Estonia’s transformative e-invoicing mandate isn’t just about compliance—it’s about reshaping how B2B and B2G transactions are handled. Starting in 2025, these changes will streamline operations and eliminate errors, with full adoption required by 2027. Ready to future-proof your invoicing?

The Estonian Ministry of Finance has introduced a transformative plan to mandate e-invoicing for mainly B2B and B2G businesses. This aligns with the EU initiative to introduce mandatory intra-community e-invoicing starting from July 2030. Estonia’s rollout will occur in two phases:

July 2025: Sellers in Estonia must issue e-invoices upon customers’ request.

2027: All B2B transactions must be issued and received using e-invoicing.

These regulations aim to combat tax fraud, estimated to save €16.6 million annually, by ensuring all invoices are validated and electronically reported. Additionally, they will reduce manual errors and streamline invoicing processes. The phased rollout will encourage e-invoicing adoption early, easing the transition to full compliance by 2027 and minimizing disruptions for businesses.

 

 

July 2025: Customer’s Right to E-invoicing

On 18 September 2024, Estonia’s parliament approved e-invoicing changes to the Accounting Act Amendment Act. The government has introduced a mandate granting customers the right to request e-invoices starting from 1 July 2025, delayed from the original January 2025 timeline.

Under this mandate, buyers can insist on receiving e-invoices from their taxable suppliers. Suppliers must ensure they can issue e-invoices to their buyers. While business partners can mutually decide on the e-invoice format, the EN16931 e-invoice standard will apply as the default if no agreement is reached.

 

 

2027: Mandatory B2B E-invoicing Estonia

Estonia plans to fully transition to mandatory e-invoicing for all B2B transactions by 2027. This initiative requires all taxable businesses in both the B2G and B2B sectors to adopt e-invoices for issuing and receiving, ensuring streamlined and compliant invoicing processes across the board.

 

 

Present Regulations

Currently, public sector organizations in Estonia are required to accept and process e-invoices, and their suppliers must issue them. However, B2B and B2C e-invoicing remain voluntary for now, allowing businesses time to adapt and prepare for the forthcoming mandates.

Click here for a complete Invoicing Guide for Estonia.

 

 

Looking For Compliant Estonian E-invoicing Supplier?

With Space Invoices, you can rely on a single API for global invoicing compliance, including both current and future Estonian regulations. Our API simplifies e-invoicing processes, saving you time, cutting costs, and eliminating manual errors. Instead of spending valuable time on invoicing, let us handle it for you—while giving you the opportunity to earn invoicing revenue.

For more details on our API and compliance capabilities, click here or contact us.

 

This guide is for informational purposes only, as regulations and timelines can change frequently. While we strive to monitor updates and maintain the accuracy of our content, we recommend consulting with a tax professional or e-invoicing specialist for the most reliable and personalized advice. This content was last updated on December 19, 2024.