- Proposed Reforms: The Estonian Ministry of Finance has proposed two key reforms to enhance its tax system: eliminating the €1,000 threshold for transaction reporting and mandating electronic invoicing for all business-to-business (B2B) transactions.
- Implementation Timeline: These reforms are set to take effect in 2027, following a necessary adaptation and technical preparation period for businesses and tax authorities.
- Objective of the Reforms: The initiatives aim to improve VAT collection, automate tax processes, reduce fraud risks, and simplify administrative burdens on taxpayers by ensuring all transactions, regardless of value, are reported.
- Legislative Development: The draft legislation to amend the VAT Act is expected to be completed by 2025, giving stakeholders adequate time to adjust to the new requirements.
- Expansion of Electronic Invoicing: Starting July 1, 2025, companies can register as recipients of e-invoices in the commercial registry, allowing them to request machine-readable electronic invoices from suppliers. The approved formats include the European EN16931 UBL – BIS 3.0, CII, and the local eXML 1.2.
Source Edicom
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