In 2026, the very structure of tax supervision in Latvia is changing. Many entrepreneurs have heard about the reorganisation of the State Revenue Service and become worried. Some decided there would be more inspections, while others feared new bodies with loud names. In reality, the picture is arranged more logically than the alarming headlines suggest. The state is redistributing functions between agencies to work more efficiently. Let us go through it calmly and step by step: what exactly is changing and how it affects an ordinary business.

This article is written for business owners, accountants, and managers in Latvia. There are no tangled 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 exactly which agency is now responsible for what and what to pay attention to in their work.

Why does this topic matter so much right now? The reason is that when the structure of supervisory bodies changes, the tactics of control often change too. The types of requests, the focus areas, and the order of interaction with business change. Yet understanding the new structure helps to respond calmly to requests and not get lost. That is why spending a few minutes reading today is wiser than dealing with surprises later.

It is worth removing unnecessary anxiety right away. The reorganisation of agencies is not a signal of the start of mass inspections. It is a management decision aimed at a more rational distribution of state resources. Most companies do not need to change anything urgently in their work. The main thing is to understand the new structure and calmly continue doing business.

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What the Essence of the Reform Is

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The main idea of the reform is simple and logical. The state decided to separate functions of the State Revenue Service that are different in their nature. Some functions are connected with serving taxpayers and administering taxes. Other functions are connected with investigating crimes in the tax and customs area. Previously, all this was concentrated in one agency.

The goal of the reform is clear. It is to separate the functions of tax administration and service provision from the functions of preventing, detecting, and investigating criminal offences. When service and investigation are separated, each direction can work more focused. That is why the State Revenue Service will be able to concentrate more on service and support for honest taxpayers.

From this follows an important conclusion for business. The reform is not aimed at tightening pressure on honest companies. On the contrary, its point is to increase the efficiency and quality of services for ordinary taxpayers. And the specialised functions go to a separate body. That is why, for honest business, the reform rather simplifies interaction with the state.

It is also useful to understand the state overall intent. When one agency simultaneously serves taxpayers and investigates crimes, a natural tension arises between these roles. Separating the functions removes this tension and makes each direction more transparent. That is why the reform fits into a broader trend towards specialisation of state bodies. It is an approach to organising tax supervision common in Europe.

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Official information about the structural reform of the State Revenue Service is published on the website of the Ministry of Finance: fm.gov.lv

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The Creation of the Tax and Customs Police

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The first key change is the appearance of a new agency. From 1 January 2026, a new direct administration institution started working in Latvia — the Tax and Customs Police. It is an independent body that deals with investigations. That is why it is worth understanding what exactly it does and where it came from.

The new agency did not arise out of nowhere. The Tax and Customs Police takes over all the previous tasks and functions of the Tax and Customs Police Board, which was previously a structural unit of the State Revenue Service. This board is liquidated, and its tasks pass to the new separate institution. That is why, in essence, it is about separating an already existing direction into an independent body.

The main tasks of the new agency concern crimes specifically. The Tax and Customs Police deals with detecting and preventing criminal offences in the area of state revenue and customs. In this way, the protection of the security and economic interests of Latvia and the European Union is strengthened. That is why this direction does not directly concern ordinary reporting and everyday communication with the tax authority.

There is an important detail about the subordination of the new body. Contrary to the original plans, the Tax and Customs Police works under the subordination of the Ministry of the Interior rather than the supervision of the Ministry of Finance. The change of institutional subordination strengthens cooperation with other law enforcement bodies. These include the State Police, the Internal Security Bureau, and the State Security Service.

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Official information about the new agency is published on the website of the State Revenue Service: vid.gov.lv

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Key Facts About the Tax and Customs Police

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• A new direct administration institution started working from 1 January 2026.
• It takes over the previous tasks and functions of the Tax and Customs Police Board of the State Revenue Service.
• The main tasks are detecting and preventing criminal offences in the area of state revenue and customs.
• The agency works under the subordination of the Ministry of the Interior.

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Adding Gambling Supervision to the SRS

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The second key change concerns the gambling and lottery industry. Here the movement goes in the opposite direction: not separation but, on the contrary, merging. This is important for companies in the relevant industry. That is why let us examine what exactly is changing and from what date.

The essence of the change is as follows. From 1 April 2026, the Lotteries and Gambling Supervision Inspectorate is added to the State Revenue Service. The reorganisation is carried out in accordance with the Cabinet of Ministers order of 3 October 2025. The goal of this change is to make state administration resources more efficient and strengthen the supervisory capacity of the industry. For this, supervision is integrated into a unified system of tax and supervisory administration.

After the merger, the industry functions are distributed within the agency. Supervision and control will be carried out by two structural units of the Non-Financial Sector Supervision Board of the State Revenue Service. One unit handles licensing, compliance, and legal matters. The other unit carries out on-site, remote, technical, and financial control. That is why the industry gets a single supervision window instead of two separate institutions.

Importantly, the tools for protecting society are preserved. During the reorganisation, all the essential tools of industry supervision and protection of society are preserved. These include the operation of the register of self-excluded persons and the mechanisms of control of the interactive environment. That is why, for players and society, the level of protection does not decrease, while supervision becomes more coordinated.

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Official information about adding the inspectorate to the State Revenue Service is published on its website: vid.gov.lv

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What Else Is Changing in Administration

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Besides the two main structural changes, there are also other novelties. They concern international information exchange and new types of assets. These changes are important for companies and individuals working with modern financial instruments. That is why it is worth knowing about them in advance.

One of the directions is the exchange of information about crypto-assets. From 1 January 2026, with amendments to the law on taxes and duties, international information exchange is expanded. Providers of crypto-asset services will give the State Revenue Service information about taxpayers transactions with crypto-assets. The obtained data is used for automatic exchange with the tax administrations of other countries.

