E‑invoicing in Estonia
B2G transactions
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.
B2B transactions
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.
B2C transactions
Business-to-consumer (B2C) e-invoicing is not mandatory in Estonia.
Live/real-time reporting 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.
Noncompliance penalties in Estonia
Currently, there is no official guidance or published penalties for noncompliance with e‑invoicing in Estonia.
Other resources
Learn the basics, how it can help your business, and how to adapt.
Discover the Avalara solution for global e-invoicing compliance.
Hear about the latest e-invoicing mandates and discover how you can stay ahead of changes.
