E-invoice in Estonia: How It Works and What Changed in 2025

Key takeaways:

• E-invoice requirements now apply to all business-to-business transactions, not just public sector

• Your company must be ready to send e-invoices if your customer requests them

• By default, e-invoices must now follow the EN 16931 European standard for electronic invoices, if not agreed otherwise

• Limited operators may create bottlenecks - register as an e-invoice sender today to avoid bottlenecks

The amendments to the accounting act that came into effect on July 1, 2025, have transformed how electronic invoicing works in Estonia.

Your business might now find itself required to send e-invoices. However, don't worry – this change brings more opportunities than headaches.

Read on to turn this change to your advantage!

How These Changes Impact Your Business

Here's what's different: Previously, you only had to send e-invoices when working with government organizations. Now, private sector companies can also insist on receiving electronic invoices, and you'll need to be ready to accommodate these requests.

This means B2B e-invoicing has expanded beyond just dealing with public sector entities.

The key is preparation – understanding when and how to send e-invoices will keep your business relationships smooth and your payments flowing on time.

When You'll Need to Send an E-invoice

The obligation kicks in when your customer demands it and has registered as an e-invoice receiver in the business register. As the invoice issuer, you'll need to comply with their preferred method of receiving invoices.

Forward-thinking businesses have begun updating their contracts to specify invoice submission requirements. Whether you'll need to send invoices as e-invoices or PDF invoices should be crystal clear before you start any business relationship.

If e-invoices are required, make sure to specify which standard they should follow – the European standard EN 16931 is typically the default choice.

This upfront clarity prevents awkward situations later when it's time to process payments and ensures everyone knows exactly what to expect.

What Actually Changed on July 1, 2025?

1. All companies can now demand e-invoices from their business partners. Any entity with accounting obligations can register as an e-invoice receiver and insist on this format.

2. Changes in settlements with public sector entities. Since 2019, public sector entities could only accept e-invoices, but the new rules actually relax this requirement. Government organizations can now choose to accept other digital invoicing formats, including PDF invoices, though most will likely stick with e-invoices.

3. Registration to start receiving e-invoices got simpler. Previously, you needed to work through a service provider to register as an e-invoice receiver. Now businesses can handle this registration independently through the business register – no middleman required.

4. Transition to a unified standard. Previously, most e-invoices followed the Estonian standard (EVS 923:2014/AC:2017). The new e-invoice application requirements mean invoices should generally comply with the European standard EN 16931, though parties can agree on alternatives.

   If technical standards aren't your thing, working with a software provider, like Sliptree, who handles these details for you, makes sense.

Understanding the EN 16931 European Standard

The EN 16931 is the European Economic Area's unified approach to machine-readable electronic invoices. It sets the rules for e-invoices and can be used with different formats.

One of the most commonly used formats based on this standard is Peppol BIS Billing 3.0. It ensures that whether you're sending invoices to companies in Estonia or elsewhere in Europe, the data structure remains consistent and compatible.

There are different software providers to help you out with the standards. For example, Sliptree lets you export e-invoices to the Peppol format effortlessly, making cross-border transactions seamless.

Getting Ready for the Transition

Here's something important: Law firm Rask has pointed out that the number of e-invoice operators in Estonia is limited, and these operators weren't involved in discussing the law changes. This could create bottlenecks as businesses rush to register, especially since most companies need to go through these operators to set up their first e-invoice capability.

Don't wait until the last minute. Register your business as an e-invoice sender now – it won't cost you anything nor create any immediate obligations. It could save you a lot of headaches down the line, though.

Make sure your team knows what's coming. If you have staff members who handle invoices independently – sales team, project managers, or anyone who deals with customer payments - they need to understand how e-invoices work and when to use them.

Finding Your Perfect E-invoice Setup

The easiest way to prepare is by opening an account with a digital invoicing platform that handles e-invoices. Sliptree enables you to register as an e-invoice sender with just one click, and you can get started without any fees.

You can also check which of your existing customers have enabled e-invoice receiving – these are the ones who'll likely start requesting e-invoices from you soon.

Turn This Change Into a Competitive Advantage

Instead of viewing e-invoices as just another compliance requirement, think of them as a business upgrade. Machine-readable electronic invoices flow automatically between your systems and your customers' accounting software, eliminating manual data entry and reducing errors.

When invoices integrate directly with your customer's payment systems, everything happens faster and more smoothly.

Electronic Invoices Save Time and Reduce Errors

One of the greatest benefits of e-invoices is the significant time savings. You won't have to dig through emails searching for misplaced invoices or worry whether your customer has received that crucial invoice with an upcoming payment date.

The automated nature of e-invoices means payment amounts, invoice dates, and other critical data transfer accurately every time. Even if your customer has insufficient funds in their bank account, they will be notified immediately, rather than discovering payment issues weeks later.

B2B E-Invoicing Means Better Cash Flow

Business-to-business e-invoices appear instantly in your customer's accounting software. This can be especially useful for domestic payment processing, where intra bank payment systems can execute transactions quickly.

Some businesses even set up standing orders for regular invoices, making the entire process hands-off once the initial setup is complete.

Environmental and Security Benefits

Beyond the practical advantages, electronic invoices are an eco-friendly option, reducing paper invoices and back-and-forth mailing.

They're also more secure, as e-invoices are transmitted over encrypted channels directly to the recipient’s system. Sensitive business information—such as payment details, taxable amounts, and order data—remains protected throughout the entire transmission process.

Getting Started with E-invoices

The simplest approach - just register with Sliptree:

1. Open a Sliptree account

2. Register yourself as an e-invoice sender with a few clicks

3. Create invoices in seconds and choose whether to send them to customers as e-invoices or PDF files

4. Try the first 14 days free to ensure Sliptree suits your company

Send your first e-invoice for free now!

Sliptree - Simple Solution for E-invoice Sending

Sliptree was created for freelancers and small businesses, making e-invoice sending incredibly simple.

No technical knowledge or complicated setup required.

Registration takes just a few minutes and you can start sending e-invoices immediately. You can also create beautiful PDF invoices customized to your company's brand in no time.

Key advantages:

• No technical knowledge or training process required

• Fully customizable PDF invoices and sales quotes

• Track sent invoice history and download sales reports when needed

• Compliance with Estonian and European (Peppol) e-invoice standards

• Supports 15+ languages and a vast amount of currencies

Frequently Asked Questions About E-invoices

What if my customer requests an e-invoice but I am unable to comply?

The law doesn't yet specify concrete sanctions. However, it could damage business relationships since customers have the right to refuse invoices submitted in other ways.

What if my supplier refuses to submit e-invoices?

If you've registered as an e-invoice receiver in the business register, you have the right to demand e-invoices from partners. You have the right to refuse invoices submitted in other ways. It's advisable to agree on invoice submission methods before cooperation to avoid unpleasant surprises when sending invoices.

Does a PDF invoice count as an e-invoice?

No, a paper invoice is not the same as an e-invoice. An e-invoice is a machine-readable XML format document that complies with a specific standard and moves directly to the recipient's accounting software. PDF invoices need to be manually entered into the system.

Can I send free e-invoices with Sliptree?

Sliptree's free plan lets you send up to 10 digital invoices of any type annually and manage up to 5 customers. During the 14-day trial period, you can send unlimited invoices. You can get started right away—no credit card required.

Plans start from €9+VAT per month. Paying for a full year saves you two months' fees.

Does Sliptree allow receiving e-invoices?

Not yet, but we're actively working on enabling Sliptree users to easily register as e-invoice receivers and receive e-invoices soon.