Accounting services in Latvia

Who this service is for

The service is for companies registered in Latvia that do not want to employ an accountant in-house. Two situations are the most common. The first is a Latvian company whose transaction volume has outgrown what the owner can process alone. The second is a company owned from abroad - a subsidiary, or a small entity set up to employ people in Latvia - where nobody on the team reads Latvian tax law.

In both cases the company keeps its full finance function: source documents, tax returns, payroll and the annual report. What it does not keep is the recruitment, the software licences and the question of who covers the work during holidays.

What Latvian law requires of an accountant

In Latvia, providing accounting to another company is a regulated activity. The Accounting Law uses the term outsourced accountant and sets three requirements.

• A licence. An outsourced accountant must hold a licence issued by the State Revenue Service (SRS). The SRS keeps a public register of licensed outsourced accountants, so any provider can be checked in under a minute. The licence number of SMAIDA Solutions, SIA is AGL0003786, effective from 13 August 2026.
• Qualification. The law sets a minimum level of education in accounting, economics, management or finance. Professional qualifications go beyond that minimum - ACCA is an internationally recognised one.
• Professional indemnity insurance. Cover is mandatory, and the minimum amount is linked to the client’s turnover. If an error by the provider causes the company a loss, the source of cover is settled in advance.

An unlicensed provider may be cheaper. But responsibility for the company’s accounting stays with its director, and it is the director who answers to the SRS. A licensed accountant takes part of that risk on, under a liability defined by law and backed by insurance.

What the service covers

• Bookkeeping - invoices, receipts, expense claims and bank statements processed and entered into the accounting records. Documents can be submitted electronically; paper documents are digitised.
• VAT returns - prepared and filed in the Electronic Declaration System, including input VAT checks and the reporting of transactions with other EU member states.
• Payroll - gross-to-net calculation, state social insurance contributions, personal income tax, holiday and sick pay, and the employer’s report.
• Annual report - prepared under the Law on Annual Financial Statements and Consolidated Financial Statements and filed by the statutory deadline.
• Correspondence with the State Revenue Service - filings, replies to SRS requests, and representation on day-to-day matters.
• Management reports - profit and loss, cash flow and a debtors list, at whatever frequency the company needs for decisions, not once a year.

If the company needs more than record-keeping - budgets, forecasts, figures prepared for investors - that is covered by a separate fractional CFO service. Connecting systems and moving data between them is covered by business automation.

The monthly cycle and the dates that matter

Accounting is not a one-off task. It repeats every month in the same rhythm.

• During the month. Documents are handed over as they arise. There is no need to collect them in a folder until month end - the sooner a document is processed, the sooner the reports reflect the real position.
• Early in the month. The previous month is closed, bank statements are reconciled and payroll is calculated.
• By the 23rd of the following month. Taxes for the reporting month are paid into the single tax account.
• At month end. Management reports, where these have been agreed.

The rhythm is documented, so it does not depend on one person’s memory and does not stop during holidays.

Exact VAT, payroll tax and corporate income tax deadlines are covered separately - see the Latvia Tax and Filing Calendar 2026.

VAT registration and returns

A company must register for VAT in Latvia once the value of its taxable supplies exceeds €50,000 in a calendar year. The standard rate is 21%. Registration below the threshold is voluntary, and it often makes sense for a company whose customers are VAT-registered businesses.

For a foreign-owned company the threshold is rarely the only question. Cross-border supplies within the EU, the reverse charge and the place-of-supply rules decide what actually appears on the return. These are checked before filing, not after a query arrives from the SRS.

Payroll

Payroll in Latvia means gross-to-net calculation, state social insurance contributions, personal income tax, and the employer’s monthly report. Its deadlines follow the same 23rd of the month as other taxes.

Payroll is the most common reason a foreign company needs an accountant in Latvia at all, often before it has any other activity here. It is covered in detail on the payroll services in Latvia page. To work out net pay from gross, the site has a free salary calculator with 2026 rates.

The annual report

Every company registered in Latvia files an annual report under the Law on Annual Financial Statements and Consolidated Financial Statements. The deadline depends on the size of the company.

• Micro and small companies - within five months of the end of the financial year. For a financial year that matches the calendar year, that is 31 May.
• Medium and large companies - within seven months, so 31 July for a calendar year.

Where the monthly work has been done properly, the annual report is a closing exercise rather than a reconstruction. Most of the effort companies spend on it in spring is the cost of a year of loose record-keeping.

E-invoicing: what applies now and what comes later

There is some confusion in the market on this, so precisely:

In transactions with government and municipal institutions, a structured electronic invoice has been mandatory since 1 January 2025. A company that supplies goods or services to the public sector is subject to the requirement today.

