As of 1 July 2021, the State Revenue Service (SRS) of Latvia will issue licenses to outsourced accountants and establish the Public Register of Outsourced Accountants.
To date, there has been no state mechanism for choosing a competent and reliable outsourced accountant. The introduction of licencing of outsourced accountants will ensure a minimum level of professional qualification, promote competition, and improve the quality of services. Additionally, anyone will be able to verify online that the chosen outsourced accountant is licenced.
For a company to be able to outsource accounting services, it will need a licence issued to an accountant with at least three years' experience in accounting and at least a level 4 professional certificate (college education) in accounting, economics, management, or finance.
A transitional period will apply until 1 July 2023. During this time, outsourced accountants will be able to provide their services without a licence, and those accountants who do not meet professional qualifications will be able to improve their education to meet the statutory requirements. Persons who have accounting experience but do not meet education requirements can receive a licence valid until 1 July 2025 after completion of education by submitting documents to SRS. Persons receiving old-age pension or who have six years or less left until retirement and have relevant accounting experience will be able to receive a licence for a period of five years, but not longer than until 1 July 2027.
Moreover, for the licence to be valid, the accountant must submit a civil liability insurance policy to SRS. The licence will be issued for five years, after which it can be renewed. There is a fee of 100 EUR for a licence and renewal.