From July 2025, Estonian taxpayers will be required to issue e-invoices upon the buyer’s request, with the aim of stimulating wider e-invoicing adoption in the country. While this measure can lead to an increase in e-invoicing, the government aims to achieve additional broader goals, such as enhancing transparency, reducing fraud, and improving VAT collection.
In view of the above, the Estonian Ministry of Finance (MoF) has now proposed introducing mandatory e-invoicing for transactions between VAT-registered taxpayers (B2B).
Details regarding the specific e-invoicing model to be adopted are still unclear. However, the MoF is taking into consideration the upcoming changes under ViDA (VAT in the Digital Age), including mandatory digital reporting requirements (DRRs) for intra-EU cross-border transactions, as well as the experiences of other EU countries that have implemented or plan to implement mandatory B2B e-invoicing.
The proposed changes will require amendments to the VAT Act and other relevant regulations. The draft will be presented to the Estonian Parliament and coordinated with ministries and key stakeholders.
The government aims for these changes to take effect by 2027.
