Return to mapElectronic Invoicing in Estonia
Current panorama and future of electronic invoicing in Estonia, with information concerning the obligations within the public sector, expansion to B2B, and official formats and requirements regarding archiving of documents.
Characteristics of Electronic Invoicing in Estonia
Estonia has long been a pioneer in the digitization of the public administration. Since 2017, all public entities have been required to receive and process electronic invoices. As of 2019, suppliers established in Estonia must issue e-invoices when working with these public administrations.
To further promote e-invoicing adoption in the private sector, the Estonian government has approved amendments to the Accounting Act. Starting July 1st, 2025, companies will be able to register in the Estonian e-Business Register to declare that they will only accept electronic invoices. This will legally obligate their suppliers to issue invoices in that format.
Additionally, Estonia is preparing a draft bill to introduce mandatory B2B e-invoicing for all VAT-liable transactions, with implementation expected in 2027. The reform will also eliminate the current €1,000 reporting threshold for commercial transactions.
Mandatory Use
Mandatory e-invoicing currently applies to:
- All public entities for invoice reception.
- Suppliers established in Estonia when invoicing the public sector.
In the private sector:
- Starting in July 2025, suppliers will be required to issue e-invoices to companies registered as e-invoice recipients.
- By 2027, e-invoicing is expected to become mandatory for all B2B transactions subject to VAT.
The planned expansion of e-invoicing to the B2B space intended for 2027 aims to strengthen VAT control, enhance transaction transparency, and streamline tax process automation.
Administrative Requirements
Companies that wish to be listed as electronic invoice recipients must register either in the Business Register or on the official website of the Tax Authority, confirming their preference for the electronic format.
Invoice Workflow
Estonia does not count on a centralized platform. Companies and administrations use proprietary solutions or certified providers which can generate, validate and send invoices in the official formats.
Invoice Format
- Local format: national XML (EVS 923:2014/AC:2017, eXML 1.2)
- European format: EN16931 (UBL 2.1 BIS 3.0, UN/CEFACT CII)
Electronic Signature
It is not obligatory on invoice emission.
Invoice Archiving
Invoices must be archived for a period of 7 years at minimum, in line with fiscal norm and Estonian accounting policy.
Frequently Asked Questions
When will electronic invoicing be mandatory in Estonia?
Obligation is foreseen for 2027 for VAT-liable transactions, after an adoption period.
Can I require an electronic invoice on my B2B purchases prior to 2027?
Starting July 1st, 2025, businesses registered as receivers of electronic invoices may demand their providers the use of this format.
What formats are accepted in Estonia?
Accepted format include local format eXML 1.2 and European formats under EN16931 (UBL 2.1 BIS 3.0, UN/CEFACT CII).
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