The Latvian Ministry of Finance has recently published a draft plan aimed at curbing the shadow economy for the period of 2024-2027, which includes the implementation of a mandatory e-invoicing system for all B2B transactions.

Impact

According to the draft plan, issuing and receiving structured e-invoices for B2B transactions will become mandatory. This initiative is designed to streamline the invoicing process and introduce a technical solution for the efficient circulation of e-invoices. Additionally, the system will feature the implementation of real-time reporting, aimed at enhancing the monitoring and compliance of VAT payment obligations.

Latvia is paving the way for mandatory B2B e-invoicing, with further details anticipated to be released in the coming months.

Currently local government institutions in Latvia are required to accept e-invoices in their public procurement process as per the specifications established by the European Union. However, the Latvian Finance Ministry is proposing a plan to introduce electronic invoicing as mandatory for both B2B and B2G transactions from 2025. At that stage the circulation of e-invoices will have to be made in accordance with the European Electronic Documents and e-Invoicing Network (PEPPOL) which allows both sending and receiving of e-invoices in a standard mode.

Understanding the Landscape

E-invoicing and e-procurement are pivotal aspects of 21st-century business. The Latvian government has taken significant steps to promote e-invoicing adoption.
Here are the key points:

Mandatory Implementation Timeline:

Phase 1 (May 1, 2022): Suppliers in the public sector must use e-invoices when billing the government. The government receives and stores these invoices.

Phase 2 (July 1, 2022): Public entities send e-invoices to companies, which should be able to receive and store them.

Phase 3 (January 1, 2023): E-invoicing becomes mandatory for the entire B2B sector.

  • Target Completion (December 30, 2025): Full implementation of Latvia’s electronic invoicing system.

PEPPOL Standard:

  • Latvia’s e-invoicing will align with the European Electronic Documents and e-Invoicing Network PEPPOL (Pan-European Public Procurement Online) standard.
  • The government aims to set up interoperability and connectivity between Latvia and other EU Member States through the PEPPOL network.

Latvia’s E-Invoicing Solution:

Latvia has developed an e-invoicing solution based on its existing Secure Electronic Delivery Platform (e-Address).
Key features include:

  • E-invoicing integration in eAddress for secure transmission.
  • An interface for submission and receipt of e-invoices.
  • A public e-invoicing API library for transmission between different accounting systems.
  • Connection with the PEPPOL network.

Benefits for Businesses:

  • Efficiency: Streamlined processes save time and reduce paperwork.
  • Accuracy: Digital invoices minimize errors and enhance data accuracy.
  • Cost Savings: Reduced printing and postage costs.
  • Compliance: Adherence to legal requirements ensures smooth operations.

Conclusion

Embrace the digital revolution and consider SPS Commerce as your leading international E-invoicing provider.

Whether you’re a business owner, an accountant, or a curious learner, staying informed by subscribing to our newsletter about e-invoicing developments and more can empower you to make better decisions and streamline your financial processes. 

Questions about E-invoicing in Czech Republic? Contact our experts!

You may find this interesting...

Blog - E-Invoicing Success Stories - Thumbnail BlogE-Invoicing Success Stories: Transforming Financial Operations from Manual to Modern ExcellenceCFOs are leveraging technology, particularly electronic invoicing, to achieve operational excellence in business. This blog highlights real-world success stories of companies transitioning to modern practices with SPS Commerce's (formerly known as TIE Kinetix) innovative solutions.
Blog_E-invoicing mandatory for government:_Thumbnail BlogE-Invoicing Mandatory for Government: Efficiency and Transparency in Financial ProcessesThe digital revolution is not only changing our lives but also how governments operate. One of the most significant changes is the mandate for electronic invoicing, known as e-invoicing, for government agencies. For instance, The Netherlands has already applied this mandate.  In this blog, we will delve into the reasons behind this transformation, the role of e-invoices within the government, the efficiency demonstrated by the Dutch government, and the importance of an e-invoice portal for a seamless transition.
Hoe voldoe ik aan de Peppol compliancy eisen? BlogPeppol Compliancy: List of RequirementsWe’ve filtered out the information that’s important for you to be aware of as either the sender and/or recipient of electronic document exchange via the Peppol network.