Estonia is taking significant steps towards e-invoicing adoption. Recently, Estonia’s Ministry of Finance proposed the introduction of mandatory e-invoicing for VAT-registered businesses, a move aimed at improving transparency in transaction reporting.
In this article, we’ll take a closer look at the current state of e-invoicing in Estonia, and the country’s plans to increase the use of e-invoicing. We’ll also discuss Estonia’s invoice requirements and explain how solutions like Finbite help businesses transition to e-invoicing.
In this article
Current State of e-invoicing in Estonia
Like most other countries in Europe, Estonia has already introduced e-invoicing legislation for public-sector transactions. And the private sector may see similar regulations soon.
The government has already approved an amendment to the Estonian Accounting Act which will come into effect in July 2025 and will allow businesses to require e-invoices from their suppliers. While this is not an absolute mandate, it’s a significant step towards the complete transition to e-invoicing in Estonia.
Different e-invoicing solutions
E-invoice software for machine-readable automation
Machine-readable electronic invoices are invoices with a structured data format, allowing for automatic and electronic processing by e-invoicing software and other systems.
Compared to digital invoices (eg PDF invoices), machine-readable invoices can be processed quickly and efficiently, saving time and money, and reducing administrative burdens. E-invoicing software that uses machine-readable automation leads to faster payment cycles and improved cash flow management.
Finbite allows users to send and receive e-invoices in any machine-readable format and validates that e-invoices comply with invoicing regulations and standards before they are sent.
PEPPOL e-invoicing
The PEPPOL network is the most widely used e-invoicing network in Europe, and allows businesses to send e-invoices securely and seamlessly across borders.
The PEPPOL network uses access points. When businesses send their e-invoice to an access point, the access point converts the e-invoice into the PEPPOL format, and then sends it through the PEPPOL network to the recipient’s access point. This system is fast, cost-effective, and reduces the risk of fraud.
PEPPOL e-invoicing is based on the PEPPOL BIS Billing specification, which is fully compliant with e-invoicing requirements in Europe like EN 16931 standard.
As a certified PEPPOL service provider in Estonia, Finbite offers cost-effective solutions for sending and receiving PEPPOL e-invoices.
How e-invoicing works in Estonia
Estonia invoice requirements
While invoice requirements per country can vary, invoice issuers should generally include the following information when sending invoices:
- Invoice date
- Sender information
- Recipient information
- Type of goods or services supplied
- Total amount
When issuing an invoice for taxable businesses in Estonia, invoices should also include the business’s VAT number, the taxable amount according to value added tax rate, and the tax amount in euros.
Invoice format requirements depend on the type of transaction. For B2G transactions in Estonia, all invoices must be in a machine-readable electronic format.
When sending or receiving e-invoices through the PEPPOL network (popular for cross-border transactions), businesses also need a PEPPOL ID and must use a PEPPOL service provider.
Examples of e-invoicing in Estonia
Although B2B e-invoicing is not mandatory in Estonia, many businesses are already using e-invoicing solutions to improve operational efficiency, save time, and reduce errors:
Eesti Energia: Estonia’s leading energy company uses e-invoicing for B2B transactions when the business customer has the capability to receive e-invoices. By using purchase and sales e-invoices, Eesti Energia enhances billing efficiency for their company and their business customers. B2C e-invoicing is available upon request. If a private customer requests e-invoicing, they can ask for e-invoices to be sent directly to their online bank.
Omniva: This Estonian post and logistics company uses Finbite’s e-invoicing software to send and receive e-invoices, digitize PDF invoices, and streamline e-invoice approval through a digital confirmation circle.
Future of e-invoicing in Estonia
Beyond July 2025, when businesses will be able to require e-invoices from suppliers, the Estonian Ministry of Finance also plans to introduce mandatory B2B e-invoicing for VAT-registered businesses.
However, while the government has ambitious plans to mandate B2B e-invoicing, there has been some pushback from Estonian businesses and it’s unclear how the mandate will come into effect.
Estonia’s real-time economy vision for 2020-2027 highlights e-invoicing as an important component of the transition to a real-time economy. According to their report, using solutions like e-invoicing could save up to 14 million working hours and 200 million euros. They also suggest that Estonian taxpayers could save 100 million euros per year by adopting e-invoicing solutions.
With this knowledge and the digital infrastructure to support their vision, Estonia is likely to push for the mandatory adoption of e-invoicing in the future, leading to lower costs, enhanced efficiency, and reduced administrative burdens for businesses.
FAQ: Estonia E-Invoicing
What do you need for an invoice in Estonia?
Estonia invoice requirements depend on the type of invoice. In general, invoices should include information such as invoice date, sender information, recipient information, type of goods or services supplied, and the total amount.
If the invoice recipient is VAT registered, the invoice should also include their VAT number, a description of the VAT rate applied, and the tax amount.
When sending and receiving e-invoices through the PEPPOL network, both invoice sender and recipient need a PEPPOL ID and access to a PEPPOL service provider.
How many countries have e-invoicing?
Currently, more than 80 countries worldwide have implemented e-invoicing mandates in some form. For example, most countries in Europe have implemented e-invoicing due to legislation like Directive EN 16931, which requires all public institutions in the EU to be able to receive e-invoices.
How to send a free e-invoice in Estonia?
In Estonia, there is no charge to send e-invoices to public institutions. Businesses can also use Finbite for free e-invoicing in Estonia. With the free Starter plan, Finbite users can send and receive up to 5 free e-invoices per month (incl PEPPOL e-invoices).
Who requires e-invoicing in Estonia?
E-invoicing in Estonia has been mandatory in the public sector since 2019. As of July 2025, Estonian businesses can register as e-invoicing recipients in the National Business Register, allowing them to require e-invoices from suppliers.
What is the best software for e-invoicing in Estonia?
Finbite is the best e-invoicing software in Estonia. As an all-in-one invoicing solution, Finbite users can easily create, send, and manage electronic invoices in any format, including PEPPOL.
Businesses can sync Finbite with their existing accounting software to automatically upload invoices and send them out in any e-invoice format. With Finbite’s digital confirmation circle, businesses can create streamlined systems to approve invoices.
Finbite also integrates with leading ERPs in the Baltics like SimplBooks and Scoro, allowing for complete integration between e-invoicing processes and existing systems.
Start sending e-invoices in Estonia with Finbite
With the shift towards mandatory e-invoicing in Estonia, it’s essential to have a reliable, efficient invoicing solution. Finbite is an all-in-one invoicing solution where businesses can conveniently send and receive e-invoices in any format.
With automated invoicing, digital confirmation circles, and integrations with existing systems, Finbite saves time, reduces costs, and drives efficiency for businesses in Estonia.
Contact Finbite today and get started with e-invoicing.
