Glossary

IBAN

In Latvian: IBAN

Payments Updated

An IBAN is an international payment account number identifier that unambiguously identifies an individual payment account in a Member State, with its elements specified by the International Organisation for Standardisation (ISO). In EU euro credit transfers and direct debits the account is identified by the IBAN alone.

An account opened in Latvia has an IBAN beginning with the country code LV. Regulation (EU) No 260/2012 makes the IBAN the account identifier for SEPA euro payments and bars banks from requiring customers to add a BIC.

Since 9 October 2025 banks in the euro area must check, before a transfer, whether the payee name matches the IBAN given and warn the payer if it does not. On an e-invoice that asks for a credit transfer the payment account identifier is mandatory (Peppol rule BR-50).

Example

SIA "Ozols" puts its IBAN on a EUR 1,210 invoice. Before the payment goes out, the client's bank checks that the account belongs to SIA "Ozols", and only then does the money leave for the account on the invoice.

How Fakts handles it

Fakts prints the IBAN and SWIFT/BIC from your company profile on the invoice and puts the IBAN into the payment details of the e-invoice XML.

Legal basis

This explanation is for information and does not replace tax or legal advice. The law in its current consolidated text prevails.