Estonia Regulatory Updates May 2024

The Government of Estonia approved a bill to amend the Accounting Act

The government has passed a bill updating the Accounting Act to simplify and standardize e-invoice processes, allowing services to be tailored to specific needs and costs. This includes adopting a unified European e-invoice standard and maintaining format flexibility, as detailed by Rainer Osanik from the financial policy department.

All entities registered as e-invoice receivers can now demand machine-readable e-invoices, promoting efficiency and direct machine communication. The amendment, influenced by a study from Ernst & Young and stakeholder feedback, specifies that the European e-invoice standard will apply by default unless otherwise agreed. This law will take effect on January 1, 2025.