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Executive summary

In Latvia electronic invoices are mainly used by large enterprises and enterprises, ensuring the provision of public services. Considering that laws and regulations, governing the procedure for billing of invoices and standards, setting criteria for execution of electronic invoices, to a large extent are not yet harmonized, there are different interpretations met in practice as to the form of electronic invoices. The most popular form of electronic invoice contains the disclaimer that the invoice is prepared in electronic form and is valid without signature. Such document, however, cannot be deemed as a wholesome payment document. For electronic invoices to be considered to be wholesome payment documents, it is necessary to ensure that the signature as an important element of the document is executed in one of the following ways: - it is an electronic signature as the entirety of electronic data, attached to the document and related thereto; - it is a secure electronic signature, meeting the requirements set under the Electronic Documents Law, including, but not limited to the aspect that it is linked to the signatory and certified by qualified certificate; or - it is an electronic signature, on the use whereof the parties have agreed in writing. On the whole the application of electronic invoices in practice in Latvia is still under development.

Legal aspects

E-invoicing is regulated by Law on Value Added Tax (in effect as of 01.05.1995 as amended), Article 8 whereof specifically contains a description of VAT invoice, and by Electronic Documents Law (in effect as of 01.01.2003.).

Important links

Latvian laws - www.likumi.lv,
E-commerce issues - www.eparvalde.lv,
State Revenue Service of the Republic of Latvia - www.vid.gov.lv Ministry of Finance of the Republic of Latvia - www.fm.gov.lv