Invoicing in a foreign currency in Latvia: VAT in euro at the ECB rate

A Latvian invoice may state its amounts in any currency, but the VAT payable must be shown in euro at the bookkeeping rate in force at the start of the day of the transaction or of receiving the advance (Section 129(5) of the Latvian VAT Act). The bookkeeping rate is the euro reference rate published by the European Central Bank (Section 7(2) of the Accounting Act); this is the rule as of September 2026.

Updated:

At a glance

Wording on the invoice
PVN summa euro: [amount] EUR (ECB rate 1 EUR = [rate] [currency], [date]) The law requires only that the VAT amount appear in euro, not a form of words. Showing the rate and its date is optional but lets the customer and the tax authority check the figure.
VAT on the invoice
Usual rate
Peppol VAT category
Follows the rate: S for 21%, 12% and 5%
VAT return, supplier
The VAT return is always in euro. The row follows the type of supply and the rate, not the currency.
Legal basis
Latvian VAT Act, Section 129(5); Accounting Act, Section 7

Sample invoice

SIA “Parauga Dizains”
Invoice No. PD-2026/034
Date of issue
21/09/2026
Date of supply
15/09/2026
Due date
05/10/2026
Supplier SIA “Parauga Dizains” Reg. No. 40000000082 VAT No. LV40000000082 Parauga iela 82, Rīga, LV-1082
Customer SIA “Parauga Klients” Reg. No. 40000000002 VAT No. LV40000000002 Parauga iela 2, Jelgava, LV-3001
DescriptionQtyUnitUnit price excl. VATVATAmount excl. VAT
Mobile app interface design1pcs3,200.0021%3,200.00
Prototype testing10h60.0021%600.00

PVN summa euro pārrēķināta pēc ECB euro atsauces kursa, kas spēkā darījuma dienas sākumā (VAT in euro at the ECB reference rate in force at the start of the transaction day)

Total excl. VAT
3,800.00 USD
VAT 21%
798.00 USD
Total due
4,598.00 USD
VAT in euro
684.98 EUR

ECB euro reference rate 1 EUR = 1.1650 USD in force at the start of 15/09/2026. An illustrative rate, not a published one.

A specimen with made-up companies, numbers and amounts.

What the invoice must show

  • Prices and amounts in the chosen currency, e.g. USD.
  • The VAT payable in euro (Section 129(5)). The law does not require other amounts in euro.
  • Recommended: the ECB rate used and its date, so the customer can check the conversion.
  • Every other ordinary detail, including the price without VAT and the VAT rate.

Which rate, and which day

  • The rate is the euro reference rate published by the European Central Bank (Accounting Act, Section 7(2)).
  • It is the one in force at the start of the transaction day (VAT Act, Section 129(5); Accounting Act, Section 7(3)), that is, the latest rate published before that day began. For an advance invoice, the rate in force at the start of the day the advance was received.
  • The transaction day is the time of supply of the goods or services (Sections 31 and 32), not the day of invoicing or payment.
  • For a currency with no ECB rate, use the rate published by a financial information provider recognised on world markets (Section 7(2)).

When the invoice carries no VAT

An export, intra-EU or reverse-charge invoice has no VAT payable, so no euro amount is required on it. In the books the transaction is still converted to euro at the rate in force at the start of the transaction day (Accounting Act, Section 7(3)).

In a Peppol e-invoice

The invoice currency goes in BT-5. To meet Section 129(5) in an e-invoice, also give the VAT accounting currency EUR (BT-6) and the total VAT in accounting currency (BT-111); rule BR-53 requires BT-111 whenever BT-6 is present.

Common mistakes

  • Showing the VAT only in dollars or pounds.
  • Using a bank’s buying or selling rate instead of the ECB euro reference rate.
  • Taking the rate of the invoice date or the payment date instead of the start of the transaction day.
  • Showing the total in euro but not the one figure the law asks for: the VAT in euro.

Frequently asked questions

Can a Latvian company invoice in US dollars?

Yes. The amounts may be in any currency, but the VAT payable must also be shown in euro (Latvian VAT Act, Section 129(5)).

Which exchange rate is used for VAT in Latvia?

The euro reference rate published by the European Central Bank (Accounting Act, Section 7(2)).

Which day’s rate applies?

The rate in force at the start of the transaction day, or for an advance, at the start of the day it was received. Not the invoice date or the payment date.

Must the invoice total also be shown in euro?

The law requires only the VAT payable in euro. You may add the total in euro if you like.

What if the ECB publishes no rate for the currency?

Use the rate published by a financial information provider recognised on world markets (Accounting Act, Section 7(2)).

Issue the invoice with the right VAT statement

Fakts keeps the reason on every 0% line, prints the statement under the lines and files the matching Peppol VAT category. The account is free.

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Sources