadow economy, because automatic processing makes hiding transactions harder. The third goal is reducing manual work in accounting, since machine-readable invoices are processed faster and with fewer errors. That is why the reform works for the benefit of honest business.

There is also a direct benefit for companies themselves. Automatic invoice processing saves employee time and reduces the risk of typos in manual entry. Electronic exchange speeds up the receipt and payment of invoices, which improves cash flow. That is why many companies switch to electronic invoices voluntarily, even before the mandatory deadline. For them, it is not a burden but a way to put their finances in order.

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How the Implementation Is Going in Practice

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It is useful to look at how the reform looks in numbers. The implementation dynamics show that business is gradually mastering the new format. This helps to assess the real scale of change without exaggeration. And it is an extra argument in favour of preparing calmly and in advance.

The growth rates are quite telling. While at the beginning of 2024 only about 10 thousand electronic invoices were issued in Latvia, later this number grew to hundreds of thousands. Such growth is connected primarily with the mandatory transactions with budget institutions. That is why it can be said that the system already works and is being tested on real operations.

A reasonable conclusion follows from these dynamics. The sooner a company connects to electronic exchange, the more time it will have to debug processes. Those who start in a calm mode will avoid the rush before the mandatory deadline. But those who postpone everything until the last moment risk facing a burden and mistakes. That is why the transitional period until 2028 should be seen as a gift rather than a postponement of the problem.

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How to Prepare in Advance

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Theory becomes useful when it turns into a concrete plan. Let us look at a simple sequence of actions for a company. This plan helps to use the transitional period to good effect. It suits both a large business and a small company.

The first step is to assess your current accounting system. You need to understand whether it can issue and receive invoices in the LVS EN 16931 standard format. The second step is to choose a convenient exchange channel, from the free state portal to a private provider. The third step is to test the process on a voluntary basis without waiting for the mandatory deadline. This sequence removes a large part of the anxiety.

For those who work with public procurement, there is a separate piece of advice. Since the requirement already applies to transactions with budget institutions, checking the system cannot be postponed. But for other companies, it is reasonable to start the setup in a calm mode before 2028. In complex or non-standard cases, it is useful to turn to accounting specialists. Competent preparation turns the reform into an ordinary work task.

It is also useful to discuss the transition with your business partners in advance. If a counterparty already accepts electronic invoices, you can start the exchange on a voluntary basis and debug the process together. Joint testing reveals technical mismatches in advance rather than on the day of the mandatory transition. That is why a dialogue with suppliers and clients is an important part of preparation. The more partners switch in advance, the easier it will be for everyone.

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Frequently Asked Questions

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Are electronic invoices between companies mandatory already now?

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No, today the use of structured electronic invoices in transactions between companies remains voluntary. It will become mandatory from 1 January 2028. At the same time, you can prepare such invoices and test the process already now. And voluntarily submitting their data to the State Revenue Service is possible starting from 2026.

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Can invoices still be issued in PDF format?

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It depends on the type of transaction. In transactions to which the obligation of electronic invoices applies, paper and unstructured formats, including the ordinary PDF, cannot be used. In other transactions, issuing invoices in paper or another format continues for now. That is why it is important to understand which category a specific transaction falls into.

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Do advance invoices need to be issued as electronic ones?

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Yes, an advance invoice must also be issued as a structured electronic invoice where this requirement applies. An advance invoice is intended for payment before receiving the goods or service, and the general rule applies to it as well. That is why, when setting up the system, it is worth providing for the processing of advance invoices right away.

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What format must an electronic invoice have?

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A structured electronic invoice must comply with the European Union standard LVS EN 16931-1:2017. This is a machine-readable format that allows the invoice to be processed automatically. An ordinary human-readable PDF does not fit this definition. That is why a system that supports the required standard is needed to meet the requirements.

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Does the requirement apply to invoices to natural persons?

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The obligation to issue a structured electronic invoice is aimed at transactions between companies and with budget institutions. This obligation does not apply to invoices to natural persons, that is the B2C segment. That is why ordinary rules apply to retail sales to private clients. In case of doubt, it is worth checking the current norms or a specialist.

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How Lex&Finance Specialists Will Help with the Transition to Electronic Invoices

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The Lex&Finance team specialises in accounting and tax support and has worked with Russian-speaking clients in Latvia for many years. The company specialists know the current norms of the Accounting Law and the exact deadlines for introducing electronic invoices. That is why they help clients rely on the current requirements rather than on outdated dates from old publications.

Lex&Finance specialists audit a company accounting system, assess its readiness for the electronic invoice standard, and help to choose a convenient exchange channel. They explain which transactions already fall under the mandatory requirements and help to set up processes in advance, using the transitional period. In addition, the company advises on the nuances of advance invoices, exceptions, and submitting data to the State Revenue Service. Turning to professionals turns a technical reform into a clear and manageable action plan.