Estonia’s government has greenlit adjustments to e-invoicing regulations under the Accounting Act Amendment Act, aiming to introduce the possibility of mandatory e-invoicing starting January 2025. This option will be accessible to taxpayers registered as e-invoicing recipients in the Estonian e-business register. Parties involved can decide on a machine-readable format; otherwise, the default EU EN16931 e-invoice standard will be applied. These changes await review and approval by Parliament.
If enacted, resident B2B customers would have the choice to request e-invoices from their suppliers, potentially altering the definition of ‘machine-processable invoice’ to conform with the EU’s EN 16931 structured e-invoice format. Currently, businesses in Estonia may employ either the Estonian standard or the EU’s. The Estonian Information Technology and Telecommunication Union suggests transitioning to the EN 16931 format for B2B transactions as well.
The Accounting Act in Estonia oversees fundamental accounting operations for all registered business entities. Since March 2017, Estonia has mandated e-invoicing for B2G transactions, utilizing either the Estonian UBL, UN/CEFACT CII, or European e-invoicing standards. Instead of a centralized government platform for e-invoice exchange, parties can directly exchange or use commercial intermediaries, with many employing the Peppol network.
