Most people think an invoice is just a request for payment. In Latvia, it is a legal document — and an incomplete one can cost you the right to deduct PVN. VID rejected approximately EUR 12 million in input PVN claims during 2024 audits, and a significant portion of those rejections stemmed from invoices that were missing one or more mandatory details. Not fraudulent invoices. Incomplete ones.

Getting the format right is not difficult. But it requires knowing exactly what Latvian law demands — and the list is more specific than most business owners expect.

The Mandatory Elements

Latvian law (Cabinet Regulation No. 585, which implements the relevant provisions of the PVN Law) specifies the following elements that must appear on every invoice:

1. Supplier details:

Full legal name of the company or name of the individual
Registration number (or personal ID for sole traders)
Legal address
PVN registration number (if the supplier is PVN-registered)

2. Buyer details:

Full legal name or individual's name
Registration number
Legal/actual address
PVN registration number (if PVN-registered and relevant for the transaction)

3. Invoice identification:

Unique sequential invoice number
Date of issue
Date of supply (if different from the date of issue — this is often overlooked)

4. Description of goods or services:

Clear, specific description of what was sold or provided
Quantity and unit of measurement (for goods)
Unit price (excluding PVN)

5. Financial details:

Total amount excluding PVN
Applicable PVN rate (21%, 12%, 5%, or 0%)
PVN amount
Total amount including PVN
If multiple PVN rates apply, amounts must be broken down by rate

6. Additional elements (when applicable):

Reference to reverse charge mechanism ("PVN maksā preču/pakalpojumu saņēmējs")
Reference to intra-Community supply (for cross-border EU transactions)
Reference to specific exemption provisions if the transaction is PVN-exempt

Miss any of these, and the invoice is technically non-compliant. In practice, VID auditors focus most heavily on the PVN number, the description specificity, and the amount breakdowns.

The Numbering System

Invoice numbers must be unique and sequential within a given series. You can use multiple numbering series (e.g., one series per client, per service type, or per branch), but within each series, the sequence must be unbroken.

Gaps in your numbering sequence raise questions. If invoice #147 is followed by invoice #149, VID may ask what happened to #148. The answer might be innocent — a voided invoice, a software error — but you need to be able to explain it.

A good practice: use a format that incorporates the year and a sequential number. Something like 2026-001, 2026-002, etc. This resets naturally each year and makes it obvious which period the invoice belongs to.

PVN Invoices vs. Non-PVN Invoices

If your company is PVN-registered, every invoice you issue must follow the full PVN invoice requirements above. There is no simplified format for PVN-registered companies, regardless of the invoice amount.

If your company is not PVN-registered, you still must include the supplier and buyer details, invoice number, date, description, and total amount. You simply omit the PVN-specific fields — and you must not show any PVN amount. Charging PVN when you're not registered is illegal, and the amount must be remitted to VID regardless.

For retail transactions under EUR 150 where the buyer does not request a full invoice, a simplified receipt (from a cash register) is sufficient. But if the buyer asks for a full invoice — even for a EUR 10 purchase — you must provide one.

Electronic Invoices

Latvia accepts electronic invoices as legally equivalent to paper invoices, provided they meet the same content requirements and their authenticity and integrity can be verified. In practice, this means a PDF sent by email qualifies, as long as it contains all mandatory elements.

There is a growing push toward structured e-invoicing (machine-readable formats like UBL or Peppol), particularly for transactions with government entities. As of 2026, e-invoicing is mandatory for public procurement above certain thresholds. For private-sector transactions, it remains optional but increasingly common.

If you use accounting software like Horizon or Tildes Jumis, the invoice templates built into the system already include all mandatory fields. The risk of missing a required element drops significantly when you're not creating invoices manually in Word or Excel.

Common Mistakes and Their Consequences

Vague descriptions. "Services — EUR 5,000" is not sufficient. VID expects enough detail to understand what was actually provided. "Marketing consulting services for Q1 2026 per contract dated January 15, 2026" is better. The description doesn't need to be exhaustive, but it must be specific enough for an auditor to understand the nature of the transaction.

Missing PVN registration numbers. If your supplier is PVN-registered and the invoice doesn't show their PVN number, your right to deduct input PVN on that purchase is at risk. Always verify the supplier's PVN status before accepting an invoice — especially from new suppliers.

Incorrect PVN calculations. Rounding errors, wrong rates, or applying PVN to exempt transactions. These seem minor until an audit aggregates dozens of small errors into a material discrepancy.

Invoices in foreign currency without EUR equivalent. If you invoice in USD or GBP, the invoice must also show the EUR equivalent using the ECB reference rate on the transaction date. The PVN amount must be stated in EUR.

Backdated invoices. Issuing an invoice dated January 31 for a service delivered in March is a red flag. The invoice date should correspond to the date of supply or the date of issue — not an arbitrary date chosen for tax period optimization.

In our experience, the simplest safeguard is using accounting software with built-in invoice templates. The software forces you to fill in every required field before generating the document. Manual invoices — especially those created in spreadsheets — are where most errors originate.

Invoice Errors Are Audit Magnets -- Get Them Right

A single missing field on an invoice can invalidate your PVN deduction and trigger a VID review of the entire period. We set up compliant invoicing templates, review your existing practices, and handle PVN declarations so every document meets Latvian requirements from day one.

Set up compliant invoicing →

How to Issue an Invoice in Latvia: Mandatory Details and Format