SEPA (Single Euro Payments Area)
In Latvian: SEPA (vienotā euro maksājumu telpa)
SEPA is the common set of rules for euro credit transfers and direct debits in the European Union laid down by Regulation (EU) No 260/2012: accounts are identified by IBAN, messages follow the ISO 20022 XML standard, and the remittance field must allow at least 140 characters.
In euro area countries, Latvia included, credit transfers and direct debits have had to meet these requirements since 1 February 2014. Regulation (EU) 2024/886 added instant credit transfers: euro area banks had to receive them from 9 January 2025 and be able to send them from 9 October 2025.
An instant transfer runs at any hour on any calendar day, and the payee's bank must credit the amount within 10 seconds. From 9 October 2025 euro area banks must also check, before a transfer, that the payee name matches the IBAN.
Example
On a Sunday evening SIA "Ozols" pays an Estonian supplier EUR 2,420 by instant transfer. The money is in the supplier's account within seconds, and the invoice number in the remittance field reaches the supplier unchanged.
Legal basis
- Regulation (EU) No 260/2012 eur-lex.europa.eu
- Regulation (EU) 2024/886 (instant payments) eur-lex.europa.eu
This explanation is for information and does not replace tax or legal advice. The law in its current consolidated text prevails.