Electronic Invoicing in Estonia: B2B Regulations and 2026 Requirements

Status of B2B Electronic Invoicing in Estonia

The system in effect since July 1, 2025, follows the principle known as “buyer’s choice.”

A business entity may register with the Estonian Commercial Register as a recipient of electronic invoices. Once registered, it has the right to require its suppliers to send an electronic invoice for the goods or services purchased.

Therefore, the obligation depends on the recipient’s status and does not currently constitute a universal B2B mandate.

Estonia had proposed moving toward a broader B2B electronic invoicing requirement, linked also to changes in the reporting of VAT-subject transactions. However, a general mandate establishing an all-encompassing mandate for B2B in 2027 has not been approved.

Effective July 1, 2025:

• Business entities may register as electronic invoice recipients with the Commercial Registry.
• A company registered as a recipient may require an electronic invoice from its supplier.
• The European standard EN 16931 becomes the default reference when the buyer requires an electronic invoice.
• The buyer and seller may agree to use another standard or format.
• The model applies to both private and public entities.

The goal of this reform is to facilitate the adoption of structured electronic invoices in the private sector and to promote interoperability among businesses.

How does the electronic invoicing model work in Estonia?

Estonia uses a decentralized model. There is no single government platform through which all electronic invoices must pass. Businesses can use private electronic invoicing service providers, accounting solutions, or ERP systems capable of generating and receiving structured documents.

The Peppol infrastructure also facilitates the exchange of electronic invoices both within Estonia and in international transactions.

What is the status of B2G electronic invoicing in Estonia?

Estonia has been using electronic invoicing in its dealings with the public sector for years. B2G electronic invoicing became mandatory in 2019.

With the 2025 reform, the legal framework was restructured around the buyer’s right to request an electronic invoice. Public entities are registered as recipients of electronic invoices, so public sector suppliers must be able to issue them.

In practice, electronic invoicing remains necessary for billing Estonian public administrations.

What electronic invoice formats does Estonia accept?

When a company registered as a recipient requests an electronic invoice and the parties have not agreed on another format, the invoice must comply with the European standard EN 16931.

EN 16931 establishes the common semantic model for electronic invoices in the European Union and enables interoperability between different platforms and countries.

Estonia has also traditionally used its national XML standard, known as eXML. The law does not prevent the parties from agreeing to use other suitable formats, so the national standard may continue to be used when there is an agreement between the buyer and seller.

Estonia also uses Peppol BIS Billing 3.0, based on EN 16931, to facilitate the interoperable exchange of electronic documents.

How should companies operating in Estonia prepare?

Although there is currently no universal B2B mandate, companies that sell goods or provide services in Estonia must be able to determine whether their customers are registered as electronic invoice recipients and meet their requirements.

For international companies or those with a high volume of transactions, it is especially important to have a solution that allows them to:

• Generate electronic invoices structured in accordance with EN 16931.
• Adapt to each customer’s specific requirements.
• Connect to networks such as Peppol and to the operators used in Estonia.
• Integrate invoice issuance and receipt with the ERP system.
• Manage the various electronic invoice formats currently in use across Europe from a single platform.
• Adapt to future regulatory changes in Estonia and the phased implementation of ViDA.

An international e-invoicing platform allows these processes to be centralized and reduces the impact that regulatory changes in each country have on companies’ internal systems.