Which account will need XML in 2026?
If a Latvian company submits an invoice to a Latvian budget institution (this is a public institution financed from the state or local budget), in 2026 this invoice must be in the structured e-invoice XML format and its data must be sent Latvian Tax Board VID no later than five working days after dispatch, as stipulated by Cabinet Regulation No. 749. If the recipient of the invoice is a foreign business client, for example an Estonian, Lithuanian or Finnish company, this domestic obligation for 2026 does not apply to you: VID confirms that e-invoice transactions with foreign companies are planned to be launched in 2030.. Whether your invoice requires XML therefore depends on the status of the buyer, not on whether the buyer generally operates in the public or private sector.
Three dates that should not be confused: 2025, 2026 and 2028
The Latvian e-invoice reform is moving in three separate stages, and it is these three dates that are causing the most confusion. The first deadline: from From 1 January 2025 A Latvian company that issues an invoice to a budgetary institution as a recipient of goods or services must issue a structured e-invoice. This rule is not only related to public procurement contracts, but applies to any transaction with this institution. Second deadline: from From 1 January 2026 the data of these invoices must also be transmitted to the VID. The obligation concerns G2G, B2G and G2B transactions between the state and Latvian companies. The third date is the general obligation for intra-Latvian business-to-business (B2B) structured e-invoices, which concerns invoices to another company registered in Latvia. This was originally planned for 2026, but the Saeima postponed it January 1, 2028. Until this deadline, you can continue to send a PDF invoice to a regular Latvian business customer without it having to be machine-readable XML.
Budget agency: check the status of the buyer, not the name
The biggest practical mistake is to assume that a “state-related” institution automatically means an e-invoice obligation. The Latvian Accounting Act classifies this category as a budgetary institution, a public law derivative partially financed from the state budget, and an extra-budgetary institution within the meaning of the Latvian Budget and Financial Management Act. These categories are defined in the list of definitions of the law.. This means that a company with only state participation, for example a state-owned company operating on a commercial basis, does not automatically fall into this group. It is a regular company and your invoice to it follows B2B logic, not B2G logic.
Before preparing an invoice, it is worth checking two things: whether the buyer is listed on the list of state or local government budget agencies, and whether they act as the recipient of the goods or services in your transaction, not just as an intermediary. In addition, Latvian rules do not set a minimum invoice amount or VAT threshold for this obligation., so even a 15-euro invoice to a small municipal institution must be a structured e-invoice.
How to send an invoice and notify VID: email address, operator or API?
A structured e-invoice is not an e-mail with a PDF attachment, but an XML file that complies with to the UBL 2.1 standard and the PEPPOL BIS Billing 3.0 specification. For an invoice addressed to a Latvian state institution, Cabinet Regulation No. 154 stipulates that the invoice of a supplier registered in Latvia must, in addition to the European standard, comply with the PEPPOL BIS Billing 3.0 specification. This is a mandatory data format, but the same regulation allows the use of several channels for sending the invoice: an official e-mail address (e-address), an e-mail address published on the buyer's website, or another channel agreed upon in the contract. The PEPPOL network itself is therefore not the only possible route.
General rules for invoice handling are coming Cabinet of Ministers Regulation No. 749, which is valid from 13 December 2025. If you use an official email address to exchange e-invoices, the system will automatically forward the invoice and related information to VID from 1 January 2026 and you do not have to do anything separately. If a company uses another channel chosen by the parties to exchange e-invoices, such as a system interface or email, the company submits an e-invoice to VID via the EDS API or uploads an e-invoice in XML format to EDS.
Five business day deadline and plan for errors
Regardless of the channel, one clear rule applies: an e-invoice must be submitted to VID once, no later than within five business days of the date of its dispatch. If this deadline passes, the next step depends on what the reason was.
What to do if the fault is an IT system failure?
In the event of a system failure, you or the operator must notify VID in EDS no later than the next working day after the deadline, stating the reason for non-submission, and submit the invoice within three working days after the fault has been rectified.
What to do if the error is due to other reasons?