It is part of a broader trend towards transparency. The exchange of information about financial accounts is also being improved, and the scope of new types of financial assets is being expanded. That is why those who work with crypto-assets and modern financial instruments should keep their records especially carefully. The transparency of operations becomes not a wish but a practical necessity.

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What It Means for Ordinary Business

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Now let us move to the most practical question. How does the reform affect an ordinary company that honestly pays taxes? Here it is important to separate the real consequences from unjustified fears. Then the picture becomes calm and clear.

For most companies, everyday communication with the tax authority almost does not change. Submitting declarations, paying taxes, and current requests still go through the State Revenue Service. The Tax and Customs Police deals with investigating crimes rather than ordinary reporting. That is why honest business continues to work in the usual mode.

At the same time, there is a nuance for companies in higher-risk areas. When the structure of supervisory bodies changes, the tactics of control often change too. The types of requests, the focus areas, and the order of interaction change. That is why companies from sensitive industries, such as gambling, excise goods, or cross-border transactions, should review their procedures, justifications, and documents. Careful order in documents always protects during any inspections.

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Why the Reform Took So Long

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Structural reforms rarely happen quickly, and this is no exception. Preparing for the separation of functions took about two years. This shows how complex the task was from a legal point of view. That is why it is useful to understand the context in which the changes took place.

The complexity was connected with the intertwining of functions. The direction that was previously called the Financial Police, and in recent years the Tax and Customs Police, was tightly built into the work of the State Revenue Service. Separating it required changes in many laws and subordinate acts. That is why the reform was prepared carefully, with the involvement of a special supervisory structure.

From this follows a reasonable conclusion for business. Since the state devoted so much effort to careful separation, it sought not to disrupt the continuity of work. The functions continue to be carried out without interruption after the reorganisation. That is why, for taxpayers, the transition is designed to be as smooth as possible. This reduces the risk of disruptions in everyday interaction with the agencies.

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Practical Conclusions for Different Industries

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The reform affects companies from different fields differently. It is useful to look at what to pay attention to depending on the industry. This helps each business find its situation. Then the general changes turn into concrete steps.

Let us take companies from the gambling and lottery industry. For them, the main change is the new single supervision window in the form of the State Revenue Service. They should clarify the current procedure for licensing, reporting, and control after the inspectorate is added. That is why it is useful for such companies to check the updated requirements in advance. This will protect against misunderstandings in interaction with the updated structure.

Now let us take companies working with crypto-assets and cross-border transactions. For them, transparency and the quality of records come to the fore. The expansion of international information exchange means that data about transactions will be transmitted between countries. That is why it is important for such companies to keep careful and complete records of operations. But for ordinary business from other industries, it is enough to simply keep documents in order and work as before.

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What Business Should Do Right Now

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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 meet the changes prepared. It suits both a small business and a large company.

The first step is to understand which agency is now responsible for what. Current reporting and services remain with the State Revenue Service. The second step is to assess whether your business belongs to higher-risk areas. If so, it is worth reviewing internal procedures and document preparation. The third step is to put the justifications for transactions and accounting documents in order. This sequence removes a large part of the anxiety.

For companies from sensitive industries, there is separate advice. It is worth treating the documents that justify transactions and operations especially carefully. Since the tactics of control may change, it is better to make sure in advance that everything is in order. And in complex or disputed cases, it is reasonable to turn to accounting and tax specialists. Competent preparation turns the reform into an ordinary work task.

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Frequently Asked Questions

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What is the Tax and Customs Police?

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It is a new direct administration institution that started working from 1 January 2026. It takes over the previous tasks and functions of the Tax and Customs Police Board of the State Revenue Service. The main tasks are detecting and preventing criminal offences in the area of state revenue and customs. The agency works under the subordination of the Ministry of the Interior.

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Will my communication with the tax authority change?

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For most companies, everyday communication with the tax authority almost does not change. Submitting declarations, paying taxes, and current requests still go through the State Revenue Service. The Tax and Customs Police deals with investigating crimes rather than ordinary reporting. That is why honest business continues to work in the usual mode.

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What is changing in gambling supervision?

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From 1 April 2026, the Lotteries and Gambling Supervision Inspectorate has been added to the State Revenue Service. The industry functions are now carried out by two units of the Non-Financial Sector Supervision Board. One handles licensing and compliance matters, the other carries out control. At the same time, all the essential tools for protecting society are preserved.

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Does the reform concern crypto-assets?

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Yes, from 1 January 2026, international information exchange is expanded. Providers of crypto-asset services will give the State Revenue Service information about taxpayers transactions with crypto-assets. This data is used for automatic exchange with the tax administrations of other countries. That is why those who work with crypto-assets should keep their records especially carefully.

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Should business change anything because of the reform?

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For most companies, everyday work does not change. But companies from higher-risk areas, such as gambling, excise goods, or cross-border transactions, should review their procedures and document preparation. Since the tactics of control may change, careful order in documents is especially important. In complex cases, it is reasonable to turn to specialists.

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How Lex&Finance Specialists Will Help You Adapt to the Reform

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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 structure of supervisory bodies and understand which agency is responsible for what after the reform. That is why they help clients calmly navigate the new system rather than get lost when the tactics of control change.

Lex&Finance specialists assess whether a client business belongs to higher-risk areas and help to put procedures and transaction justifications in order. They explain which documents are important to prepare in advance and accompany the company in interaction with supervisory bodies. In addition, the company advises on reporting, crypto-asset information exchange, and other administration changes. Turning to professionals turns a structural reform into a clear and manageable process.