Invoicing Requirements in Latvia — Rules, Format and Common Mistakes
An invoice is one of the most frequently issued documents in any business, yet it's also where a surprising number of misunderstandings happen. A company can issue invoices for months before a client, an accountant, or a VID audit reveals that the documents don't meet legal requirements. The consequences range from an awkward reissue to a disallowed VAT input deduction, or even fines. This article brings together everything you need to know about issuing correct invoices in Latvia in 2026 — from the mandatory fields to special cases like VAT, e-invoices, and credit notes.
Key takeaways
Without a complete set of required fields, an invoice doesn't have valid status as a supporting document — even if the company isn't VAT-registered
Under the VAT Law, invoices must be issued: within 15 days of a domestic transaction, by the 15th of the following month for cross-border transactions, with separate deadlines for construction (12 months) and continuous services (6 months)
E-invoice use with government bodies (G2G/B2G/G2B) has been mandatory since 1 January 2025; B2B (between businesses) only becomes mandatory from 1 January 2028, not 2026
Under the Accounting Law, invoices generally need a signature, but electronically prepared invoices used for payment have defined exceptions
A credit note must reference the original invoice and state the reason for the correction — without this, it can create discrepancies in your VAT return
What Latvian law requires on every invoice — mandatory fields
Requirements for invoice content are set out in the Accounting Law and the Value Added Tax Law. An invoice is a supporting document, and its form is defined in legislation. Without a complete set of required fields, an invoice isn't valid either for accounting records or for VAT deduction.
Mandatory fields on any invoice (even without VAT):
Invoice number — a unique, sequential identifier.
Invoice issue date — the day the invoice was prepared.
Date of service provision or goods delivery — if different from the issue date, it must be stated separately.
Seller's details:
Name (for a legal entity — the full company name)
Legal address (or actual address, if different)
Registration number in the Enterprise Register
VAT payer number (if the company is VAT-registered)
Buyer's details:
Name (for a legal entity) or first and last name (for an individual)
Address
Registration number (for a legal entity) or personal code (for an individual, if required)
VAT payer number (if the buyer is VAT-registered and VAT is applied on the invoice)
Description of goods or services — detailed enough to identify the nature of the transaction.
Quantity and unit of measurement — how much and in what units (pcs, kg, hours, etc.).
Price per unit, excluding VAT.
Amount excluding VAT for each line item and the total amount excluding VAT.
Applicable VAT rate and calculated VAT amount (if applicable).
Total amount including VAT.
Payment due date and, if needed, the bank account number for receiving payment.
Many business owners don't realize that even if a company isn't VAT-registered, it still has to follow almost all of these requirements — the only difference is that the VAT-related fields are left blank.
Does an invoice need to be signed?
Under the Accounting Law, an invoice as a supporting document generally requires a signature confirming that the transaction took place. There are exceptions, however — for example, an electronically prepared invoice issued for payment and for accepting goods or services may not need a signature, provided the transaction is confirmed by another document (a contract, a purchase order, a delivery note) or the overall process ensures the document genuinely reflects a real transaction. In practice, this means a plain PDF invoice you email without a signature may be sufficient if you also hold other evidence of the transaction — but it's safer to sign your invoices or at least keep additional supporting documentation.
Source: Accounting Law
Practical example — a correctly issued VAT invoice
Let's say SIA "Marta Dizains" (VAT-registered) sells furniture to a customer for €2,000 excluding VAT. The invoice should show:
Line item | Value |
|---|---|
Amount excluding VAT | €2,000.00 |
VAT rate | 21% |
VAT amount | €420.00 |
Total including VAT | €2,420.00 |
The invoice must also state: the invoice number, issue date, delivery date (if different), both parties' details (including the seller's VAT number in the LV format), a description of the goods, quantity, and the payment due date. If the customer were a VAT-registered business in another EU country and the goods were shipped out of Latvia, the VAT amount would be €0.00, with a note that the 0% rate applies and a reference to the relevant VAT Law article (see below).
VAT invoices — additional requirements for VAT-registered businesses
If your company is VAT-registered, the invoice must also include:
The seller's VAT payer number — in the LVXXXXXXXXX format.
The buyer's VAT number (if the buyer is VAT-registered) — particularly important for intra-EU transactions where the 0% VAT rate applies.
A note on the reverse charge mechanism, if applicable — for example, for construction services or goods deliveries subject to this mechanism.
A reference to the relevant legal article, if the transaction is exempt from VAT or a reduced rate applies.
An important nuance: if the buyer is a private individual (not VAT-registered), the invoice doesn't need to state the buyer's registration number, but the VAT amount must still be shown. Conversely, if the buyer is VAT-registered but you aren't, the invoice shows no VAT, and you don't need to state your own VAT number either (since you don't have one).