In case of delay for any other reason, you must also inform EDS about the period and why the invoices were not submitted, and submit them within 30 calendar days after the cause has been established. Neither deadline extinguishes the obligation, but only postpones it.
Foreign buyer: what does not have to be applied in Latvia and what should still be checked?
If your customer is registered outside Latvia, for example in Estonia, Lithuania, Finland or elsewhere, a different logic applies today. Intra-Latvian B2B structured e-invoice obligation explicitly concerns an invoice to another company registered in Latvia, not a cross-border transaction. VID directly confirms: The January 1, 2026 rule only applies to companies, entrepreneurs and state/municipal government agencies registered in Latvia.. The same logic applies in the opposite direction: if a foreign company submits an invoice to a Latvian state agency, it does not have to format it in XML format or submit it to the VID.
This does not mean that you can forget all the rules when it comes to cross-border invoices. When sending an invoice to a Finnish or Estonian company, check three things separately: what the law of the buyer's country of residence requires, such as the local VAT invoice requirement; what your contract with the buyer requires, as some larger customers already want invoices in PEPPOL format voluntarily; and what the buyer's accounting system requires. The Latvian state simply will not force you to do this in 2026, because the decision remains a commercial, not a legal obligation.
| Feature | Latvian Budget Office (2026) | Foreign commercial buyer (2026) |
|---|---|---|
| Structured e-invoice obligation | Yes, from 1.01.2025 | No, there is no mandate within Latvia. |
| Data for VID | Yes, from 1.01.2026 | Not applicable |
| Required standard | UBL 2.1 + PEPPOL BIS Billing 3.0 | By agreement, often PDF |
| Submission deadline | 5 working days after sending | None |
| When can it change? | Intra-Latvian B2B is expanding 1.01.2028 | VID considers cross-border turnover from 2030 |
Vision 2030: Latvia's plan and the EU's ViDA
Two separate things are starting to fall into the same era and should not be confused. First, this is an internal Latvian plan, not a rule that has not yet come into force: the VID notes in its instructions that Mandatory e-invoicing for transactions with foreign companies is currently planned from 2030., and more detailed information will be added as they approach entry into force. Secondly, independently of Latvia's own timetable, they will enter into force at the European Union level VAT in the Digital Age (ViDA) package digital reporting requirements for cross-border B2B transactions from 1 July 2030. They are based on mandatory e-invoicing and affect all Member States, including Latvia, at the same time.
Practical conclusion from the perspective of 2026: Your invoices addressed to the Latvian budget institution require XML and VID notification already today, your invoices addressed to your Latvian business partner require it from 2028, and your cross-border invoices currently remain a matter of agreement – Latvia has currently planned a deadline of 2030 for turnover with foreign companies, while the EU ViDA requirements for cross-border B2B transactions are confirmed to enter into force on 1 July 2030.
FAQ
Is there a difference in the Latvian e-invoice obligation between a budget institution and a foreign buyer in 2026?
From 1 January 2026, invoices submitted to the Latvian budget authority must be in the structured e-invoice XML format and the data must be sent to the VID within five working days. This obligation does not apply to foreign business customers, as cross-border e-invoice transactions are planned only from 2030.
When will the B2B e-invoicing obligation come into effect in Latvia in 2026?
The general obligation for B2B structured e-invoices within Latvia was postponed to January 1, 2028. Thus, until 2028, a PDF invoice can be sent to a regular Latvian business without the XML format.
How to send a structured e-invoice to the Latvian budget institution?
The invoice must comply with the UBL 2.1 and PEPPOL BIS Billing 3.0 standards. The official e-mail address (e-mail address), the e-mail address published on the buyer's website or the channel agreed in the contract can be used for transmission. If an e-mail address is used, the system automatically sends the data to the VID.
What happens if the submission of an e-invoice to VID is delayed?
If the delay is due to an IT system failure, VID must be notified in EDS no later than the next business day and the invoice must be submitted within three business days after the failure has been eliminated. In case of delays due to other reasons, invoices must be submitted within 30 calendar days after the cause has been identified.