Invoicing and Tax regulation in Latvia
Invoicing Regulation in Latvia
In Latvia, invoicing regulation is mandatory and is managed by the State Revenue Service. All businesses need to fulfill these regulations, irrespective of whether they are b2b, b2c, or b2g. Invoices need to comply with the EU Directive 2006/112/EC, and the Value Added Tax Law of Latvia. Important mandatory details include sequential numbering, date of issue, VAT identification number, and more.
Real-time Reporting / Fiscalization in Latvia
The concept of real-time reporting or fiscalization is not currently mandatory in Latvia. This system, which involves the real-time transmission of data about business transactions to the tax authorities, is still under consideration on a political level. Therefore, businesses operating in Latvia aren't currently obliged to provide real-time reporting.
E-invoicing in Latvia
The adoption of e-invoicing in Latvia is mandatory for public sector units and entities providing goods and services to them. Since April 2020, the mandatory e-invoicing rule applies to any contract of a public person or an institution derived from public funds. For b2b or b2c there's no specified request, but it is a common practice due to its convenience and efficiency.
VAT/GST/Tax Compliance in Latvia
VAT compliance in Latvia is mandatory for b2b, b2c and b2g businesses. The standard VAT rate is 21% with reduced rates of 12% and 5% applying to certain goods and services. Registrations for VAT are mandatory if the annual taxable turnover exceeds €50,000. Non-resident traders providing goods/services to Latvian consumers (b2c) may need to register for distance selling VAT. For b2g transactions, reverse charge applies.