From 1 January 2026, Latvia moves into a new phase of electronic invoicing. Cabinet of Ministers Regulation No. 749, which strengthens tax compliance, sets the rules for structured e-invoice circulation and for submitting structured e-invoice data to the State Revenue Service (VID). For many businesses, the biggest shift is not “sending invoices by email”; it’s switching from documents that humans read to data that systems can process.

This matters even if you mostly invoice other private businesses, as part of the broader digital transformation. The full B2B obligation comes later, but the framework is live now, and early adoption reduces last-minute pressure before 2028.

This article explains what counts as a structured e-invoice (and why a PDF doesn’t), who the rules apply to, how submission of e-invoice data to VID works (channels and deadlines, heading towards real-time reporting), and a practical preparation plan your finance team can start using this month.

What counts as a structured e-invoice, and why a PDF is not enough

A structured e-invoice is not a PDF invoice attached to an email, and it’s not a scanned invoice. It’s a machine-readable XML file in a structured data format where each invoice element (supplier, buyer, VAT rate, totals, dates, line items) sits in a defined field that software can recognise and validate.

Think of it like the difference between a photo of a form (much like PDF invoices) and the form’s data entered into the right boxes in a structured data format. The photo can be read, but it can’t reliably be processed without someone re-typing it. A structured XML invoice, by contrast, is ready for systems to pick up and post into accounting records.

In practice, this changes day-to-day work in ways that are easy to feel:

  • fewer repeated steps, because key fields can flow into accounting tools without manual entry

  • fewer mismatches, because totals and VAT logic can be checked automatically

  • faster booking and approvals, because invoice data arrives in a consistent format

Structured invoicing also makes it easier to build internal checks. When invoices follow the same structure, you can spot missing purchase order references, invalid VAT rates, or incomplete buyer details earlier, before they turn into payment delays or VAT questions.

The formats Latvia expects, UBL 2.1 and PEPPOL BIS Billing 3.0 (CIUS)

Latvia’s structured e-invoice approach relies on recognised international standards compliant with EN16931, the base European standard. Unlike traditional EDI, these modern formats act like a shared language between systems, so invoices can move between different software platforms without losing meaning. Other European standards like ZUGFeRD or XRechnung provide similar context for structured invoicing.

The two formats referenced in the new rules and supporting guidance are:

  • UBL 2.1: a widely used UBL “Universal Business Language” structure for invoices and other business documents.

  • PEPPOL BIS Billing 3.0 (CIUS): a Peppol billing specification, with a common usage profile (CIUS) that supports consistent interpretation.

You don’t need to be technical to benefit from what this brings. For finance teams, the key point is compatibility. If your invoicing or accounting system can create and validate invoices against these structures, you reduce the risk of rejected invoices, failed submissions, or incorrect VAT data.

What businesses gain, faster processing, fewer mistakes, clearer VAT records

The core gain is not “paperless admin”, it’s cleaner data. Clean data reduces friction across the full invoice cycle: issuing, receiving, posting, reconciling, and reporting.

Common improvements businesses see when structured e-invoicing is done properly include:

Less manual entry: fewer copy-paste steps across tools, which lowers the chance of typing errors.
Faster reconciliation: consistent fields make it easier to match invoices to contracts, deliveries, and payments.
Cleaner VAT support: when VAT rates and amounts are structured, review becomes simpler and issues are easier to trace.
More predictable processes: structured data helps you build repeatable checks and approvals, even as volumes grow.

These benefits land most strongly in busy periods, month-end closing, and VAT reporting deadlines, when manual processes usually break first.

What the new MK rules (No. 749) require, who they apply to, and the key deadlines

Regulation No. 749 is formally titled “Kārtība, kādā organizē un īsteno strukturētu elektronisko rēķinu apriti un kādā strukturētu elektronisko rēķinu datus iesniedz Valsts ieņēmumu dienestam”. It was adopted on 9 December 2025 and applies from 1 January 2026. This regulation establishes Latvia's Continuous Transaction Controls framework, aligning with the EU's 'VAT in the Digital Age' (ViDA) initiative to reduce the tax gap and improve VAT compliance through structured electronic invoicing.

