Implementing e-invoices in your company: where to start?

In brief:

• Implementing e-invoicing begins with evaluating requirements and understanding how invoices are currently prepared, received, and processed within your company.
• The choice of solution depends on the company's needs: options range from free e-invoicing functionality on the Latvija.gov.lv portal to solutions integrated into accounting software and offerings from specialized service providers.
• To ensure e-invoices streamline your daily operations, it is important to evaluate not only their transmission and receipt but also the data flow within your accounting processes.
• Before transitioning to the new system, it is recommended to test the chosen solution in practice and establish a clear procedure for invoice processing within the company.

Implementing e-invoicing in a company starts not with choosing new software, but with understanding how the current invoicing process works and what changes will be necessary. For one company, the ability to prepare and send a few e-invoices per month will be sufficient, while for another, the priority will be ensuring that a large volume of invoices enters the accounting system without unnecessary manual processing.

Available solutions also vary. E-invoices can be prepared free of charge on the Latvija.gov.lv portal, by using the features of accounting software, or by choosing a specialized e-invoicing service provider. Therefore, before making a decision, it is worth evaluating both the company's current processes and how each of these options would simplify daily work.

In this article, we will look at how to prepare for the transition to e-invoicing, how to compare available solutions, and which issues need to be resolved to ensure the new system works effectively in daily operations.

What e-invoicing requirements apply to your company?

The first step is to understand which transactions require e-invoices and what obligations the company must follow. This is important because the implementation of e-invoicing in Latvia is taking place gradually, and requirements vary depending on the business partner and the type of transaction.

From January 1, 2025, structured e-invoices are mandatory for transactions with state and municipal institutions. From January 1, 2026, for certain transactions, e-invoice data must be submitted to the State Revenue Service (SRS) within five business days. The general obligation to use structured e-invoices in business-to-business (B2B) transactions is scheduled for January 1, 2028. Until then, companies may use e-invoices in B2B transactions on a voluntary basis. Before implementing a specific process, however, you should verify whether any special conditions or exemptions apply to the relevant transactions.

Up-to-date information on requirements and implementation deadlines is available on the SRS website.

How will e-invoices fit into your current workflow?

Preparing and sending an e-invoice is only part of the overall process. It is equally important to understand how invoice data reaches the accounting department, who verifies it, and how the approval of received invoices is organized.

For example, a company might currently prepare sales invoices in accounting software, save them as PDFs, and email them to clients. Meanwhile, supplier invoices arrive at various email addresses, and the accountant must compile and enter them into the system. By transitioning to a structured e-invoicing workflow, these processes can change: invoice data can be transferred between systems automatically, reducing the need for manual re-entry.

However, such a result is not automatically guaranteed by the e-invoice format itself. It depends on the chosen solution and whether it is connected to the company's accounting system. Therefore, it is worth first evaluating three questions: 

• where sales invoices are prepared; 
• how supplier invoices are received and processed;
• in which tasks employees currently have to enter or copy the same information.

Such an assessment will help determine whether the company primarily needs a simple tool for sending and receiving e-invoices or a solution that allows for managing the entire invoice workflow, from creation to bookkeeping.

What e-invoice solutions are available?

You do not necessarily need to purchase new accounting software for e-invoice processing. The choice depends on the volume of invoices, your current software, and how much of the process the company wishes to automate.

Free option - e-invoice functionality on the Latvija.gov.lv portal

For companies that want to start using e-invoices without paying for specialized services, e-invoice functionality is available on the portal Latvija.gov.lv.

It allows you to manually prepare structured e-invoices, send and receive them, track their delivery status, and ensure e-invoice data is submitted to the SRS. You can also use a pre-prepared XML file if the company already has one. The portal is particularly useful for companies that do not have suitable software or have a low volume of invoices.

This solution also has its limitations. If invoices need to be prepared frequently or if multiple employees are involved in their processing, manual work on the portal may take more time than an integrated solution. Furthermore, the company must still ensure that invoice information is reflected in its accounting records.

E-invoices in accounting software

For companies that already prepare invoices in accounting software, it is worth first finding out what e-invoice options are available within it. Depending on the software and its integrations, it may be possible to create and send invoices directly from the system or to connect a separate e-invoice service.

The main advantage of this approach is the ability to maintain your familiar work environment and reduce redundant data entry. However, solutions vary, so you should determine whether it is possible to both send and receive e-invoices, how data exchange with the SRS is handled, and whether the information from received invoices is available in your accounting records.

For Jumis clients, the following is available for e-invoice processing: Jumis Envoice - a solution for sending and receiving e-invoices. When evaluating any solution, it is essential to ensure it meets the specific needs and operational processes of your company.

Specialized e-invoice service providers

Another option is to use a specialized e-invoice service provider or operator. Such services ensure the creation, sending, and receiving of structured e-invoices, and depending on the offer, may also include integrations with accounting software and other automation features.

The SRS publishes a list of e-invoice service providers which helps you get acquainted with the solutions available in Latvia. For example, it includes Telema, Horizon, dots.365 and Fitek. This list is for informational purposes, so before making a choice, it is worth contacting service providers to determine whether a specific offer meets your company's needs.

