E-invoices, EDS, and the Increase in Minimum Wage: What Private Businesses in Latvia Faced This Year 0 9

Such results follow from a survey of Latvian companies conducted by the developers of the business management and accounting system Jumis.

Amendments to the laws stipulate that starting from January 1, 2026, all companies collaborating with budget institutions are required to submit invoices in a structured format, that is, e-invoices, to the State Revenue Service. This means that the SRS receives not only information about the invoice but also all its content. These changes will affect 59.3% of the 518 surveyed companies, forcing them to change their usual practices and adapt to the new order.

47.5% of respondents will feel changes in the EDS authentication system. Passwords that have been used until now will no longer be accepted, and access to EDS can only be obtained using one of the reliable electronic identification means – Smart-ID, electronic identification card (eID), secure electronic signature (eParaksts or eParaksts mobile), or certain internet banking authentication methods.

Adjustments to operations will also be made due to the increase in the minimum wage and the non-taxable minimum. The minimum wage has been raised from 740 euros to 780, and the non-taxable minimum has increased from 510 to 550 euros. This means that when paying salaries for January, accountants will have to recalculate the amounts paid for the majority of employees, as well as the size of labor taxes. For companies hiring employees at the minimum wage, overall expenses will also increase. In total, 40.5% of respondents believe that these changes will significantly impact their companies' operations.

To a lesser extent, companies will be affected by changes in alternative tax regimes and the reduced VAT rate. As is known, starting from July, as part of a one-year pilot project, the VAT rate on bread, milk, poultry meat, and eggs will be reduced to 12%.

"Compared to the hastily made amendments to the laws regulating business activities in previous years, this time the changes were approved in a timely manner, allowing entrepreneurs to avoid unnecessary anxieties and upheavals. This is undoubtedly a step in the right direction, and it is to be hoped that lawmakers will adhere to such a thoughtful approach to convince the business community that they are a reliable partner. Currently, entrepreneurs still doubt this – only 18.1% of respondents believe that the process of implementing changes in legislation has improved over the past three years," said Viesturs Slidinsh, the head of Jumis Pro, presenting the results.

The survey was conducted in January 2026, polling 518 Latvian companies.