Debtor (debitors)
In Latvian: Debitors
A debtor (debitors) is a person who owes money to the undertaking, for example a client who has not yet paid an invoice. Amounts owed by debtors are receivables, shown on the balance sheet among current assets.
The "Debtors" section of the balance sheet includes trade receivables, amounts owed by related companies, other debtors and prepaid expenses. For each item the amounts due within a year are shown separately from those due later.
If recovery is doubtful, the receivable is carried at its net value, reduced by an allowance for doubtful debts. The Enterprise Income Tax Law brings such a debt into the tax base if it is not recovered within 36 months and none of the statutory exceptions applies.
The two words are easy to mix up: a debtor owes you, a creditor is someone you owe.
Example
On 10 December 2025 SIA "Ozols" issues an invoice for EUR 2,420 due on 9 January 2026. At the year end it is still unpaid, so on the 2025 balance sheet the amount sits under trade receivables.
How Fakts handles it
Fakts lists the unpaid and overdue invoices you issued and lets you send the client a payment reminder.
Legal basis
- Law on Annual Statements and Consolidated Annual Statements, Section 16 likumi.lv
- Law on Annual Statements and Consolidated Annual Statements, Section 24 likumi.lv
- Enterprise Income Tax Law, Section 9 likumi.lv
This explanation is for information and does not replace tax or legal advice. The law in its current consolidated text prevails.