When comparing solutions, it is important to evaluate not only the price but also how they fit into the company's daily operations. You should clarify whether the fee is calculated per invoice or per a set period, whether integration costs are separate, how received invoices are processed, and what support is available in case of technical issues.

For a company with a low volume of invoices, a free solution may be the most suitable. However, if there are many invoices and their data needs to be regularly processed in an accounting system, the investment in an integrated solution can pay off through saved working time.

How to prepare the company for the transition?

Once the most suitable solution has been chosen, the next step is to agree on how the new procedure will work in practice. Even if the sending and receiving of e-invoices happen automatically, the company still needs to define responsibilities for checking, approving, and booking the invoices.

For example, in a company where sales invoices are prepared by project managers but accounting is handled by an outsourced accountant, it must be agreed upon who ensures the invoice information is correct, who checks its delivery status, and how the data reaches the accountant. If these issues remain unresolved, a new technical solution alone will not eliminate confusion in the workflow.

It is equally important to anticipate situations where an invoice is not delivered, the recipient rejects it, or the information provided needs to be clarified. Employees must know where to check the status and who to contact if a problem arises. Implementing this procedure does not require an extensive internal policy. Often, a brief description of the process, defining the sequence of actions and the responsible persons, is sufficient.

Test how the process works in practice

Before implementing e-invoice circulation for all company transactions, it is useful to test it with a few invoices. This allows you to verify not only the technical capabilities but also whether the new process is understood by everyone involved.

During the testing phase, pay attention to whether the necessary information is correctly indicated on the invoice, whether it is delivered to the recipient, and whether it is possible to review its status. If integration with accounting software is planned, also check how the data of the received or sent invoice is reflected in the system and whether additional manual processing is required.

Organizational issues may also come to light at this stage. For example, it may be technically possible to receive an invoice, but it is unclear who approves it or forwards it to the accountant. Such shortcomings are easier to address before rolling out the new procedure across the entire company. After the trial period, it is possible to refine the process, update internal instructions, and agree on transitioning to e-invoice circulation on a larger scale.

Implementing e-invoices for accounting service providers

For accounting service providers, the implementation of e-invoices means not only changes in their own work but also the need to help clients adapt to the new procedure. Since clients may use different accounting software and document flow processes, it is worth planning the transition well in advance.

Implementation can be organized in several consecutive steps:

1. Assess the clients' situation. Gather information on the accounting software used by clients, their invoice volume, and current invoice processing procedures. This will help determine which clients require changes and which are already prepared to use e-invoices.
2. Select the most appropriate solutions. Verify whether the software used by clients supports the preparation, sending, and receiving of e-invoices. If necessary, compare alternatives, including the free solution on the Latvija.gov.lv portal and offers from specialized service providers.
3. Agree on the document processing procedure. Determine with each client how invoices will reach the accountant, who will be responsible for sending and receiving them, and how data transfer for accounting purposes will be organized. It is particularly important to agree on responsibilities in situations where an invoice has not been received or an error is identified.
4. Test the process in practice. Before fully implementing the new procedure, test the e-invoice workflow with a few clients. Verify that invoice data is received correctly, that it flows conveniently into the accounting system, and that there is a clear plan for handling any issues.
5. Prepare instructions for clients and inform them of the changes. Briefly explain what will change in the preparation and sending of invoices, what actions the client's staff must take, and who to contact in case of uncertainty.

This approach allows for the gradual implementation of e-invoices, enabling the timely identification of problems and avoiding a situation where each client uses a different document processing workflow that is inconvenient for the accounting firm. The more clearly responsibilities are divided and data exchange is organized, the easier it is to integrate e-invoices into daily operations.

Frequently Asked Questions

Is paid software mandatory for implementing e-invoices?

No. A company can use the free e-invoice functionality on the Latvija.gov.lv portal. A paid solution may be more suitable if integration with accounting software, greater automation, or more convenient processing of large volumes of invoices is required.

Is a PDF invoice sent via email an e-invoice?

No, not in the sense of a structured e-invoice. A structured e-invoice is prepared in a machine-readable format, such as XML, which allows systems to automatically process the data contained within it. A PDF file is intended primarily for human reading, and sending it via email does not in itself ensure a structured e-invoice workflow. Read more about the difference between an e-invoice and a PDF here: “E-invoice vs. PDF invoice: what is the difference?”

Is a company required to change its accounting software?

Not necessarily. First, it is worth determining whether the existing software supports e-invoice workflows or can be connected to an appropriate solution. If the volume of invoices is small, the e-invoice functionality available on the Latvija.gov.lv portal may be sufficient.

Is e-invoice data transmitted to the SRS automatically?

This depends on the solution used and the invoice delivery channel. For example, e-invoices prepared on the Latvija.gov.lv portal are automatically submitted to the State Revenue Service (VID). When choosing a different solution, you must ensure that it supports data submission in accordance with applicable requirements and verify whether any additional steps are required by your company.