If your turnover is approaching the VAT registration threshold, you can check the calculation with our VAT calculator.
Invoice issuance deadline
Latvia's VAT Law sets specific deadlines for when an invoice must be issued after a transaction:
Domestic transactions — within 15 days of the goods delivery, service provision, or receipt of an advance payment.
Cross-border transactions — by the 15th of the following month.
Construction services in Latvia — the invoice may be issued no less frequently than once every 12 months, if the service is provided on an ongoing basis.
Other continuous services in Latvia — at least once every 6 months.
Source: VAT Law, Article 125; see also Leinonen — new requirements for issuing VAT invoices
Issuing an invoice late isn't separately subject to a fixed fine on its own, but it can create a mismatch between the actual transaction date and the VAT return period, which may result in VAT being declared in the wrong period.
E-invoices — the real timeline in Latvia
It's worth separating two distinct questions that are easy to conflate — whether an e-invoice is a valid document, and whether using one is mandatory.
Is an e-invoice even legal? Yes — an e-invoice is fully legal and valid in Latvia, provided it ensures:
Authenticity — confidence that the invoice genuinely comes from the stated seller.
Content integrity — the invoice hasn't been altered after issuance.
Legibility — the invoice content is clearly readable.
These requirements can be met with an electronic signature (eParaksts, eID) or through structured data exchange, such as the PEPPOL network — PEPPOL itself ensures authenticity and integrity through a certified operator's infrastructure, so an e-invoice sent via PEPPOL generally doesn't need an additional qualified electronic signature.
When does e-invoice use and data reporting to VID become mandatory? This timeline is often presented incorrectly, so here it is according to VID's official material:
E-invoice use with government and municipal bodies (G2G, B2G, G2B) — mandatory since 1 January 2025 (for contracts concluded before the end of 2024 — no later than 1 January 2026).
E-invoice use between businesses (B2B) — mandatory from 1 January 2028, not 2026.
E-invoice data reporting to VID — mandatory for the G2G/B2G/G2B segments from 1 January 2026.
E-invoice data reporting to VID for companies registered in Latvia (B2B) — voluntary from 1 January 2026 to 31 December 2027, mandatory from 1 January 2028.
In practice, this means: if you sell to government bodies, e-invoicing is already mandatory for you. If you operate only in the B2B/B2C market, you have until 2028 to adapt — though adopting e-invoicing voluntarily now already significantly simplifies document handling, especially when working with larger corporate clients or EU partners.
How to issue an e-invoice in practice:
Using accounting software that supports PEPPOL or e-invoice standards (for example, Moneo, Jumis, Horizon).
Signing a PDF invoice with a secure electronic signature.
Using specialized e-invoice portals (for example, eInvoice.lv).
Invoice numbering — rules and best practice
The law requires that invoice numbering be unique and sequential. That means there can't be two identical numbers, and there shouldn't be unexplained gaps in the sequence.
Best practice:
Use a single numbering system across the whole company — regardless of whether several employees issue invoices.
Start with a simple numeric sequence (001, 002, 003...) or add a year prefix (2026-001, 2026-002...).
Never reuse a number even if an invoice is cancelled — the cancelled number stays in the system.
Number credit notes separately, adding a prefix like "KR" or "CN" (for example, KR-001).
The mistake we see most often: companies run several parallel numbering sequences (for example, one for domestic invoices and a separate one for exports) but fail to ensure the numbers don't overlap. The fix — a unified database, or at least clear prefixes that prevent duplicates.
What language can an invoice be issued in?
The Official Language Law's requirement to use Latvian applies clearly and unambiguously to documentation of state and municipal institutions. For invoices between private businesses, the law is more flexible:
The other party can request a different language. For foreign clients, an invoice can be in English, German, or another language.
VID may request a translation during an audit. If an invoice is in a foreign language and VID conducts an audit, it's advisable to also keep a Latvian version or at least a translation, to avoid extra complications.
Many companies use bilingual invoices — for example, Latvian and English in the same document. This satisfies both local requirements and the needs of foreign clients.
Credit notes — how to correctly cancel or amend an invoice
A credit note is a document that adjusts a previously issued invoice. It's used when:
A customer returns goods.
A service wasn't provided in full.
The invoice contained an error (wrong amount, VAT rate, quantity).
A credit note must contain:
A reference to the original invoice — its number and date.
The reason for the correction — a brief explanation of why the adjustment is being made.
A negative amount — a credit note reduces the total amount, so figures are shown with a minus sign (or clearly marked as a downward correction).
All the other mandatory fields, just like a regular invoice — number, date, seller's and buyer's details.
