Estonia Plans General B2B E-Invoicing Mandate by 2027

B2B General E-invoicing Mandate by 2027

During the first week of December 2024,the Ministry of Finance announced a set of measures to improve the VAT collection in Estonia. These are the two proposals announced:

• The intention to develop a draft amendment to the VAT Act to introduce a general B2B e-invoicing mandate in 2027.
• Also, another measure proposed is to withdraw the EUR 1,000 exemption threshold per transactions partner in the taxable period to declare the transaction in the ledgers declaration. 

Find the official announcement here.

E-invoicing Required by the Recipient as of July 2025

Estonia introduced an atypical e-invoicing mandate, where entities registered as e-invoicing recipients in the national Business Register are entitled to require e-invoices from suppliers. The new regulation was initially planned to be effective by January 2025, however, the go live was postponed to July 2025. 

Concerning the e-invoicing format, the regulation determines that it should be compliant with the European standard for e-invoices (EN 16931), unless other format is agreed between the buyer and seller. Therefore, the principle of transaction and format freedom remains intact, so the further use of any existing e-invoice format is allowed, although the default format will be the European standard.

The new e-invoicing regulation was adopted by way of an amendment to the Estonian Accounting Act. This amendment is presented as a way to expand the use of e-invoicing by standardizing and simplifying requirements for its circulation and formalization. Have a look at the new regulation and the Estonian Business Registry website.

Have a look at the initial official annoucement.