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Estonia plans to roll out e-invoicing in 2027

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.

How Can KGT Support You?

KGT has created an SAP-integrated e-invoicing add-on solution for Estonia, featuring outbound and inbound functionalities to meet tax reporting requirements. This add-on includes a data extractor and a cockpit for generating periodic electronic invoices in the legal format and controls before submission. When SAP DRC launched Estonian e-invoicing solution as part of its e-document offerings, KGT emerged as a leading consultancy firm for SAP DRC and tax services. Recognized as an SAP DRC partner for Estonian e-invoicing services, KGT is one of SAP's recommended implementation partners for this solution. We provide comprehensive support, including installation, configuration, customization, and training, to help you maximize the long-term value of your SAP DRC investment.

KGT is a SAP partner for PE services and SAP Build partner, and to become an SAP partner, strict due diligence requirements must be met, including having certified SAP consultants. You can find us at: https://partnerfinder.sap.com/profile/0001925409

 

Country update for Estonia
09 April 2025
Stay informed about the latest indirect tax developments in Estonia, including regulatory changes, compliance requirements, and indirect tax guidance affecting businesses operating locally and cross-border. This page provides a structured overview of country-specific updates, such as new legislation, reporting obligations, digital tax initiatives, and implementation timelines.
These insights help tax, finance, and compliance professionals anticipate regulatory changes, adjust processes and systems, and maintain compliant operations in Estonia.