Outline e-invoicing and threshold elimination and overview of the Estonian Ministry of Finance's proposal.
The Estonian Ministry of Finance has put forth a proposal to eliminate the threshold for declaring taxable transactions and to mandate the use of e-invoices, with a potential implementation date set for 2027. On December 3, 2024, the Ministry of Finance presented these proposals and expressed its intention to draft a bill aimed at amending the VAT Act.
The Ministry is contemplating:
- The removal of the 1,000 EUR threshold for transaction declarations, and
- The establishment of compulsory e-invoicing for all B2B transactions subject to VAT.
- The anticipated bill is expected to be prepared in 2025, with a possible enactment in 2027.
Starting July 1, 2025, all businesses registered as recipients of e-invoices in the business register, including public sector entities, will have the authority to require their suppliers to provide machine-readable electronic invoices.
In summary, the extension of e-invoicing requirements, effective from July 1, 2025, remains in place, while the Ministry has proposed the implementation of mandatory e-invoicing beginning in 2027.
SAP add-on via clearance model
KGT SAP add-ons for SAF-T, e-invoicing and MTD UK for VAT work as a standalone application within the SAP system and do not change existing customer SAP functionality or processes. It is fully configurable with a custom namespace /KGT.
KGT partnered up with SAP regarding 'SAP Advanced Compliance Reporting for SAP HANA'. The 'Advanced Compliance Reporting' (ACR) service enables you to configure, generate, analyze, and electronically submit statutory reports that contain indirect taxes, such as value-added tax.
KGT also provides S/4 HANA transformation support.
