Estonia Mandate: 1 July 2025
ViDA
Estonia has been the predetermining factor in the adoption of ViDA (VAT in the Digital Age). As previously, Estonia held a ‘veto’ to one of the Pillar's of ViDA. As of 5 November 2024, Estonia has removed their ‘veto’ as a compromise was reached, thus drawing a consensus on the future adoption of ViDA.
Background
On 18 September 2024 the Estonian Parliament (Riigikogu) adopted the amendments made to the Accounting Act. The amendments are, but are not limited to, the 6-months postponement of the implementation date of the e-invoicing mandate. The initial implementation date being 1 January 2025, being postponed to 1 July 2025. The amendments aim to promote B2B e-invoicing, as B2G e-invoicing has been mandated since 2019.
The Mandate
Estonia has since elected to start implementing an e-invoicing mandate. As of 1 July 2025, business entities (both private and public) have to provide e-invoices to all business entities that have registered with the Commercial Registry as a recipient of e-invoices, unless the parties have established a separate agreement in the alternative. All public administrations are registered and are therefore required to be able to receive e-invoices, and public contracting authorities are required to furnish e-invoices to public bodies for goods or services rendered.
The Format
The mandate states that the European invoice standard will be applicable (EN 16931) in cases where a format was not agreed to between the parties. The EN 16931 UBL will then enjoy preferable legal status, however, e-invoicing will be treated as a developing system and allowances will be made for the introduction of new or the use of existing e-invoice formats. Therefore, Peppol BIS 3.0, CII and eXML 1.2 will be accepted formats to utilize.
The Platform
The Estonian Government will not make use of a central platform, as Estonia’s approach to e-invoicing will follow a decentralized continuous transaction control model.
Estonia has private entities, who, by way of agreements, will exchange e-invoices from an enterprise resource planning (ERP) system of one entity to the software of another entity.
Alternatively, the use of Peppol can assist in the exchange of e-invoices and create opportunities for more efficient cross-border transaction exchange.
Conclusion
Estonia has embraced the digitalization of operations transaction exchange mechanisms and has elected to establish a Centre of Registers and Information Systems (RIK). All entities who invoice electronically are to register with RIK. The implementation of e-invoicing is to simplify and standardize invoicing requirements and ensure a global ease in exchange efficiency.
