Estonian E-Invoicing Expansion by 2025

The Accountings Act was amended aiming at expanding the use of e-invoices in Estonia by January 2025. The new rule sets that all companies registered as e-invoice receivers in the business register will have the right to require their suppliers to submit an electronic invoice.

Estonia is taking a significant step forward in streamlining its invoicing processes with the approval of a new amendment to the Accounting Act to take effect by January 2025. This amendment aims to expand the use of e-invoicing by standardizing and simplifying requirements for its circulation and formalization.

With the new amendment, companies registered as e-invoice receivers in the business register, including all public sector entities, are empowered to demand machine-readable e-invoices from suppliers.

The recently approved bill seeks to standardize and simplify requirements for the circulation and formalization of e-invoices in Estonia. By doing so, it creates flexibility for businesses to perform or acquire corresponding services according to their specific needs and economic expediency. The government's emphasis on standardization is particularly aimed at promoting the use of the European standard for e-invoices, thereby eliminating the existing double standard previously in place. However, it is highlighted that the principle of transaction and format freedom remains intact. This means the state does not prohibit the further use of any existing e-invoice format, although the default format will be the European standard.

Customers will have the right to request e-invoices from sellers. Transaction partners are free to agree on the format of the invoice, although the default format will be the European e-invoice standard.

Have a look at the official annoucement.

Check our European e-invoicing overview, including the implementation statuses both for B2B and B2G transactions.

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