Annual Report in Latvia: Deadlines, Requirements, and Filing Process

Roughly 180,000 limited liability companies operate in Latvia. Every single one of them must file an annual report — yet each year, thousands miss deadlines, submit incomplete documents, or fail to file altogether, risking fines of up to EUR 600 and, in extreme cases, forced removal from the Commercial Register. The annual report is not just a formality. It is the document that proves your company is alive and solvent.

This guide covers everything you need to know about annual reporting in Latvia as of 2026: who files what, when, and how.

What Exactly Is an Annual Report?

An annual report (gada pārskats) in Latvia is a structured set of financial documents that every registered legal entity must prepare at the end of its fiscal year. It includes, at minimum, a balance sheet, a profit and loss statement, and notes to the financial statements. Larger companies must also prepare a cash flow statement and a statement of changes in equity.

The legal basis sits in the Law on Annual Financial Statements and Consolidated Financial Statements (Gada pārskatu un konsolidēto gada pārskatu likums), which transposes the EU Accounting Directive into Latvian law.

Two institutions receive the report:

UR (Uzņēmumu reģistrs) — the Commercial Register. Filing here makes the report publicly accessible.
VID (Valsts ieņēmumu dienests) — the State Revenue Service. They use it for tax compliance verification.

For most companies, the annual report is filed electronically through the UR portal (info.ur.gov.lv) and the EDS system for VID. Paper filing is essentially obsolete for active businesses.

Company Categories and What They Mean for Your Report

Latvia classifies companies into four categories based on three thresholds. You qualify for a category if you exceed two out of three criteria. This classification determines the scope of your annual report, whether you need an audit, and how much detail your financial statements must contain.

| Category | Balance Sheet Total | Net Revenue | Average Employees | |----------|-------------------|-------------|-------------------| | Micro | ≤ EUR 350,000 | ≤ EUR 700,000 | ≤ 10 | | Small | ≤ EUR 4,000,000 | ≤ EUR 8,000,000 | ≤ 50 | | Medium | ≤ EUR 20,000,000 | ≤ EUR 40,000,000 | ≤ 250 | | Large | Above medium thresholds | Above medium thresholds | > 250 |

Micro companies get the lightest treatment. They can prepare a simplified annual report — essentially a condensed balance sheet and an abbreviated income statement. No notes required beyond the basics. No management report.

Small companies prepare a standard report but may use abbreviated formats for the balance sheet and notes.

Medium and large companies must prepare full financial statements, a management report, and (if they meet audit thresholds) engage a certified auditor. Large companies also need consolidated statements if they control subsidiaries.

In our experience, about 70% of SIAs in Latvia fall into the micro or small category. If your company has under 10 employees and revenue below EUR 700,000, you almost certainly qualify for the simplified format — and you should use it, because it saves both time and accounting fees.

Deadlines: The Dates That Actually Matter

The filing deadline depends on your company category, not on your revenue or the complexity of your business. For companies using the calendar year as their fiscal year:

Micro and small companies: 4 months after fiscal year end — April 30.

Medium and large companies: 7 months after fiscal year end — July 31.

If your fiscal year does not align with the calendar year (some companies choose a different 12-month period), count forward from your fiscal year-end date accordingly.

A common mistake: assuming that all companies have until July 31. If you are a micro or small company, your deadline is April 30, period. VID and UR do not grant automatic extensions just because you asked nicely. Extensions are rare and require documented justification (serious illness, force majeure, and similar circumstances).

The approval process matters too. Before filing, the annual report must be approved by a shareholders' meeting. For a SIA, this means the members (dalībnieki) must formally approve the report — something many single-owner companies forget until the deadline is days away.

What Goes into the Annual Report

The exact contents depend on your category, but here is the general structure:

For Micro Companies (Simplified)

Abbreviated balance sheet
Abbreviated income statement
Minimal notes (accounting policies, significant events)

For Small Companies

Balance sheet
Profit and loss statement
Notes to the financial statements
Optional: management report

For Medium and Large Companies

Balance sheet
Profit and loss statement
Cash flow statement
Statement of changes in equity
Comprehensive notes
Management report
Auditor's report (if audit thresholds are met)

Every report, regardless of size, must include the company name, registration number, registered address, the reporting period, the date of preparation, and the signature of the board (valde) member(s) responsible.

One detail that catches people: the annual report must be prepared in Latvian. If you maintain your accounting records in English or Russian (which many international companies do), the official filing must still be in the state language.

