Estonia E-invoicing

Estonia has been working on its electronic invoicing regulations for many years, mandating B2G e-invoicing since 2019. B2B is more complicated, however.

This page has all the information you need to understand Estonia’s e-invoicing rules, journey and nuances.

1. B2B e-invoicing in Estonia 2. B2G e-invoicing in Estonia 3. The use of Peppol in Estonia 4. Timeline of e-invoicing adoption in Estonia 5. Setting up e-invoicing in Estonia 6. FAQ 7. Additional resources

B2B e-invoicing in Estonia

B2B e-invoicing is not mandatory in Estonia.

However, starting July 2025, Estonian taxpayers will be required to issue e-invoices upon the buyer’s request. Suppliers will not be generally mandated to issue e-invoices, but buyers will have the right to request them if they fulfil a specific condition.

This mandate explicitly covers businesses that register themselves in the Commercial Register as e-invoicing receivers, meaning they are entitled to request e-invoices. This is known as “buyer’s choice”. The default format is the European Standard (EU EN16931), but the parties can agree on another relevant standard.

Suppliers of businesses are not specifically mandated to issue e-invoices, but they do have to comply with requests from e-invoicing receivers.

A blanket mandate for B2B e-invoicing is currently planned to roll out in 2027 in Estonia.

B2G e-invoicing in Estonia

E-invoicing has been mandatory for the public sector since March 2017, meaning that the contracting public authority must be able to receive e-invoices in B2G transactions.

As of 1 July 2019, it has become mandatory for all suppliers to submit machine-processable invoices (e-invoices) for B2G transactions.

As Estonia runs a decentralised system, public sector entities receive e-invoices through private service providers. Roaming agreements and Peppol connectivity ensure interoperability between service providers.

The use of Peppol in Estonia

Estonia uses two primary e-invoicing formats: its national standard and the standardised Peppol format.

The country utilises Peppol’s network and framework much less than many other European countries. Traditionally, the pan-European initiative is utilised to ease the complexity of cross-border trading and e-invoice transmission.

Peppol is an international, EU-born protocol and framework that aims to simplify cross-border and governmental trade. While its adoption is widespread across Europe, it also standardises trading in countries such as Australia and Singapore.

Find out more about Peppol e-invoicing.

Timeline of e-invoicing adoption in Estonia

Here are the key dates in Estonia’s e-invoicing journey.

1 July 2019: B2G e-invoicing becomes mandatory for all suppliers
1 July 2025: The buyer is entitled to request issuance of an electronic invoice for goods or services purchased in B2B transactions
2027: Estonia plans to enforce mandatory e-invoicing for all businesses
1 July 2030: Estonian VAT-registered businesses must comply with VAT in the Digital Age (ViDA) requirements, which include mandatory e-invoicing and digital reporting for Intra-Community B2B transactions

Setting up e-invoicing in Estonia

E-invoicing is not fully mandated in Estonia just yet, meaning businesses trading in the country will have to continue adapting for the foreseeable future. Many other countries are on their own e-invoicing journey, only adding to the ongoing complexity of staying up to date (and, as a result, compliant with regulations).

Sovos can help. As your sole service provider for tax and e-invoicing compliance, we monitor all relevant regulatory changes and manage your compliance needs—providing you with the space and time necessary to continue growing your business.

Let’s chat.