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.