At a practical level, the regulation does three things that businesses should care about:

  1. It defines how structured e-invoices circulate between transaction parties and which delivery channels are allowed.

  2. It sets out how structured e-invoice data can be submitted to VID, including the submission routes for VAT reporting requirements.

  3. It introduces timing and “what to do if something goes wrong” rules, so late submission is handled consistently.

For reference, you can read the regulation on the Latvian legal portal: MK noteikumi Nr. 749 (likumi.lv). The scope links back to Latvia’s Accounting Law: Grāmatvedības likums (likumi.lv).

Even if your business is not yet forced to exchange structured e-invoices in B2B relationships, the safer approach for 2026 is to treat this as a preparation year. Switching invoice formats and workflows always takes longer than expected, because it involves systems, people, and trading partners.

Who is in scope, companies, sole traders, and anyone under the Accounting Law

The rules apply broadly to the subjects covered by the Accounting Law. That includes:

  • limited companies and public limited companies

  • sole traders and other registered businesses

  • individuals carrying out economic activity, who are treated as businesses for these purposes

This is important because e-invoicing is often seen as “something for large firms”. Regulation No. 749 does not read that way. The direction is clear: structured invoicing becomes the normal method, and smaller entities need a workable route, even if they do not have complex IT systems.

The timeline that matters, what is mandatory now, what becomes mandatory in 2028

The obligations depend on who you invoice.

A clear way to view the timeline is:

  • From 1 January 2025: structured e-invoices are mandatory in B2G flows involving budget institutions (public sector relationships).

  • From 1 January 2026: the submission framework to VID is active, and B2B businesses can submit structured e-invoice data to VID on a voluntary basis.

  • From 1 January 2028: structured e-invoice exchange and submission become mandatory for B2B.

If you issue invoices to the public sector, you already live in the structured world. If you are mostly B2B, 2026 and 2027 are your window to set up the right tools, agree channels with partners, and build internal controls without the pressure of a hard deadline.

How to submit structured e-invoice data to VID, channels, deadlines, and what happens if you miss them

Regulation No. 749 sets out a practical model: you issue a structured e-invoice, send it to your customer using an agreed delivery channel, and submit the structured data to VID using approved routes. Depending on the channel, submission to VID can happen automatically or require a separate step. These routes impact both accounts receivable and accounts payable departments by streamlining processes and reducing manual data entry.

The main submission options described in the regulation are:

  1. Official electronic address (e-adrese): if you use e-adrese for invoice circulation, the system supports automatic forwarding of the e-invoice message and related message information to VID, helping eliminate manual data entry.

  2. Operator channel integrated with VID API: a service provider (operator) facilitates exchange under the four-corner model and can submit e-invoice data through an integration with VID’s API.

  3. VID EDS API or manual XML upload in EDS: you can submit via VID’s Electronic Declaration System (EDS) interface, either through an API connection or by uploading the XML file.

The central timing rule is simple: submit the e-invoice to VID once, no later than five working days after sending the invoice. If it is submitted through one channel, it should not be re-submitted through another.

VID stores submitted structured e-invoices in the form they are submitted, meaning XML data without attachments. The storage period is at least five years, which aligns with the minimum document retention period under Latvia’s accounting rules. The intent is also to support VAT reporting, including the ability to help pre-fill parts of VAT annexes using the e-invoice data VID already holds.

Choosing the right channel, e-adrese, operator, or EDS upload

The best channel depends on volume, internal capacity, and how automated your accounting already is.

E-adrese often suits organisations that already use official channels, especially where automatic forwarding to VID is useful and the workflow is stable.
An operator is a common choice when invoice volumes are higher, when you need integrations, or when you want validation and routing handled as a managed service.
EDS upload can work for small volumes or as a back-up route, but it adds manual steps and can be harder to control at scale.