Between businesses, the obligation was originally set to begin in 2026. On 5 June 2025 the Saeima adopted amendments to the Accounting Law and extended the deadline by two years, to 1 January 2028.

The practical conclusion: there is no rush, but there is time to prepare without pressure.

Working with a foreign parent company

A Latvian subsidiary usually has two audiences for its numbers. The State Revenue Service requires them in a Latvian format; the parent company needs them in its own. Both are served from the same records.

• Language. Correspondence, reports and explanations are available in English. Statutory filings are made in Latvian, because the law requires it.
• Group reporting. Monthly figures can be delivered in the format the parent uses, on the group’s timetable rather than the statutory one.
• Documents. Invoices and contracts in English are normal and do not need translating for accounting purposes.
• One point of contact. Questions from the group’s finance team are answered directly, without being routed through the local director.

Outsourcing compared with an in-house accountant

The comparison only makes sense if all costs are counted on both sides.

An in-house accountant means a gross salary, state social insurance contributions, a workplace, an accounting software licence, training, and cover during holidays and sickness. In a small company the workload is often not full-time, so a full salary is paid for part of a role.

Outsourcing means paying for actual volume. Software, keeping qualifications current and cover during absence sit with the provider.

• Cost base: salary, taxes and a workplace, against a fee for volume.
• Software: a company cost, against included in the service.
• Holidays and sickness: the company’s problem, against the provider’s.
• Liability for an error: the company’s, against defined by law and insured.

Outsourcing is not the right choice for every company - see the section on who it does not suit.

Where automation fits

Automation does not replace the accountant. It takes over the repetitive part: reading documents, classifying transactions, moving data between systems, and the checks where a tired person makes mistakes.

The line is drawn clearly. A licensed accountant makes the judgement and answers for it. Automation prepares, a person decides. That applies to classifying disputed transactions, to applying tax rules, and to preparing the annual report.

Moving from another accountant

The transition is the most common reason companies postpone changing accountant. In practice it works like this.

1. A conversation and a scope assessment. Transaction volume, number of employees, VAT status and the system in use are established.
2. Taking over documents and balances. The accounting records and balances are received from the previous accountant. Balances are checked, not accepted blindly.
3. Reconciling discrepancies. Where differences are found, they are recorded and agreed before work starts, rather than discovered at year end.
4. Starting work. The service begins with the next reporting period, with no gap in filings.

The best moment to move is the start of a financial year or quarter, but a mid-year transition is possible.

What the company provides

Outsourcing does not mean the company is left with no obligations. For the accounts to be accurate and the deadlines met, the company needs to provide:

• Documents on time. A late document means either an inaccurate return or a correction afterwards.
• Access to bank statements. Usually through an automatic data feed; where that is not available, statements are provided manually.
• Notice of employee changes. Hires, leavers, holidays and sick leave have to be reported before payroll is run.
• Clarity on unclear transactions. Where the substance of a transaction cannot be read from the document, it has to be explained. An accountant must not guess.
• A named contact. One person in the company with whom questions are settled.

These points are set out in the engagement contract, so that there is no argument later about who had undertaken what.

Who this service does not suit

• Companies that need an accountant physically in the office every day.
• Companies whose volume requires a full-time team of several people.
• Companies looking for a provider who will post documents without checking them.

Pricing

Prices start at €149 per month and depend on volume - the number of source documents, the number of employees and VAT status. A precise quote follows a conversation, with no obligation. See the price comparison →

Frequently asked questions

Does an accountant in Latvia have to be licensed?

Yes, where accounting is provided to another company as a service. The Accounting Law requires an outsourced accountant to hold a State Revenue Service licence, a minimum level of education and professional indemnity insurance. The licence can be checked in the SRS public register.

Is SMAIDA a licensed outsourced accountant?

Yes. SMAIDA Solutions, SIA holds State Revenue Service licence No. AGL0003786, effective from 13 August 2026. The licence can be verified in the SRS public register of outsourced accountants.

Can the service run in English?

Yes. Correspondence, reports and explanations are available in English. Statutory filings are submitted in Latvian, as the law requires.

When must a company register for VAT in Latvia?

Once the value of taxable supplies exceeds €50,000 in a calendar year. Voluntary registration below the threshold is also possible. The standard VAT rate is 21%.

When is the annual report due?

Micro and small companies file within five months of the end of the financial year, which is 31 May for a calendar year. Medium and large companies have seven months, so 31 July.

Are e-invoices mandatory yet?

In transactions with government and municipal institutions, yes, since 1 January 2025. Between businesses the obligation takes effect on 1 January 2028.

How complicated is changing accountant?

Taking over documents and balances is part of the service. The company needs to provide access to the previous accounting records and to inform the previous provider.

When can the service start?

The full service is available from 1 September 2026. A conversation and a booking can be arranged now.