Estonia's Progress in E-Invoicing: Present and Future

- In 2016, Estonia amended its Accounting Act to incorporate E-Invoicing and E-Accounting. 

- Since 2019, E-Invoicing has been mandatory for the public sector under the Estonian Accounting Act. 

- Companies accepting E-Invoices are listed in a national register, which is part of the Estonian Business Register. 

- Businesses can generate E-Invoices using ERP systems or the E-Financials accounting platform within the E-Business Register portal, which also offers E-Invoicing operator services. 

- Importantly, E-Invoices must adhere to the official standard approved by the Estonian Centre for Standardisation and Accreditation.

A uniform statutory obligation for all companies does not exist yet. Although until now, E-Invoicing has been mandatory only to the public sector, the government wishes to eventually make E-Invoicing mandatory for all companies, including the private sector.  

In May 2024, the government approved a bill amending the Estonian Accounting Act.

- The plan is to implement a single European standard format for E-Invoices. This format is implemented by default, if parties have not agreed upon another format. 

- The use of existing or new possible formats of E-Invoices in the future has not been excluded.

- The right to demand a machine-readable invoice will be given to all companies registered as recipients of E-Invoices in the Estonian Business Register. 

- The seller has the obligation to present an E-Invoice to buyers. The buyer has the right to demand an E-Invoice from the seller.

- The implementation of E-Invoicing is part of a bigger process of automation in the field of economy and finance. Additionally, it can be viewed as an impediment to tax evasion.