Certified Accountant and VID License – What Every Business Owner Needs to Know

Certified Accountant and VID License – What Every Business Owner Needs to Know

Imagine you need a medical procedure. You wouldn't pick someone who simply "understands the human body well" but has no diploma, certification, or license. You'd look for a certified doctor – someone whose competence has been verified by an independent professional body.

A similar system has been in place in Latvia's accounting world since July 1, 2021, when licensing of outsourced accountants began. Since July 1, 2023, outsourced accounting services may only be provided by accountants who hold a license issued by the State Revenue Service (VID).

Key takeaways

• Since July 1, 2023, outsourced accounting services in Latvia may only be provided by a person holding a valid VID license (Accounting Law, Article 38).

• The license is valid for 5 years; it's required for both companies and self-employed individuals providing these services.

• The number of VID penalty decisions for operating without a license grew more than 11-fold between 2023 and 2025 — enforcement is tightening.

• You can check an accountant's license for free in VID's public register in a few minutes.

• A license is not the same as a certification: the license is a legal requirement, while a certification (e.g., from LRGA) confirms additional competence.

Important: This means that today, a person without a VID license may not oversee your SIA's finances – and this creates risk not only for the accountant, but for you as the business owner too. If you've just registered a company, check out our guide on registering a SIA in Latvia — setting up accounting is one of the first steps after registration.

The VID outsourced accountant license – what is it?

An outsourced accountant license is a permit issued by the State Revenue Service that allows a person or company to provide outsourced accounting services in Latvia. The license is issued for 5 years.

Why was the license introduced?

• to ensure the quality and safety of accounting services;

• to reduce shadow economy risks;

• to strengthen Latvia's international economic credibility;

• to reinforce the fight against money laundering and terrorism financing.

The licensing requirements apply both to companies providing outsourced accounting services (such as Balansis' accounting services) and to individuals who provide these services as self-employed persons.

How to get a VID license – requirements and process

To receive an outsourced accountant license, a person or company must meet several strict requirements.

1. Education and experience

An outsourced accountant (individual) must have:

If a company applies for the license, these requirements apply to the responsible accountant – a board member, sole trader, or employee responsible for providing the service. A company only needs one license (not one per employee).

2. Mandatory liability insurance

To receive the license, a valid civil liability insurance policy is mandatory.

This means a licensed accountant carries professional liability insurance – if an accountant's mistake causes your company to suffer losses, the insurance covers those losses.

3. Internal control system (ICS)

One of the most essential requirements is having:

• an internal control system for preventing money laundering;

• an internal control system for international and national sanctions.

These systems must be current, and VID checks them – without them, the license cannot be granted.

4. Application process

The license can be obtained remotely – through VID's Electronic Declaration System (EDS), by filling out the form "Application for an Outsourced Accountant License". You need to attach:

• a copy of the insurance policy;

• the internal control system (ICS);

• copies of documents confirming qualifications (diploma);

• a document confirming professional experience.

VID reviews the application within one month.

The license is mandatory – what does this mean for your company?

Since July 1, 2023, anyone providing outsourced accounting services in Latvia may only do so with a license issued by VID. This is set out in Article 38 of the Accounting Law.

Source: Accounting Law, Article 38

Who counts as an outsourced accountant?

A person who enters into a service contract (not an employment contract) with a company to provide accounting services. If such a person does not hold a valid VID license, they may not provide accounting services. If your accountant works for you under an employment contract as a regular employee, they don't need a license — the requirement only applies to outsourced services.

Penalties for operating without a license – real numbers

VID conducts inspections, and penalties are getting stricter. According to VID's published assessment of the licensing mechanism's impact, the number of decisions for operating without registration/license has grown as follows:

The total amount of fines imposed has also kept growing: VID data covering 2022–2025 (a longer span than the decisions-count table above) shows an increase from approximately €19,900 in 2022 to €109,910 in 2025.

Source: VID, "Impact of the Outsourced Accountant Licensing Mechanism on AML/CFT Prevention"

This shows that VID is actively monitoring compliance with licensing requirements, and the intensity of inspections keeps increasing year over year.

