An invoice is one of the most frequently issued documents in any business, yet an astonishing number of misunderstandings revolve around it. SIAs issue invoices for months on end until a client, an accountant, or a VID audit uncovers that the documents do not meet legal requirements. The consequences can range from inconvenient reissuing to non-deductible input VAT or even penalties. In this article, we have gathered everything you need to know about issuing correct invoices in Latvia in 2026 — from mandatory fields to special cases like VAT, e-invoices, and credit notes.
What Latvian Law Requires on Every Invoice — The Mandatory Fields
The requirements for invoice content are set out in the Law on Accounting and the Value Added Tax Law. An invoice is a source document, and its form is prescribed by regulations. Without a full set of mandatory fields, an invoice is neither valid for accounting records nor for VAT deduction.
The mandatory fields for any invoice (including those without VAT):
Invoice number — a unique, sequential identifier.
Invoice issue date — the date the invoice is prepared.
Date of service provision or goods delivery — if different from the issue date, it must be stated separately.
Supplier details:
Name (for a legal entity — the full SIA name)
Legal address (or actual address, if different)
Commercial Register registration number
VAT payer number (if the company is registered as a VAT payer)
Customer details:
Name (for a legal entity) or given name and surname (for a natural person)
Address
Registration number (if a legal entity) or personal ID number (if a natural person and required)
VAT payer number (if the customer is a VAT payer and VAT is applied on the invoice)
Description of goods or services — sufficiently detailed to identify the nature of the transaction.
Quantity and unit of measure — how many and in what units (pcs, kg, hours, etc.).
Unit price exclusive of VAT.
Amount exclusive of VAT for each line item and the total amount exclusive of VAT.
Applicable VAT rate and the calculated VAT amount (where applicable).
Total amount inclusive of VAT.
Payment due date and, if necessary, the bank account number for receiving payment.
Many entrepreneurs are unaware that even if the company is not a VAT payer, it must still comply with almost all of these requirements — only the VAT lines are left blank.
VAT Invoices — Additional Requirements for VAT-Registered Companies
If your company is registered as a VAT payer, the invoice must additionally contain:
Supplier's VAT payer number — in the format LVXXXXXXXXX.
Customer's VAT number (if the customer is a VAT payer) — especially important for intra-Community supplies where the 0% VAT rate is applied.
A reference to the reverse charge mechanism, where applicable — for example, for construction services or supplies of goods subject to this mechanism.
A reference to the relevant legal provision, if the transaction is exempt from VAT.
An important nuance: if the customer is a natural person (not a VAT payer), the customer's registration number does not need to be stated on the VAT invoice, but the VAT amount must still be shown. Conversely, if the customer is a VAT payer but you are not, VAT is not shown on the invoice, and you must not state a VAT number (since you do not have one).
E-Invoices — Are They Legally Valid in Latvia?
The short answer: yes, an e-invoice is fully legal and valid in Latvia, provided it meets certain requirements. An e-invoice is an electronic document that replaces a paper invoice and must ensure:
Authenticity — certainty that the invoice genuinely originates from the stated supplier.
Content integrity — the invoice has not been altered after issuance.
Legibility — the invoice content is clearly readable.
These requirements can be met through an electronic signature (eParaksts, eID) or by using structured data exchange, such as the PEPPOL network.
From 2026, Latvia is moving towards mandatory e-invoicing for transactions with public authorities (B2G). Until then, e-invoices are voluntary, but using them significantly streamlines document management — particularly when dealing with larger corporate clients or EU partners.
How to issue an e-invoice in practice:
Using accounting software that supports PEPPOL or e-invoicing standards (e.g. Horizon, Jumis, Visma).
Signing a PDF invoice with a secure electronic signature.
Using specialised e-invoicing portals (e.g. eInvoice.lv).
Invoice Numbering — Rules and Best Practices
The law requires that invoice numbering be unique and sequential. This means no duplicate numbers are allowed, and there must be no unjustified gaps in the numbering.
Best practice:
Use a single numbering system throughout the company — regardless of whether invoices are issued by multiple employees.
