- Mandates for E-Invoicing: E-invoicing is mandatory for Business-to-Government (B2G) transactions since July 1, 2019, and has been standardized to include Business-to-Business (B2B) transactions since July 2025. However, there is no requirement for Business-to-Consumer (B2C) e-invoicing.
- European Standard Adoption: Estonia has adopted the European e-invoicing standard (EN 16931), which all accounting entities must use for e-invoicing, ensuring compliance and interoperability. The country employs a decentralized model for e-invoicing, allowing private service providers to facilitate invoice exchanges.
- Future Developments: The Ministry of Finance is considering amendments to the Value-Added Tax Act to introduce mandatory e-invoicing for all VAT-subjected B2B transactions by 2027, moving towards eliminating the current EUR 1,000 reporting threshold and enhancing overall e-invoicing compliance.
Source ec.europa.eu
Briefing document and podcast: E-Invoicing Compliance in Estonia
Timeline of eInvoicing in Estonia
| Year | Milestone | Description |
|---|---|---|
| 2014 | EU Directive 2014/55/EU | The European directive on eInvoicing in public procurement is published. Estonia begins aligning its national strategy. |
| 2017 | EN 16931 Standard Published | The European standard for eInvoices is officially released. Estonia adopts it for interoperability. |
| 2019 | Mandatory eInvoicing for Central Authorities | Estonia requires central government entities to receive and process eInvoices compliant with EN 16931. |
| 2020 | Deadline for Sub-Central Authorities | Sub-central authorities (e.g. municipalities) must comply with eInvoicing requirements by April 18. |
| 2024 | Legal Approval for Buyer’s Choice Reform | On 18 September, Estonia’s Parliament approves amendments to the Accounting Act, paving the way for the 2025 changes. |
| 2025 | Buyer’s Choice Reform Begins (1 July) |
- Buyers (public and private) can choose how they receive invoices—PDF or structured eInvoice.
- Businesses can self-register as eInvoice recipients in the business register.
- If no format is agreed, invoices must follow the European standard (EN 16931).
Estonia – E-Invoicing & E-Reporting Mandates (Updated for July 2025)?
| Transaction Type | Entity Type | Mandatory E-Invoicing | Notes |
|---|---|---|---|
| B2G | Established | ✅ Yes | Mandatory since April 2020; must comply with EN 16931 standard |
| Non-Established | ✅ Yes | Same requirement applies | |
| B2B | Established | ✅ Yes (if buyer requests) | As of July 2025, buyer can demand e-invoice; seller must comply |
| Non-Established | ✅ Yes (if buyer requests) | Applies to all accounting entities regardless of establishment status | |
| B2C | All | ❌ No | No mandate for consumer transactions |
| E-Reporting | All | ❌ No | No real-time VAT reporting required |
- See also
- Join the Linkedin Group on Global E-Invoicing/E-Reporting/SAF-T Developments, click HERE
