Is B2B e-invoicing already mandatory in Latvia in 2026?
Picture an ordinary invoice: one Latvian limited-liability company (SIA) billing another SIA for a service or a shipment of goods. In 2026, that invoice still doesn't have to take the form of a structured e-invoice, a machine-readable version of the invoice that accounting systems can process automatically, as opposed to a document meant for a person to read. The obligation to use one arrives later. Under the transitional provisions of the Accounting Law, starting January 1, 2028, every company registered in Latvia that invoices another Latvian company will have to issue a structured e-invoice and, at the same time, submit that invoice's data to the State Revenue Service (VID). That deadline was originally set for 2026, but an amendment that took effect on June 12, 2025 pushed it back two years.
Invoices sent to budget institutions, meaning ministries, municipalities and similar public bodies, sit on a different timeline. E-invoicing there has been mandatory since January 1, 2025, and submitting that invoice data to VID became mandatory on January 1, 2026.
This is where the confusion starts. People notice the January 2026 date attached to public-sector invoicing and assume it applies to everyone, concluding that "e-invoicing is already mandatory." It isn't, at least not for ordinary B2B trade. The Accounting Law sets the B2B submission obligation to begin on January 1, 2028. It doesn't explicitly describe what happens before that date, but the only reasonable reading is that in 2026 and 2027, submitting structured e-invoice data for B2B transactions is not yet a legal requirement.
How do you check whether your buyer is a business or a budget institution?
Before deciding how to format an invoice, check who's on the receiving end. If the buyer is a ministry, a municipality or another budget institution, a structured e-invoice is already the only form VID will accept. VID explains that "budget institution," in the sense the Accounting Law uses it, covers budget-funded bodies, derived public entities that are partially financed from the state budget, and non-budget-funded institutions. You can check where a specific counterparty falls by looking up its registration number in the Central Statistical Bureau's register. If your buyer is simply an SIA, an AS (joint-stock company) or a self-employed person, in other words a private business rather than part of the public administration, you can keep sending a plain PDF in 2026, and that's entirely legal.
What actually counts as a structured e-invoice in Latvia?
A PDF attached to an email is a document meant for a person to read, not a structured e-invoice, no matter how well-formatted it looks. A system can't process it automatically. A structured e-invoice, as the law defines it, is instead prepared, sent and received as a machine-readable XML file (a text format built for software to read directly, rather than for a person) that complies with the European standard EN 16931. In practice, that means the XML file's structure has to follow the UBL 2.1 and PEPPOL BIS Billing 3.0 specifications, technical rule sets that define exactly which fields an invoice must contain and how they're labeled. It's the same format already running between government agencies. If your accounting software already has this export function, there's nothing stopping you from switching it on for B2B invoices in 2026, even though no law requires it yet.
What are the four practical ways to send a B2B e-invoice in 2026?
Cabinet Regulation No. 749 sets out several delivery channels, and you can mix and match them:
- The official electronic address (e-adrese): a state-run digital mailbox account, if you've activated one, although for now this route is built primarily for exchanges with government bodies, not between two private companies.
- An operator or PEPPOL channel: a service provider that delivers the XML file to the recipient and, in parallel, can pass it on to VID.
- Any other mutually agreed channel: a direct integration between two accounting systems, or even plain email with an XML file attached, as long as both sides have agreed to it.
- VID's EDS portal: this isn't a delivery channel to your customer at all. It's a data-submission tool. EDS only accepts an XML file, not a PDF, and you'd use manual upload or its API only if you choose to submit e-invoice data to VID.
How do the e-address, VID and the five-business-day rule apply to B2B invoices?
The law does not dictate which channel two companies use to exchange invoices between themselves. That's something businesses need to agree on directly. Latvija.gov.lv's e-address currently isn't a universal B2B option, as the State Data Protection Inspectorate (VDAA) notes: legal entities which aren't state institutions can't use the e-address to communicate with each other. So two private companies can't send invoices directly to one another through it. If B2B invoice data does end up reaching VID, voluntarily, since it isn't required in 2026 or 2027, it happens either through an operator or through EDS, and one submission deadline applies either way: the e-invoice must reach VID no later than five business days after the day it was sent. If a system outage causes a delay, you need to notify EDS by the next business day at the latest, and then submit the invoice within three business days of the outage being resolved.
A practical 2026 checklist for getting ready for 2028
You don't need to rebuild your entire invoicing process today, but starting a year before the deadline isn't smart either. A sensible order of operations:
- Ask your three to five biggest B2B customers which channel they'd want a structured e-invoice delivered through, if you send them one.
- Check whether your accounting software already exports XML in line with the EN 16931 standard and the PEPPOL BIS Billing 3.0 format.
- Run one test send with a single business partner: better to find the bugs in 2026, when it's optional, than in 2028, when it isn't.
- Only set up the VID data feed if both sides already use it. Otherwise it's extra work with no payoff yet.
- Keep a PDF preview available for clients and staff members who still rely on a human-readable invoice day to day. XML and PDF can run side by side.
FAQ
Will B2B e-invoicing be mandatory in Latvia in 2026?
In 2026, B2B e-invoicing will not be mandatory in Latvia. The obligation will begin on 1 January 2028. The exception is budget institutions, for which structured e-invoicing will already be mandatory from 2025.
How to check if the buyer is a B2B company or a budget institution?
Check the company status in the register of the Central Statistical Office of Latvia. If the buyer is a ministry, municipality or other budgetary institution, the e-invoice must be structured. If the buyer is an SIA or a sole proprietorship, B2B rules apply.
What is considered a structured e-invoice in Latvia?
A structured e-invoice is a machine-readable XML file that complies with the EN 16931 standard and the PEPPOL BIS Billing 3.0 specification. A structured e-invoice attached to a PDF file will not be read.
What are the four options for sending B2B e-invoices in Latvia in 2026?
Possible sending channels are: official email address (not suitable between two private companies), operator or PEPPOL channel, other mutually agreed channels (for example, email with XML file) and VID EDS (data submission tool, not for sending to the client).