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Latvia · Agentic SaaS development

SaaS Development for Latvia: Billing, VAT and E-Invoicing

From 1 January 2028, structured e-invoices become mandatory for all businesses in B2B transactions in Latvia, according to the State Revenue Service. A Latvian SaaS company billing local business customers will need invoices as XML to the national standard and PEPPOL BIS Billing 3.0, not a PDF. Add a 21% standard VAT rate, customers who pay by card and instant payment, and EU switching rules for cloud services, and the commercial plumbing needs real design.

Curiosive, a studio in Ankara, Türkiye, builds SaaS products with AI coding agents under senior engineer review. The agents write the CRUD screens, admin views, migrations and tests around a core that engineers design themselves: the multi-tenant data model, tenant isolation, plan and entitlement logic and the billing webhooks, where one mistake leaks data or charges the wrong amount. You keep the code and the accounts from the first commit.

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E-invoicing for SaaS billing in Latvia: the 2025 to 2028 timeline

The State Revenue Service (VID) has phased the mandate in. Since 1 January 2025, structured e-invoices have been mandatory in transactions with state and municipal institutions. Since 1 January 2026, data from those invoices must reach VID within five working days. From 1 January 2028 they are mandatory for all businesses in B2B transactions; until then B2B use is voluntary. The invoice is XML following the national standard and PEPPOL BIS Billing 3.0, sent through the state e-Adrese on Latvija.gov.lv, accounting software connected to PEPPOL or VID's EDS API, or an e-invoice service provider, under Cabinet Regulation No. 749 of 9 December 2025. VID uses the data to pre-fill parts of the PVN 1 VAT return annex. For business customers elsewhere in the EU, Directive (EU) 2025/516 (ViDA) brings e-invoices to the European standard from 1 July 2030.

VAT for SaaS companies in Latvia selling across the EU

Section 41 of Latvia's Value Added Tax Law, in the version in force from 1 January 2026, sets a 21% standard rate with reduced rates of 12% and 5%. Under Section 59(1), a Latvian business can stay unregistered while its domestic supplies in a calendar year do not exceed EUR 50,000. Business customers in another EU country usually account for VAT themselves under the reverse charge, although there are important exceptions. Telecommunications, broadcasting and electronic services sold to consumers are taxed in the customer's country, though below a EUR 10,000 threshold they may be taxed where the seller is established, and the One Stop Shop lets a seller declare and pay that VAT through one EU country. The product therefore stores each customer's country and VAT number from the first paid plan.

Payments, instant transfers and SCA for customers in Latvia

Latvijas Banka's autumn 2026 Payment radar found that non-cash payments reached a record 81% of payments in August 2026. The average adult made 8.2 card payments and 4.8 online payments a week, against 3.1 in cash, and 41% of the population use instant payments, so a subscription product should plan for card billing plus an instant payment route for annual or invoiced plans. Card checkout sits under the PSD2 strong customer authentication standards. A payment service provider may skip authentication for a remote payment of up to EUR 30 only while the payer's payments since the last authentication stay within a cumulative EUR 100 or five consecutive transactions, so checkout and upgrade flows must handle a challenge. PSD3 and the Payment Services Regulation were listed as close to adoption on 20 September 2026, with formal adoption still pending.

Cybersecurity law and Data Act switching duties for SaaS in Latvia

The National Cybersecurity Law has been in force since 1 September 2024, and its current consolidated version applies from 1 October 2026. Section 20 classes large cloud computing, data centre and content delivery network providers as essential service providers, and Section 34 requires an early warning of a significant cyber incident within 24 hours and an initial report within 72 hours. The National Cybersecurity Centre, within the Ministry of Defence, is the competent authority. The EU Data Act, applied since 12 September 2025, adds switching duties: a written contract, a notice period of no more than two months, a transitional period of no more than 30 calendar days, and only reduced switching charges until 12 January 2027, then none. A service mostly custom-built for one customer and not offered at broad commercial scale is exempt from parts of this, and the customer must be told which parts before the contract is concluded.

What agents build in a SaaS product and what engineers design

Engineers decide how tenants are separated before any screen exists, because every query depends on that choice, and they design the plan and entitlement logic and every payment path. Billing webhooks are idempotent, so an event the payment provider redelivers is never applied twice. Then coding agents generate the list and form screens, admin views, migrations and test suites, and each diff is read by a senior engineer before merge. Comparable work includes Reveal Software (reveal.software), video onboarding for SaaS, built for a Romanian client on Hono, Drizzle ORM and PostgreSQL, and PicKey (pickey.ai), a visual password manager with subscription billing. Ankara keeps Latvian time in summer and runs one hour ahead in winter, so review conversations happen inside a shared working day.

Proof

Published project examples

Reveal Software

Reveal Software

Release Coach AI

Release Coach AI

Inspire Film

Inspire Film

Poppin

Poppin

Zing Coach

Zing Coach

ChurchBee

ChurchBee

AI-accelerated development
from$2,000
per month

Senior engineers building your product with AI coding agents: web, mobile, SaaS or browser extension, reviewed before anything ships.

  • Web, mobile, SaaS and browser extensions
  • AI-assisted delivery under senior engineer review
  • Scope and capacity agreed in writing, renews monthly

AI-accelerated development, billed monthly. We confirm scope, capacity and start date in writing before checkout.

Questions

The things people ask before starting.

When does B2B e-invoicing become mandatory in Latvia?

On 1 January 2028, according to the State Revenue Service, when structured e-invoices become mandatory for all businesses in B2B transactions. Until then B2B use is voluntary, but e-invoices with state and municipal institutions have been mandatory since 1 January 2025, so a SaaS selling to the public sector needs the PEPPOL format now.

What is the VAT rate in Latvia for SaaS companies?

Latvia's standard VAT rate is 21%, and the VAT Law also sets reduced rates of 12% and 5%. B2B customers in other EU countries usually self-account under the reverse charge, while electronic services sold to consumers are mostly taxed in the customer's country. Which treatment fits your product is worth confirming with an accountant.

Can our SaaS checkout avoid strong customer authentication for small payments in Latvia?

Sometimes, at the payment provider's discretion. The PSD2 standards let a payment service provider skip it for a remote payment of up to EUR 30, but only while the payer's remote payments since the last authentication stay within EUR 100 in total or five consecutive transactions. Checkout and upgrade flows therefore need to handle a challenge whenever the provider asks.

How much does it cost to build a SaaS MVP for the Latvian market?

Work runs as AI-accelerated development, starting from $2,000 per month, with scope agreed in writing. Both are US dollar starting points rather than quotes, with scope and budget agreed in writing after a discovery call.

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How it starts

What happens after you write to us.

  1. 01

    You describe the product

    One paragraph on what you are building, roughly when you need it, and who it is for. No brief, no form with fifteen fields.

  2. 02

    You get a reply within a day

    From the engineer who would do the work, not a sales team. If we are not the right fit we say so, and where possible we point you somewhere better.

  3. 03

    You get a scoped plan

    Scope, price and timeline in writing before anything is committed. You decide with the numbers in front of you.

No long contract to begin, no lock-in to our tooling, and the code is yours from the first commit.

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Looking for an engineering partner for the long haul?

A short note about the product, the timeline and who it is for is enough to start. You will hear back from the engineer who would do the work, not a sales team.

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Ankara / Türkiye · Working across European and US time zones