2026: When e-Invoicing Becomes a Global Compliance Reality: What It Means for Latvian Companies

The year 2026 marks a significant turning point in financial and tax compliance across Europe. Electronic invoices, or structured e-invoices, are no longer merely a digital efficiency tool or a future initiative - in many countries they are becoming a mandatory legal requirement, particularly in B2B transactions. This development directly affects Latvian companies, especially those operating internationally.

E-invoicing should therefore no longer be viewed solely as a local regulatory obligation, but as part of a broader European shift toward digital taxation and data-driven compliance.

The European Context: Moving Toward Real-Time Tax Administration

The European Union is implementing the “VAT in the Digital Age” (ViDA) initiative, which aims to modernise the VAT system through structured data, automation, and near real-time information exchange. E-invoicing is one of the key building blocks of this reform.

In practice, this means:

• increased transparency of tax data,
• more effective VAT control,
• a significant reduction in manual accounting processes,
• growing reliance on standardised data formats.

E-invoicing is therefore not an isolated requirement, but the foundation for future real-time reporting obligations.

2026 in Europe: Where E-Invoicing Is Becoming Mandatory

The years 2025-2026 represent a transition period in many European countries toward mandatory e-invoicing in B2B transactions.

Key examples include:

• Belgium, where from 1 January 2026 B2B e-invoicing via the Peppol network becomes mandatory.
• Poland, where mandatory e-invoicing through the KSeF system is introduced in stages during 2026.
• France, where a phased e-invoicing rollout for all companies begins on 1 September 2026.

These developments demonstrate that e-invoicing is becoming a Europe-wide standard. Companies working with foreign partners increasingly need to comply not only with Latvian regulations, but also with the technical and legal requirements of other jurisdictions.

The Situation in Latvia: Alignment with European Trends

In Latvia, the implementation of structured e-invoices is taking place gradually:

• From 1 January 2025, structured e-invoices are mandatory in transactions with state and municipal institutions.
• From 1 January 2026, data from e-invoices related to public sector transactions must be submitted to the State Revenue Service.
• From 1 January 2028, mandatory e-invoicing is planned to be extended to B2B transactions.

Although B2B e-invoicing is not yet mandatory in Latvia in 2026, this period should be seen as a transition phase during which companies must prepare both technically and operationally.

The Key Risk in 2026: Voluntary in Law, Necessary in Practice

While Latvian legislation still allows paper or PDF invoices in B2B transactions, market practice increasingly makes structured e-invoicing unavoidable.

First, international partners are more frequently requiring structured e-invoices as part of contractual arrangements. This is driven by automation, faster payment cycles, and internal audit requirements.

Second, tax authorities across Europe are moving toward real-time access to transaction data. Companies that cannot provide structured, machine-readable invoice data may face increased administrative burden and compliance risk in the future.

Technical Requirements That Are No Longer Optional

To be prepared for both Latvian and European requirements, companies in 2026 should ensure:

• compliance with structured e-invoice standards (such as EN 16931 and Peppol BIS),
• secure data transmission channels rather than email-based PDF exchanges,
• integration of e-invoicing with accounting, ERP, and financial systems,
• proper archiving and data integrity in line with legal retention requirements.

These elements are increasingly becoming a core part of accounting and financial management, rather than a purely technical IT concern.

The year 2026 represents a turning point in which e-invoicing evolves from a local regulatory obligation into a European business standard. Even though full B2B e-invoicing in Latvia is scheduled to become mandatory only in 2028, companies that wish to remain competitive, efficient, and compliant should begin their preparation now.

Early adoption of structured e-invoicing not only reduces future compliance risks, but also improves financial governance and collaboration with business partners in Latvia and across Europe.

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