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Digitalisation

Mandatory e-accounts in Estonia. What does this mean for Lithuanian businesses?

February 3, 2025
3
min. reading

Estonia is preparing for a significant change: from 1 July 2025, all business-to-business (B2B) invoices between Estonian companies will be required to be electronic (in XML format) if requested by the recipient. In the meantime, the Estonian government is preparing new legislation to make the sending and receiving of e-invoices compulsory for all VAT payers from 2027.

B2B e-accounts in Estonia

Although business-to-government (B2G) e-accounts have long been mandatory in Estonia, a new requirement for business-to-business (B2B) accounts will also come into force from 1 July 2025. Under this change, Estonian companies will have the right to require their partners to send them only e-invoices. Meanwhile, the Estonian government has announced a plan that will require all companies to exchange only e-invoices from 2027. The draft foresees a full e-invoicing obligation for both B2B and B2G segments.

Businesses will benefit from these changes:

  • Standardised transmission of documents. Reduced administrative burden.
  • Fewer mistakes. E-invoices are processed automatically, avoiding manual data entry errors.
  • Tax transparency. Financial control and tax administration will improve.

‍WillLithuanian companies have to send e-invoices to Estonian companies?

Lithuaniancompanies will not be directly subject to this requirement, but if the Estonian partner requests it, it will be in the Lithuanian company's interest to adapt to the client's expectation, thus becoming even more involved in their account management process. It is therefore recommended to prepare now for the use of e-invoicing solutions such as the Banqup platform when working with Estonian partners.

‍Newe-invoicing requirements in neighbouring countries and the EU

‍‍
  • Latvia. B2B e-invoices will become mandatory from 2026. As of today. B2B e-invoicing via the e-address system is already mandatory from January.
  • Poland. From 2026, it will gradually introduce a requirement for all B2B invoices to be sent through the KSeF system, which will help reduce VAT fraud and streamline business processes.

The requirements for the use of e-invoicing not only in neighbouring countries, but also in the EU, suggest that similar regulations may emerge in Lithuania. The European Commission's ViDA (VAT in Digital Age) Directive aims to modernise VAT management in the EU by promoting digital solutions such as B2B e-invoicing. The Directive foresees a gradual implementation for businesses to exchange e-invoices when conducting commercial transactions with EU countries. Lithuanian businesses with partners abroad should therefore be prepared to work with e-invoices.

‍How toprepare for change?

For Lithuanianbusinesses working with partners in Estonia or other countries where B2B e-invoicing will become mandatory, it is important to prepare for the changes and choose the right tools. 

  • For SMEs, the Banqup platform enables easy and reliable issuing and sending of EU-compliant e-invoices. 
  • For larger companies, Banqup offers tailored solutions to automate invoicing processes and adapt to the requirements of different countries.

‍Whystart with e-invoicing?

  • Saving time. No more manual maintenance of account data.
  • Eliminating errors. Automatic data processing ensures accuracy.
  • Security. Electronic accounts reduce the risk of fraud.
  • Efficiency. Faster invoice processing and payment.
  • Sustainability. Less paper and digital waste.

Prepare for change now and make sure your business is ready to meet the new requirements and continue to succeed with partners in Estonia and beyond! Try Banqup for free.

Create your free Banqup account today.

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