If the original invoice included VAT, the credit note must also show the VAT adjustment, and the VAT liability must be reduced accordingly. It's also important to correctly assign the credit note to the VAT return period it relates to — whether the correction affects the current period or a prior one. Many accounting programs (for example, Moneo) use their own internal transaction codes to automatically route the correction to the right line of the VAT return — the exact codes vary by software, so check your accounting system's documentation for the precise procedure. An incorrectly formatted credit note, or one assigned to the wrong period, can lead to discrepancies in your VAT return and questions from VID.
Invoices to foreign clients — EU and non-EU
Issuing invoices to foreign clients adds extra complexity — mainly because of how VAT applies.
Invoices to EU businesses (intra-community supplies)
If you sell goods to a VAT-registered business in another EU country, you apply a 0% VAT rate (Article 43(4) of the VAT Law); for B2B services the place of supply is normally in the recipient's country and the recipient accounts for the VAT (reverse charge). Conditions:
The buyer is a registered VAT payer in their own country.
The invoice must state the buyer's VAT number and the seller's VAT number.
A goods invoice must refer to the article under which the 0% rate applies ("0% VAT under Article 43(4) of the Value Added Tax Law"); a services invoice, where the recipient accounts for the VAT, must carry the note "reverse charge" (Article 125(1), points 15 and 16 of the VAT Law).
You must keep evidence that the goods left Latvia (transport documents).
Invoices outside the EU (exports)
When delivering goods to countries outside the EU, you apply a 0% VAT rate. Conditions:
You must keep the customs export declaration and transport documents.
The invoice can be issued in English.
Services to foreign clients
Determining how VAT applies to services depends on the place of supply. The general rule: for B2B services — the buyer's country (reverse charge); for B2C — the seller's country. There are exceptions (for example, for services related to immovable property), so it's advisable to consult an accountant.
Common mistakes when issuing invoices
Missing mandatory fields. A forgotten company registration number, legal address, or invoice number. Such an invoice isn't valid as a supporting document.
Incorrect VAT rate. For example, 12% applied instead of 21%, or a 0% rate applied without proper justification. VID checks this automatically.
Using a personal bank account. The invoice lists the owner's personal bank account instead of the company's account. This raises questions both in accounting and with VID.
Gaps in numbering. Missing numbers that aren't explained. VID doesn't always check this, but it can raise suspicion of undeclared income.
Issuing the invoice after the deadline. For domestic transactions — later than 15 days after the transaction; for cross-border transactions — later than the 15th of the following month. This can create a mismatch between the transaction date and the VAT return period.
A credit note with no reference to the original. The correction is left "hanging," and it's unclear which transaction it affects.
No proof of export on an export invoice. Without a customs declaration and a CMR waybill, the 0% rate can be challenged, and VAT will have to be paid as if it were a domestic transaction.
Confusing the B2B e-invoice timeline. Business owners often think B2B e-invoices are already mandatory in 2026 — in reality, only data reporting to VID for the G2G/B2G/G2B segments is mandatory; B2B use only becomes mandatory in 2028.
Issuing invoices correctly isn't hard once you set up a system — a standardized template, a clear numbering scheme, and a solid understanding of how VAT applies. Our team can help you streamline your invoicing process so it's automatic and compliant — whether you work with local or international clients. Get in touch, or see our accounting services.
Frequently Asked Questions
Is an invoice without a VAT number valid if the company isn't VAT-registered?
Yes. A company that isn't VAT-registered simply leaves the VAT rate, VAT amount, and its own VAT number off the invoice (since it doesn't have one) — all the other mandatory fields are still required.
Are B2B e-invoices already mandatory in Latvia in 2026?
No. B2B e-invoice use only becomes mandatory from 1 January 2028. In 2026, only e-invoice data reporting to VID is mandatory, for the G2G/B2G/G2B segments (transactions with government bodies); for B2B companies, this data reporting remains voluntary until the end of 2027.
How soon must an invoice be issued after a transaction?
For domestic transactions — within 15 days. For cross-border transactions — by the 15th of the following month. Construction and other continuous services have separate, longer deadlines (12 and 6 months, respectively).
Does an invoice have to be signed?
Generally — yes, though electronically prepared invoices used for payment and supported by another document (a contract, a purchase order) may have exceptions. If you're unsure, it's safer to sign the invoice.
What's the difference between a credit note and a new invoice?
A credit note corrects a specific, already issued invoice — it references the original and carries a negative (corrective) amount. A new invoice is a standalone document for a new transaction. Confusing the two can distort both your accounting records and your VAT return.
Can an invoice be issued only in English?
Yes, if the other party requests it (for example, a foreign client), though a translation may be needed in case of a VID audit. In practice, many companies use a bilingual (Latvian-English) format to satisfy both requirements at once.
Related reading: digital accounting and e-invoices.
See also: VAT registration in Latvia, digital accounting and e-invoices and the online withdrawal button and accounting for refunds.
Sources
Last updated: September 2026. Information based on the Accounting Law, the Value Added Tax Law, and official VID materials.
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