The mandatory fields
The requirements sit in § 37 of the Value-Added Tax Act. An invoice from a VAT-registered Estonian company must show:
- A serial number, unique and in sequence.
- The date the invoice was issued.
- The date of supply, where it differs from the issue date.
- Your company's legal name, registered address and registry code.
- Your VAT number.
- The customer's name and address.
- The customer's VAT number, for business-to-business (B2B) supplies to other EU member states.
- A description of the goods or services.
- The quantity or scope.
- The unit price excluding VAT, and any discount if not included in that price.
- The taxable amount, broken down by VAT rate where more than one applies.
- The VAT rate and the VAT amount, in euros.
- The total payable.
When the invoice must be issued
Within seven calendar days of the goods being dispatched or made available, or the services being provided. For intra-Community supplies of goods and for services to a taxable person in another member state, the deadline moves to the 15th day of the month following the supply. Intra-Community simply means between EU countries, for example goods sold to a VAT-registered business in Germany.
Seven days is shorter than most people assume. It runs from the supply, not from the end of the month. Invoicing everything on the last day of the month is a habit, not a rule. If your company provides continuous services, check that habit against the deadline.
The wording that has to be on the invoice
Reverse charge
When the customer accounts for the VAT rather than you, the invoice carries no VAT and must say so. In plain terms, the buyer reports the VAT in their own country instead of you charging it. A reference to the reverse charge is required, typically along the lines of "Reverse charge, Article 44 of Directive 2006/112/EC" for services to a business in another member state. Both your VAT number and the customer's must appear.
Intra-Community supply of goods
Zero-rating means you charge 0% VAT because the goods leave Estonia for a business in another EU country. It requires the customer's valid VAT number, checked in VIES (the EU's VAT number checking system) at the time of supply. You also need evidence that the goods left Estonia, and a reference on the invoice to the exemption being applied. Checking the number later is not the same as checking it then. A dated screenshot from the time is worth keeping.
Domestic reverse charge
Estonia applies a domestic reverse charge only between two Estonian VAT-registered businesses, and only to immovable property where the seller has chosen to charge VAT, metal waste, investment gold and other precious metals, and certain metal products listed by customs code, such as steel bars, beams and pipes. It does not cover construction services. The invoice is issued without VAT and must note that the reverse charge applies.
If your company is not VAT registered
You still issue proper invoices with all the commercial information. You do not add VAT. You also must not show a 0% VAT line unless there is a legal basis for it. Such a line suggests a zero-rated supply, when in fact you are outside the VAT system. Showing your registry code and address is still required.
Common invoice mistakes we see
- No registry code, only a company name.
- The customer's VAT number missing on an intra-EU B2B invoice, which puts the zero rating in question.
- Invoice numbers that restart, duplicate, or jump around, which undermines the whole sequence.
- A description reading "consulting services" for a €14,000 invoice, with nothing to show what was delivered.
- Reverse charge applied with no wording on the invoice to say so.
- Invoices issued to the founder personally rather than to the company, which costs the deduction entirely.
A practical point about software
Most invoicing tools can be set up to produce compliant Estonian invoices. Their default settings, though, are usually written for another country. Have your first invoice checked before you have issued four hundred of them with the registry code missing.
Frequently asked questions
What must an Estonian invoice contain?
It needs a sequential number, the issue date and the supply date if different. It shows your legal name, address, registry code and VAT number, and the customer's details. It also lists a description, quantity, price excluding VAT, the taxable amount by rate, the VAT rate and amount, and the total payable.
How quickly must an invoice be issued in Estonia?
Within seven calendar days of the supply. For intra-Community supplies of goods and services to a business in another member state, by the 15th day of the following month.
Do I need to issue invoices if my company is not VAT registered?
Yes. All the commercial information is still required. You simply do not add VAT, and you should not show a 0% VAT line without a legal basis.
Tagsinvoice requirements EstoniaVAT invoicereverse charge wordingVAT Act §37
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