On January 26th, 2024, Latvia’s Ministry of Finance unveiled a 4-year plan aimed at curbing the shadow economy and fostering stable economic development. A key component of this initiative involves the implementation of a Continuous Transaction Controls (CTC) regime for B2B transactions.
Scheduled to commence by the end of 2025, the CTC regime is expected to incorporate a technical solution to facilitate the transmission of structured electronic invoices, complemented by real-time reporting mechanisms. The move is expected to enhance the efficiency of tax compliance, particularly the collection of VAT.
Latvia’s CTC plans are currently in their initial stages, and additional details will be unveiled in the future as the country progresses with the implementation plan.
