Estonia’s E-Invoicing Updates: Key Changes for 2025 and Beyond
The Estonian Ministry of Finance has outlined its timeline for implementing mandatory e-invoicing, targeting 2027 for domestic B2B transactions. Legislation to formalize this requirement is expected in June 2025, following public consultations.
From July 2025, businesses in Estonia will gain the right to request structured e-invoices from local suppliers, a step aimed at accelerating e-invoicing adoption. These changes align with the EU’s broader VAT reforms under the "VAT in the Digital Age" initiative, which will require cross-border e-invoicing by July 2030.
Additionally, starting in 2027, the current €1,000 threshold for declaring individual VAT transactions will be removed, making it mandatory to report all transactions. Combined, these measures could contribute an estimated €16 million annually to state revenue.
In September 2024, Estonia’s Parliament approved amendments to the Accounting Act, allowing optional e-invoicing for businesses listed in the e-business register. These rules, effective July 2025, aim to standardize e-invoice formats under the EU’s EN 16931 framework, replacing dual standards with a unified European format.
E-invoicing has been mandatory for public-sector transactions in Estonia since 2019, with private-sector adoption lagging. By updating regulations, Estonia seeks to fully integrate digital invoicing across both public and private sectors, streamlining accounting processes.
There’s more you should know about global e-invoicing changes – learn more about the new and upcoming regulations.
