Preparing and Submitting an SIA Annual Report to VID: a Practical Guide

An annual report in Latvia is one of the most important documents for any SIA, as it reflects the company's financial position and must be submitted to the State Revenue Service (VID). This article summarizes up-to-date information on preparing and submitting the 2025 annual report in the VID Electronic Declaration System (EDS), based on practical guidance.

What is an annual report, who must submit it and when?

An annual report is a financial document that summarizes a company's performance during the reporting year. It must be submitted by all commercial companies, including SIA, for each reporting year.

The annual report is submitted only electronically through the VID EDS system, and it is also forwarded to the Register of Enterprises.

For 2025, the annual report must be submitted by May 31, 2026.

Important: the annual report can be submitted in the EDS system only once - it cannot be amended like other declarations. This means that before submission, the accuracy of the data must be checked very carefully.

Preparing the SIA annual report

1. Reporting period

If the company is newly established, the first reporting period may be:

• shorter than 12 months, or
• longer, but no more than 18 months

For example, if the SIA was established in August 2025, the first report may be prepared up to the end of 2026.

2. Correct allocation of expenses

It is important to ensure that all expenses are allocated to the correct period:

• all 2025 invoices must be recorded, including those received in 2026;
• the service receipt date must be indicated if the invoice was issued later.

This ensures an accurate presentation of the financial result.

3. Data reconciliation and inventory

Before preparing the report, it is necessary to:

• reconcile receivable balances with counterparties;
• reconcile tax liabilities with the data in VID;
• carry out an inventory of stock.

These steps help avoid errors and discrepancies.

4. Closing profit and loss accounts

It is necessary to make sure that:

• all profit and loss accounts (account groups 6, 7 and 8) are closed correctly;
• opening balances at the start of the year are zero.

Simplified annual report for micro-enterprises

If the SIA meets the criteria of a micro-enterprise (does not exceed at least two of the following indicators):

• balance sheet total - 63 000 EUR
• turnover - 125 000 EUR
• employees - up to 5.

It is possible to prepare a simplified annual report without notes, indicating only the essential information (for example, the number of employees).

More important information about preparing the annual report, with images from the pats.lv system, can be viewed here.

Submitting the annual report in VID EDS

XML file upload

The annual report is prepared and submitted as an XML file, which is uploaded to the EDS system.

After the upload:

• the balance sheet and profit or loss statement are filled in automatically;
• all sections must be checked.

Information review

In the EDS system, attention should be paid to:

• basic information;
• balance sheet assets and liabilities;
• profit or loss statement;
• notes (the number of employees must be indicated).

If the number of employees is 0, the system may request additional input.

Document validation

Before submission:

• the “Check and save” function must be used;
• submission is possible only when the status is “Document checked and saved”.

The biggest risk that leads to mistakes is rushing. If there are errors in the report, they cannot be corrected in the EDS system, only in the next annual report.

More information about submitting the annual report to VID, with images from EDS, can be found here.

Practical recommendations

• Prepare the report in good time - do not wait until the deadline
• Carry out a full data check (inventory, reconciliation)
• Make sure that all 2025 transactions are included
• Review the document several times before submission

Conclusions

Preparing and submitting an SIA annual report to VID is a responsible process that requires accuracy and timely action. The key points to remember are:

• deadline - 31.05.2026
• submission only via EDS
• it cannot be amended after submission
• careful data verification is critically important

A correctly prepared annual report not only ensures compliance with regulatory requirements, but also helps the company gain a clear understanding of its financial position.

In closing - we understand that accounting issues may seem complicated, especially when starting to work with a new system. That is why every small business owner (SIA) who registers with pats.lv receives accountant support during the first 30 days. This means that switching to our platform will be not only convenient, but also simple and clear - with the opportunity to get answers to questions, practical assistance and a sense of confidence at every step. We are here to make your day-to-day financial management easier from the very first day.

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