Document Retention Periods: How Long to Keep Accounting Records in Latvia

A Latvian SIA that moved offices in 2024 threw out three boxes of old invoices during the move — invoices from 2020 and 2021. Six months later, VID opened a desk audit covering exactly those years. Without the source documents, the company could not substantiate EUR 47,000 in claimed expenses. VID disallowed the deductions and assessed additional CIT plus interest. Total cost: roughly EUR 14,000. The boxes would have fit in a single filing cabinet.

Latvian law sets clear minimum retention periods. Here is what you must keep and for how long.

The Standard Rule: 5 Years

Most accounting documents must be retained for five years after the end of the fiscal year to which they relate. This includes:

• Purchase and sales invoices
• Bank statements and payment records
• General ledger and journal entries
• Cash register records
• Inventory records
• Contracts related to transactions within the period
• Annual reports and financial statements (the filed versions)
• Tax declarations and supporting calculations

The five-year period aligns with VID's standard audit limitation period. VID can audit any fiscal year within the past five years from the date of the audit decision. If you destroy documents on day one of year six, you are technically compliant — but cutting it that close is risky if an audit is already in progress.

The Extended Rule: 10 Years

Certain documents require ten-year retention:

• Employment records — contracts, salary calculations, social contribution records, time sheets. These protect both the employer and the employee in disputes over pension contributions or employment history.
• Real estate transaction documents — purchase agreements, valuation reports, construction contracts. The longer period reflects the holding period typical of property assets and the depreciation timelines involved.
• Documents related to EU-funded projects — grant agreements often require retention beyond the standard period, sometimes up to ten years after the final payment.

Digital vs. Physical Storage

Latvian law permits fully digital record-keeping. Scanned copies of paper documents are legally valid if the scanning process ensures accuracy and the digital files are stored securely with appropriate backup.

Practical recommendations:

• Scan all paper documents upon receipt and store in a structured digital archive (by year, by type).
• Use cloud storage with automatic backup — local hard drives fail, and office fires happen.
• Maintain the original paper documents for at least the first year as a precaution, then you may dispose of them if reliable digital copies exist.
• For e-invoices received through Peppol (mandatory for B2G since January 2026), the original is already digital — no scanning needed.

One nuance worth knowing: if VID suspects fraud or tax evasion, the limitation period can be extended beyond five years, and the obligation to produce documents extends accordingly. Companies under investigation may be required to retain documents indefinitely until the matter is resolved.

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