Estonia has a strong tradition of e-government and digital public services, and e-invoicing plays an important role in this ecosystem. For most B2B and B2C transactions, the use of e-invoices remains voluntary. However, as of 2025 companies are able to register and require their suppliers to issue invoices in a format compliant with the European standard EN 16931.

For business-to-government transactions, e-invoicing has been mandatory since 1 July 2019. All suppliers to the Estonian public sector must issue structured e-invoices, either using the Peppol BIS Billing 3.0 XML standard or the national Estonian format, EVS 923 (known locally as e-arve). In practice, companies typically send their invoices either through the Peppol network, which is especially valued for international and cross-border interoperability, or via local service providers and accounting software connected to Estonia’s e-invoicing infrastructure.