The Filing Process: Step by Step

Step 1: Close the Books

Your accountant finalizes all transactions for the fiscal year, reconciles bank accounts, calculates depreciation, and prepares adjusting entries. For most micro and small companies, this takes two to four weeks after year-end.

Step 2: Prepare Financial Statements

Based on the closed books, the accountant (or the company's financial team) drafts the balance sheet, income statement, and any required notes. Micro companies using the simplified format can often complete this in a few hours.

Step 3: Audit (If Required)

If your company meets two of these three thresholds — balance sheet total exceeding EUR 800,000, net revenue exceeding EUR 1,600,000, or more than 50 employees — a statutory audit is mandatory. The auditor reviews the statements and issues an opinion. Plan for this to take four to eight weeks, so start early.

Step 4: Shareholder Approval

The shareholders' meeting must approve the annual report. For single-member SIAs, this is a written decision by the sole shareholder. For multi-member companies, it requires a proper meeting (or written consent procedure) with a resolution.

Step 5: File with UR

Submit the approved report electronically through the UR portal. You will need an electronic signature (eParaksts or eID) or a signed authorization for your accountant to file on your behalf. The UR charges a state fee for filing — currently EUR 7.11 for electronic submission.

Step 6: File with VID

Submit through the Electronic Declaration System (EDS). The annual income tax declaration (CIT return) is typically filed alongside the annual report, though they are technically separate documents.

Step 7: Retain Your Records

Keep all supporting documentation — ledgers, journals, invoices, bank statements, contracts — for at least five years. Some documents (employment records, real estate transactions) must be retained for ten years. This is not optional. VID can audit you going back five years, and if they suspect fraud, the limitation period extends.

Common Pitfalls That Trigger Problems

Missing the deadline. Late filing triggers fines of up to EUR 600 from VID. The UR can initiate a process to remove your company from the register if the report is more than eight months overdue. Removal is not theoretical — it happens to hundreds of companies each year.

Filing an incomplete report. UR will reject a submission that lacks required elements. You will receive a deficiency notice and have a fixed period to resubmit, but this eats into your timeline and can push you past the deadline.

Wrong category classification. If your company grew past the micro thresholds last year but you still file a simplified report, UR may reject it. Check your classification at each fiscal year-end.

Unsigned report. Every annual report must carry the signature of a board member. An unsigned or improperly signed electronic submission gets bounced.

Language errors. The report must be in Latvian. Submitting in English or Russian will result in rejection.

In our practice at Corvus Accounting & Tax, the most expensive mistake we see is not the late filing itself — it is the cascade of problems that follow. A rejected or late report delays bank account reviews, blocks participation in public procurement, and raises flags with business partners who check the UR database.

What Changed for 2026

Two developments affect annual reporting this year:

E-invoicing for B2G transactions became mandatory from January 2026. If your company does business with government entities, you must issue e-invoices in the Peppol BIS Billing 3.0 format. While this does not directly change the annual report, it affects the underlying accounting records and document flow that feed into the report.

Updated category thresholds. The European Commission periodically adjusts the size thresholds in the Accounting Directive, and Latvia transposes these changes. Verify your classification against the current thresholds — not last year's.

Looking ahead: B2B e-invoicing is planned for 2028, which will fundamentally change how purchase and sales invoices are processed and stored. Companies that prepare now will have a much easier transition.

Making It Manageable: A Practical Checklist

The annual report does not have to be a source of stress. Here is what a well-organized company does:

January: Ensure all December transactions are recorded. Reconcile bank accounts.
February: Calculate depreciation, provisions, and accruals. Draft financial statements.
March: If audit is required, have the auditor begin their review. If not, finalize the draft.
April (first two weeks): Hold the shareholders' meeting. Approve the report.
April (before the 30th): File electronically with UR and VID.

For medium and large companies, shift this timeline by three months — but do not wait until July to start. Companies that begin in May and try to compress everything into two months consistently produce lower-quality reports and pay higher accounting fees due to rush charges.

One final point that deserves emphasis: the annual report is public. Anyone can look up your company on the UR website and read your financial statements. Investors, banks, landlords, potential partners, and competitors all use this information. A clean, timely, well-prepared report is not just a legal obligation — it is a signal that your business is well managed.

Annual Reports: From Closing the Books to Filing With UR

Full preparation or a review of your team's draft -- we handle annual reports for companies across all size categories, in Latvian, English, and Russian. A clean, timely report is not just a legal obligation; it signals to banks, partners, and investors that your company is well managed.

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