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E-Invoicing In Estonia, Lithuania, And Latvia: Recent Developments

Written by Kevin Little

June 25, 2023

European Invoicing

Estonia, Lithuania & Latvia: New e-Invoicing Advancements

Estonia, Lithuania, and Latvia have implemented their new e-invoicing advancements in the first quarter of 2019. E-invoicing is being improved in the Baltic nations at various stages of development, particularly in the context of public-private partnerships (PPPs) between public authorities and their suppliers. They are dedicated to this method of guaranteeing interoperability in e-Procurement development to maintain their competitive advantage, following the lead of the rest of Europe. What are the most recent enhancements to e-invoicing in these nations, if any?

In response to the judgement, the Baltic nations have made significant strides forward in strengthening their bilateral trade relations, albeit at varying rates.

Estonia Has Already E-Invoicing Compulsory For Business-To-Business Transactions

Back in July 2019, e-invoicing is required in all business-to-business transactions. As a result, suppliers across Estonian public administrations are required to provide electronic invoices in accordance with one of the following international standards:

The UBL and UN/CEFACT standards, which were authorised by Directive 2014/55/EU, are examples of European standards.

It is based on the XML schema, according to the national standard EVS 923: 2014 / AC: 2017.

Suppliers in Estonia must send e-invoices directly to the public administration that has contracted the service, as opposed to countries where a central platform or a hub is used (as in the case of Spain with Facturae or France with Chorus Pro), through which invoices are sent and distributed directly to the corresponding public institution. Suppliers can choose between different private e-invoicing providers.

In Estonia, all organisations that bill electronically are required to be registered with the Center for Registries and Information Systems (RIK), which is under the jurisdiction of the Ministry of Justice. The RIK is in charge of managing all of the information necessary for sending invoices electronically to the firms and organisations that have registered with it. In Estonia, e-invoicing does not need the use of an electronic signature.

Lithuania Has Become A Member Of The PEPPOL Network

Lithuania has made a significant step forward in interoperability by becoming a member of the PEPPOL network on April 18, 2019. As part of its support for the PEPPOL network, the Baltic state also supports the PEPPOL UBL (Universal Business Language), a variation of XML that has evolved into a common and interoperable standard that is critical to the growth of cross-border electronic procurement.

Lithuania made business-to-business e-invoicing mandatory in July 2017, and less than two years later, the PEPPOL standard was implemented, despite the fact that the previously used national XML format is still recognised.

With the addition of the PEPPOL network, Lithuania’s public platform eSaskaita, which serves as a central hub for the sending and receiving of e-invoices, has become even more efficient. Lithuania has likewise advanced to the point of implementing electronic tax compliance.

This project is framed inside the smart tax administration system known as i.MAS and consists of three subsystems:

VAZ: A monthly report on the number of consignment notes and other goods transport papers that have been printed.

SAF: A monthly report that contains information about bills that have been issued and received.

SAFT (Secure Audit File Transfer): An electronic tax audit file that must be supplied during the audit if requested by the tax authorities.

Latvia has made significant strides toward complying with the EU Directive on Business-to-Business e-invoicing

The Cabinet of Ministers of Latvia, despite the fact that it is the only Baltic country that has not yet implemented mandatory business-to-business invoicing, has started the process of legislating in order to comply with European Directive 2014/55/EU. To this end, on April 9, 2019, It is required that public administrations accept electronic invoices in the PEPPOL BIS billing 3.0 format from vendors who wish to invoice electronically under Section 154 of the Public Administrations Act.

Three ways are available for submitting electronic invoices:

  1. Through the use of the “e-adrese” communication instrument for communicating with Latvian public administrations, which is only available to businesses that are registered in the nation.
  2. Via Email
  3. Any alternative method that has been previously agreed upon with the public administration is acceptable.

In order to communicate with the central government, a state portal known as ePakalpojumi.lv is available.

Solutions On A Global Scale

Whatever the newest innovative features in electronic invoicing are, it is handy to have an e-invoicing solution provider with worldwide capacity, which allows you to swiftly react to the latest news from each nation you do business with. It might be difficult for multinational corporations to manage their e-invoicing with Public Administrations of the European Union while adhering to national standards in each country.

a worldwide electronic communications platform with e-Invoicing and VAT Compliance capabilities has been created by Symtrax to make this scenario easier to manage. This technology enables the transmission of compliant electronic invoices to any public administration from a single point of contact.


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