The approach of 2026 sees businesses actively getting ready to accept a key change to the process of accounting – adoption of structured electronic invoices (e-invoicing). Despite the challenges this move brings, it allows businesses and accountants to optimise the processing of invoices and make it more transparent. This article explores how e-invoicing will change the accountant’s work, as well as looking at the main advantages and disadvantages.
Today’s rapid technological advances have considerably changed the way business processes are organised. Integrating electronic invoices (e-invoices) with enterprise resource planning (ERP) systems has become a key strategy in companies looking to improve their operational efficiency and to simplify their financial processes. This integration not only accelerates invoice processing but also significantly improves data accuracy and governance capabilities, marking significant changes in financial transactions.
Electronic structured invoices (e-invoices) are becoming increasingly widespread globally between businesses (B2B) as well as between businesses and government agencies (B2G). E-invoices are gradually replacing old-fashioned paper invoices and PDF invoices. Recent years have seen the member states working hard to implement e-invoicing. Latvia is set to legislate on mandatory e-invoicing in the B2G segment from 2025 and in the B2B segment from 2026.
On 24 May 2024 the Finance Ministry launched a public consultation on proposals for amending the Accounting Act that require invoices to be prepared as structured electronic invoices. Latvian companies invoicing state-funded organisations will have to use structured electronic invoices from 1 January 2025. Other companies will be covered from 2026. This article explores the early proposals for implementing e-invoices in Latvia.
We have informed our MindLink subscribers that in late 2022 the European Commission (EC) published proposals for amending the VAT directive (2006/112/EC) and Council Implementing Regulation (EU) No. 282/2011 to upgrade the EU VAT system and increase its resistance to fraud. Known as ‘VAT in the Digital Age’ (ViDA), the EU VAT reform aims to modernise and simplify the VAT rules for platform economy members by introducing mandatory real-time digital reporting and e-invoicing for all intra-Community B2B transactions. This article explores the latest developments and the potential reforms, focusing on e-invoicing practices.
