Nearly a fifth of voters in the disgraced politician's Welsh constituency supported him being ousted from his Westminster role.
A Tory MP convicted over fake expense claims has been unseated by a petition, triggering a by-election.
Chris Davies was ousted after nearly a fifth (19%) of registered voters in his Brecon and Radnorshire constituency signed a petition to oust him.
The 51-year-old pleaded guilty earlier this year to submitting two false invoices for landscape photographs to decorate his new office.
He was subsequently fined £1,500, ordered to pay £2,500 towards legal costs and told to carry out 50 hours of community service.
The recall petition to decide if he should lose his seat and a by-election be held secured 10,005 signatures, well above the 10% threshold - 5,303 - needed for a recall.
Mr Davies has been MP for the Welsh seat since the 2015 general election, where he beat incumbent Liberal Democrat Roger Williams with the constituency's largest majority since 1983.
In 2017, he secured a majority of more than 8,000 in a constituency where just over 41,000 people voted.
A spokesman for Welsh Labour said: "The recall result is another huge blow to Chris Davies' credibility to serve as member of parliament. This is a mess all of his making.
"The Conservatives must not drag their feet. They should listen to the wishes of the voters of Brecon and Radnorshire, call an immediate by-election and let the people hold them to account."
The leader of the Welsh Liberal Democrats, Jane Dodds, who will stand for the party in the by-election, said: "Thousands of residents across Brecon and Radnorshire have taken the chance to demand better than a Westminster politics that fails to take their concerns seriously.
"Now we have a golden opportunity to do things differently. The clear choice in this by-election is between the Conservatives, whose chaos and infighting is letting our communities down, and a better future for our area with the Welsh Lib Dems."
A spokesman for Plaid Cymru said: "The people of Brecon and Radnorshire have spoken and a by-election will now take place. This will likely be a crucial first test for the incoming Conservative prime minister.
"The two-party status quo in Westminster is breaking down. In last month's European elections, many voters broke the habit of a lifetime by choosing to back pro-People's Vote parties, rather than the Conservatives or Labour.
"Ensuring those of us who want to see a fresh referendum work together, at every possible level, to deliver this aim is crucial. We will explore options for how we can work together, across party lines, to deliver this in the upcoming Brecon and Radnorshire by-election."
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