Latvia’s Cabinet Regulation, effective 1 January 2026, mandates structured electronic invoicing and reporting to the State Revenue Service (SRS) for all B2G, G2B, and G2G transactions, with B2B reporting becoming mandatory from 1 January 2028. The regulation specifies four delivery channels—e‑adrese, certified service providers, EDI, and email—each linked to a distinct SRS reporting method and requires XML invoices in UBL 2.1 or Peppol BIS Billing 3.0. Invoices must be reported within five working days of issuance, with contingency rules for technical disruptions.
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VATcube · about 1 month ago
Latvia will introduce a temporary 12% VAT rate on essential food products from 1 July 2026, while the standard rate remains 21% and a 5% super‑reduced rate applies to specific categories. Businesses must update invoicing, ERP, and VAT return processes before the effective date to avoid compliance issues.
BNN News · about 2 months ago
Latvia will lower the VAT rate on a range of essential food items from 21% to 12% effective 1 July 2026, following an agreement between the Ministry of Economics and retailers. The change covers bread, milk, poultry products, eggs and flour, and is designed to be fully reflected in consumer prices. The move is part of a broader low‑price basket initiative aimed at easing food costs for residents.
Bloomberg Tax · 5 months ago
Latvia's parliament has accepted Bill No. 1206 for consideration, which proposes reducing the VAT rate on firewood and thermal energy for household use from 12% to 5% between Jan. 1 and April 30, 2026. The bill also requires that invoices issued at the 12% rate during that period be corrected by the law’s entry‑into‑force date.
VatCalc · 5 months ago
Latvia has increased its Intrastat reporting thresholds for 2024, raising the Arrivals threshold to €380,000 and the Dispatches threshold to €220,000. These new thresholds will take effect on 1 January 2026, aligning Latvia with updated EU Intrastat reporting requirements.
Bloomberg Tax · about 16 hours ago
France's Tax Agency updated its administrative doctrine on 8 July 2026, clarifying VAT treatment for goods sales, lease-purchase options and related transactions. The guidance confirms VAT applies to transfers of tangible goods where the purchaser obtains owner-like disposal rights, treats hire-purchase arrangements and retention-of-title sales as supplies of goods, and classifies LPOs for tangible property as taxable services until the purchase option is exercised.
Numeral · about 18 hours ago
The EU imposes VAT on SaaS and software sales, applying a customer-location rule for both B2B and B2C transactions. SaaS sellers must collect VAT IDs, validate them via VIES, and apply the reverse charge for B2B sales to VAT-registered buyers.
Primary source
Read the full article at SNI TechnologyThis summary was published on VATfaqs.com on 7 January 2026. It relates to VAT developments in Latvia. The original source is SNI Technology.
