E‑invoicing in Estonia

Business-to-government (B2G) e-invoicing is mandatory in Estonia. All suppliers selling to public entities must issue e‑invoices according to the national XML-based Estonian standard (e‑arve, EVS 923) or the European EN 16931 standard.

There is no central platform for transmission in Estonia. Suppliers can use ERP/accounting systems or third-party operators connected via Peppol.

Though not yet mandatory, Estonia operates a “buyer’s choice” model for business-to-business (B2B) transactions: any business registered in the Estonian e‑business register as a recipient may request e‑invoices. Once requested, the supplier must issue the invoice — ideally in the European standard (EN 16931), unless another format is mutually agreed.

A full B2B mandate is expected in Estonia by 2027.

Business-to-consumer (B2C) e-invoicing is not mandatory in Estonia.

There are currently no live/real-time reporting requirements in Estonia. VAT reporting is done via KMD‑INF forms, not through e‑invoice data.

Currently, there is no official guidance or published penalties for noncompliance with e‑invoicing in Estonia.