Estonia has been at the forefront of digital innovation, and its approach to e-invoicing reflects this commitment. Since 2017, public sector entities have been mandated to accept electronic invoices, and by 2019, it became compulsory for suppliers to issue e-invoices when transacting with the public sector.
In a significant development, the Estonian Parliament approved amendments to the Accounting Act on September 18, 2024, introducing a phased approach to e-invoicing adoption. Starting July 1, 2025, businesses registered as e-invoice recipients in the Estonian Commercial Register can require their suppliers to submit structured electronic invoices. This “buyer’s right” marks a pivotal step towards broader e-invoicing implementation.
The updated framework aims to harmonize e-invoicing practices by adopting the European standard EN 16931 as the default format, unless an alternative is mutually agreed upon by the transacting parties. This move simplifies the invoicing process and aligns Estonia with EU-wide digital initiatives.
To facilitate this transition, the Estonian government offers tools like e-Financials, a free platform for businesses to send e-invoices to public sector entities. Additionally, the decentralized nature of Estonia’s e-invoicing system allows businesses to choose from various service providers, including those connected to the Peppol network, ensuring flexibility and interoperability.
Looking ahead, Estonia plans to make e-invoicing mandatory for all B2B transactions by 2027. This phased approach provides businesses with ample time to adapt their systems and processes.
Important dates
June 2025 (tentative)
A draft amendment to the VAT Act is expected, aiming to remove the €1,000 reporting threshold and mandate e-invoicing for all B2B transactions.
January 1, 2027 (tentative)
Mandatory e-invoicing for all B2B transactions is set to commence, aligning Estonia with EU-wide digital tax initiatives.
Legislation
- Mandatory B2G invoicing
Since July 2019, suppliers to public sector entities in Estonia are required to issue electronic invoices in compliance with the European standard EN 16931.
- Archiving Requirements
Electronic invoices must be stored securely for a minimum of seven years, as stipulated by the Estonian Value-Added Tax Act.
- Buyer’s right to request e-invoices
Effective July 1, 2025, businesses registered as e-invoice recipients in the e-Business Register can require their suppliers to submit structured electronic invoices.
- Self-registration for e-invoice reception
Companies can now self-register as e-invoice recipients in the e-Business Register, streamlining the process and reducing reliance on intermediaries.
- Future B2B e-invoicing mandate
By 2027, Estonia plans to mandate e-invoicing for all B2B transactions, aligning with broader EU digitalization initiatives.
- Digital reporting requirements
Businesses must report VAT transactional data via the KMD INF form, applicable to all taxable entities registered for VAT in Estonia.
Accepted formats
Invoices must be issued in structured formats such as UBL 2.1, UN/CEFACT CII, or the national XML standard EVS 923:2014/AC:2017.
Delivery channels
E-invoices can be transmitted through various channels, including the Peppol network and Estonia's decentralized system of certified service providers.
Regulating authority
The Centre of Registers and Information Systems (RIK), under the Ministry of Justice, oversees e-invoicing compliance and manages the e-Business Register.
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Compliant Peppol access
B2Brouter is a certified Peppol Access Point, enabling fully compliant electronic invoice exchange with Estonian public entities and businesses.
International compatibility
Send and receive structured invoices across Europe using a single platform that supports EN 16931 and UBL 2.1 standards.
Automatic invoice validation
Reduce errors with real-time validation of your electronic invoices before sending, ensuring compliance with Estonian and EU formats.
User-friendly and scalable
B2Brouter offers an intuitive interface with scalable plans for freelancers, SMEs, and large enterprises operating in Estonia and beyond.
Certifications
B2Brouter is certified with the ISO 27001 standard on information security management, certified as a Peppol Access Point Service Provider and a member of the EESPA.