Start with a simple numerical sequence (001, 002, 003...) or add a year prefix (2026-001, 2026-002...).
Do not reuse numbers even if an invoice is cancelled — the cancelled number remains in the system.
Number credit notes separately, adding a prefix such as "CN" or "KR" (e.g. CN-001).
The mistake we see most often: companies use multiple parallel numbering systems (e.g. separate sequences for domestic and export invoices) but fail to ensure the numbers do not overlap. The solution is a single database or at least clear prefixes that prevent duplicates from arising.
Language Requirements — Can You Invoice in English?
Under the Official Language Law, official documents in Latvia must be in Latvian. However, invoices may be issued in a foreign language if:
The counterparty so requests. For foreign clients, an invoice may be in English, German, or another language.
It does not hinder supervision. In the event of a VID audit, a translation into Latvian may be requested, so it is advisable to keep a Latvian version or at least a translation.
Many businesses use bilingual invoices — for example, in Latvian and English on the same document. This satisfies both local requirements and the needs of foreign clients.
Credit Notes — How to Correctly Reverse an Invoice
A credit note is a document that adjusts a previously issued invoice. It is used when:
A customer returns goods.
A service was not provided in full.
The original invoice contained an error (incorrect 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, so figures are shown with a minus sign (or clearly stating that it is a downward adjustment).
All other mandatory fields as for a standard invoice — number, date, supplier and customer details.
If the original invoice was issued with VAT, the credit note must also show the VAT adjustment, and VAT liabilities must be reduced accordingly. An incorrectly drawn up credit note can lead to discrepancies in the VAT return and questions from VID.
Invoicing Foreign Clients — EU vs Non-EU
Issuing invoices to foreign clients introduces additional complexity — mainly due to VAT application.
Invoicing EU Businesses (Intra-Community Supplies)
When selling goods or services to a VAT-registered business in another EU country, the 0% VAT rate is applied. Conditions:
The buyer is registered as a VAT payer in their country.
The invoice must state the customer's VAT number and the supplier's VAT number.
The invoice must include a reference to "Reverse charge — 0% VAT under Article 29 of the Value Added Tax Law".
Proof of the goods leaving Latvia must be retained (transport documents, CMR waybills).
Invoicing Non-EU Countries (Exports)
When supplying goods to countries outside the EU, the 0% VAT rate is applied. Conditions:
An export customs declaration and transport documents must be retained.
The invoice may be in English.
Services to Foreign Clients
When determining the VAT treatment for services, the place of supply rules must be considered. The general principle: for B2B services — the customer's country (reverse charge); for B2C — the supplier's country. There are exceptions (e.g. for services connected to immovable property), so it is advisable to consult an accountant.
The Most Common Invoicing Mistakes
Missing mandatory fields. Forgotten company registration number, legal address, or invoice number. Such an invoice is not valid as a source document.
Incorrect VAT rate. For example, applying 12% instead of 21%, or applying the 0% rate without proper justification. VID checks this automatically.
Using a personal bank account. The invoice states the owner's personal bank account instead of the company's current account. This raises questions both in accounting and with VID.
Gaps in numbering. Missing numbers that are not explained. VID does not always check this, but it can raise suspicions of undeclared income.
Late invoice issuance. An invoice must be issued within 15 days of the transaction, or at least by the 15th of the following month. Late issuance is not in itself a punishable offence, but it can cause VAT reporting delays.
Credit note without a reference to the original. The adjustment "hangs in the air" and it is unclear which transaction it affects.
No proof of export for a zero-rated invoice. Without a customs declaration and CMR waybill, the 0% rate can be challenged, and VAT may become payable as if it were a domestic transaction.
Issuing correct invoices is not difficult once you put a system in place — a standardised template, a clear numbering sequence, and knowledge of VAT application. Our team helps businesses set up their invoicing processes so they are automated and compliant — whether you work with local or international clients.
Last updated: May 2026. Information is based on the Law on Accounting, the Value Added Tax Law, and official VID materials.
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