One point is often missed: your customer and your business must agree the delivery channel for e-invoice exchange. That agreement is part of operational readiness, not only an IT setting.

Compliance basics, the five-working-day rule, one-time submission, and late-submission steps

The regulation also sets out what to do when you cannot meet the five-working-day deadline. A compact compliance checklist looks like this:

  • Submit within five working days of sending the invoice.

  • Submit only once, using the chosen route.

  • If your own system (or the operator’s) is down and you cannot submit on time: notify VID through EDS by the next working day after the deadline, state the reason, then submit within three working days after the issue is fixed.

  • If VID’s submission solution has disruptions: submit by the next working day after VID announces the issue has been resolved.

  • If submission is missed for other reasons: notify VID in EDS, state the reason and the affected period, then submit within 30 calendar days of discovering the issue.

These steps are not just “paperwork”. They protect you by creating a traceable record of why submission was late and how it was corrected.

A practical preparation plan for 2026, plus what Numbero adds for day-to-day invoicing

For most businesses, preparation is not a single project. It is a set of small decisions that reduce risk and deliver cost savings: choosing a format, confirming system support, agreeing channels with partners, and building habits with automation so the five-working-day rule is met without stress.

A sensible 2026 plan looks like this:

Start by mapping your current invoicing flow. Where does invoice data come from, who approves it, what gets entered manually, and what is stored where? This shows you where errors are most likely and where structured data and automation will help most.

Next, check whether your invoicing or ERP system can generate structured e-invoices in the required formats, and whether they can validate the XML before sending. Validation matters because many problems come from missing fields, inconsistent VAT calculations, or incorrect buyer identifiers.

Then decide on your delivery channel mix. Some businesses will use one route for public sector invoices and another for B2B. That’s acceptable as long as the process is controlled and staff know which route applies. Improved invoicing efficiency here can also help mitigate late payments.

Finally, test. Generate one structured invoice, send it through the chosen channel, and confirm the submission path to VID where applicable. A small test now is easier than a rushed migration later.

Readiness checklist, what to review this month to avoid surprises later

Use this short checklist to make progress without turning it into a long internal programme:

Finance lead: confirm which invoice types you issue (B2G, G2B, B2B) and which deadlines apply.
IT or system owner: confirm your ERP system supports UBL 2.1 or PEPPOL BIS Billing 3.0 (CIUS), and how validation is handled.
External accountant: confirm how structured invoices will be posted and reviewed, and how VAT checks will be done.
Process owner: set an internal deadline earlier than five working days, so you have time for fixes.
Records control: remember that VID stores XML without attachments, so keep supporting files (contracts, delivery notes) in your own system with a clear audit trail.

Numbero benefits for structured e-invoices, compliance, XML output, and human-readable view

Ar Numbero, you get:

✅ compliance with Latvian regulations,

✅ structured XML e-invoice creation,

✅ easy daily invoice issuing with automation,

✅ reduced risk of errors and delays,

✅ readiness for VID requirements before the mandatory deadlines,

✅ the ability to view XML e-invoices in a human-readable form,

using the Numbero e-invoice reader, https://numbero.app/e-invoice

Conclusion

Electronic invoicing in Latvia now defines structured e-invoices under MK Regulation No. 749 from 1 January 2026, built on XML formats that systems can read, not PDFs that humans must re-type. The rules apply widely under the Accounting Law, including companies and self-employed persons, and the B2B obligation is set to arrive in 2028. Submission to VID can happen through e-adrese, an operator integrated with VID’s API, or via EDS using an API or manual XML upload, with a clear five-working-day submission deadline after sending. Early preparation reduces process risk and lowers the chance of late submissions when B2B becomes mandatory. Choose one invoice flow, test it end-to-end, and settle on a channel you can control for strong tax compliance, then build from there.