Lack of Knowledge and Concerns Hold Latvian Companies Back from Implementing E-Invoices

In less than two years, the turnover of electronic invoices will become mandatory for all Latvian companies; however, most merchants are in no hurry to switch to a machine-readable format that facilitates the work of accountants.

A survey of companies conducted by Jumis Pro, a developer of business management and accounting systems, showed that there is still a relatively low level of understanding regarding the use of electronic invoices in the business environment, and this significantly hinders the implementation of these automatically processed documents.

The incomplete understanding of entrepreneurs is evidenced by the responses to the question of what would motivate them to use e-invoices more frequently in their daily work. Seven out of ten respondents indicated that a clearly understandable procedure for sending and receiving invoices would be an important factor. The lack of clarity was confirmed by the second most popular response, chosen by 63.1% of respondents. They stated that they do not understand what actions the accountant would need to perform in the EDS (Electronic Declaration System) with the e-invoices available there.

An important factor is the functionality of e-invoice issuance systems. 60% of survey participants emphasized that it is important for them that the systems allow them to easily make adjustments to already sent invoices without the need to issue a corrective invoice. In turn, 52.1% expressed a desire to make larger, substantial corrections to sent invoices.

A significant portion of entrepreneurs is also concerned about the transmission of information included in invoices to controlling institutions. For example, 47.9% of respondents would like to know before the implementation of e-invoices what the State Revenue Service (VID) would do if it discovers discrepancies in amounts in e-invoices and VAT declarations, while 28.2% would be more open to the modern solution if not all information included in the e-invoice, such as the list of goods and their prices, were sent to VID.

"Initially, the turnover of electronic invoices in Latvia was planned to be introduced this year; however, the entry into force of the amendments was postponed for two years to allow more time for preparation. Both the survey results and the extraordinarily high interest in our webinar, which was attended by representatives of more than two thousand companies from all over Latvia on March 12, suggest that during this period, system developers will have to not only address technical issues but also significantly work on clarifying the essence of e-invoices to their potential users. The responses indicate that entrepreneurs still have many uncertainties, unanswered questions, and concerns that need to be addressed for the e-invoice exchange system to function effectively," commented Viesturs Slidinš, head of Jumis Pro.

As is known, at the end of September 2024, the Cabinet of Ministers supported the draft amendments to the Accounting Law prepared by the Ministry of Finance, which stipulates that from January 1, 2025, companies collaborating with budget institutions must be able to send and receive machine-readable, automatically processed e-invoices. The changes provided for the extension of this requirement from January 1, 2026, to all companies when issuing an invoice for payment to another company; however, the amendments to the Accounting Law adopted by the Saeima on June 5, 2025, postponed the date for the introduction of e-invoice turnover to January 1, 2028.

An e-invoice is a document that is prepared, sent, and received in a structured electronic format that allows for its automatic and electronic processing and complies with the EU standard LVS EN 16931-1:2017.

The survey was conducted in January 2026 by surveying 518 small, medium, and large Latvian companies. In the question about e-invoices, each respondent could choose several answer options.