How to check if your accountant has a VID license

Before entrusting your SIA to an accountant, be sure to check their license. It only takes a few minutes.

Step by step:

1. Go to VID's Registry of Licensed Outsourced Accountants.

2. Find the "Public Database" section if you don't land there directly.

3. Select "Registry of Licensed Outsourced Accountants".

4. Search by the accountant's name or company's registration number.

The registry contains information on all issued licenses. The number of licenses issued has grown rapidly since licensing began:

Source: VID, "Impact of the Outsourced Accountant Licensing Mechanism on AML/CFT Prevention"

What if the accountant isn't in the registry?

Ask directly and request to see their license. An honest professional will show it without hesitation.

Remember: the absence of a license means this person is providing services illegally, and you, as the client, take on the risk.

Certification vs. VID license – what's the difference?

Professional associations (such as the Latvian Association of Accountants, LRGA) issue certifications that confirm an accountant's professional competence, but a VID license is a legally mandatory requirement to provide outsourced accounting services at all.

Ideally, your accountant has both a VID license and a professional certification – the license covers the legal requirements, while the certification demonstrates additional competence and professionalism.

Why choose a licensed accountant for your SIA?

At Balansis, we've seen both sides. We've taken over accounting from unlicensed accountants whose work had to be corrected for months. We've helped clients whose previous accountant had filed inaccurate declarations, resulting in VID-imposed fines. And we've seen just how big a difference it makes when a professional with a VID license oversees a company's finances.

Choosing a licensed accountant isn't just about quality – it's about legal compliance and risk management.

What does this mean for your SIA?

• You comply with the law. An unlicensed accountant is in breach of the law, and this creates risk for you too — VID checks may question the reliability of your filings.

• Fewer errors. A licensed accountant is required to have education, experience, and an internal control system – statistically, they make fewer mistakes.

• Protection if something goes wrong. Getting the license requires civil liability insurance – if a mistake does occur, the insurance covers the losses.

• A proactive approach. A licensed accountant thinks ahead – they'll notice when you're approaching the VAT registration threshold, suggest the optimal time to pay out dividends, and keep you informed about upcoming tax changes.

And if you're curious what this service costs, take a look at our article on accounting costs for small businesses — the license is one factor that affects price, but not the only one.

Frequently asked questions

Does my accountant need a VID license if they're a regular employee at my SIA?

No. The license only applies to outsourced accountants – individuals or companies providing services under a service contract. If your accountant is your employee under an employment contract, they don't need a license.

What happens if my accountant works without a VID license?

The accountant is violating the Accounting Law and can be fined. As the client, you also take on risk – the service is being provided illegally, which can raise additional questions during VID inspections.

How can I check whether an accountant has a valid license?

On VID's website, under "Public Database", you'll find the Registry of Licensed Outsourced Accountants – you can search by name or company name for free.

Does every employee at a company need their own license?

No. A company only needs one license, tied to the responsible accountant – a board member, sole trader, or designated employee.

How long does VID take to review a license application?

Usually within one month of receiving a complete application through VID's Electronic Declaration System (EDS).

Is a VID license the same as an accountant's professional certification?

No. A certification (for example, from LRGA) is voluntary and confirms professional competence, but a VID license is a legally mandatory requirement without which outsourced accounting services cannot be provided.

If you have more questions about managing your company's accounting, check out our FAQ section as well.

Summary – quick takeaways

Related reading: outsourced vs. in-house accounting and how to choose an accounting firm.

Legal sources and references

• Accounting Law, Article 38 – requirement for an outsourced accountant license

• VID: Registry of Licensed Outsourced Accountants – public database for checking licenses

• VID: "Impact of the Outsourced Accountant Licensing Mechanism on AML/CFT Prevention" – source for license issuance and penalty statistics

We at Balansis are ready to help

We're proud to provide accounting services under a valid VID license. We're happy to show you our VID license and answer any questions about our qualifications, insurance, and experience. Get in touch with us to learn more.

Last updated: September 2026.

This information is based on the Accounting Law, official VID materials, and the publicly available registry of licensed accountants. This article is general information, not legal or professional advice for a specific situation.