Question 1

What data must an invoice contain?

John Doe · Accepted Answer

Estonian legislation lays down a minimum set of compulsory details.

That have to appear on every sales invoice so that it qualifies as a valid source document (raamatupidamisalusdokument) for accounting and tax purposes.

The key acts are:

Accounting Act (Raamatupidamise seadus) § 7
Value‑Added Tax Act (KMS) § 37(7)

1. Mandatory invoice details

#	Required information	Legal basis	Notes
1	Title – e.g. Invoice, Credit Invoice	Accounting Act §7(3)	Must clearly indicate the nature of the document.
2	Unique invoice number	Accounting Act §7(3)	Sequential and gap‑free numbering system.
3	Date of issue	Accounting Act §7(2)	‘Time of occurrence’ of the transaction.
4	Supplier (seller) details	Accounting Act §7(3) & VAT Act §37(7)	Legal name, registry code, address, VAT‑ID (if registered).
5	Customer (buyer) details	Accounting Act §7(3) & VAT Act §37(7)	Legal name, address, VAT‑ID (if applicable).
6	Description of goods/services	Accounting Act §7(2)	Should be sufficiently specific.
7	Quantity & unit price	Accounting Act §7(2)	For services describe scope or period.
8	Net amount (per line and total)	Accounting Act §7(2)
9	VAT rate(s) and VAT amount(s)	VAT Act §37(7)	Zero‑rated or exempt must be marked as such.
10	Total amount payable	Accounting Act §7(2)	In euros unless another currency is justified.
11	Payment due date / terms	Best practice	Not mandatory but highly recommended.
12	Time of supply (if different from issue date)	VAT Act §11	Required when delivery date differs.

Tip: Electronic invoices (e‑invoices) are fully acceptable if integrity and authenticity are guaranteed.

2. Language of source documents

Invoices may be issued in Estonian or English.
Documents in any other language must be accompanied by a sworn translation into Estonian or English to be accepted by auditors or the Tax and Customs Board (MTA).

3. Proving the business purpose

Under both the Accounting Act and the Income Tax Act, an expense is deductible only if it is business‑related and substantiated.
If the invoice alone does not make the business purpose evident (e.g. taxi, parking, travel tickets), add explanatory information such as:

project or client name;
employee name & business trip dates;
licence‑plate number of the company car, etc.

Lacking or incomplete documentation may lead to the expense being treated as a non‑business cost, subject to fringe‑benefit or dividend tax.

4. Special cases & simplified invoices

Scenario	Can input VAT be deducted?	Conditions
Cash‑register receipt (kviitung)	No	A receipt alone is not a valid VAT invoice.
Simplified invoice ≤ 160 € (incl. VAT)	Yes	Must still show: issue date, supplier’s data + VAT‑ID, goods/services description, VAT rate & amount, total. Recipient may write their own name & VAT‑ID on the invoice.
Passenger transport, parking machine, unmanned fuel pump, etc.	Yes (limited)	Recipient must add their name & VAT‑ID; must prove business use.

5. Checklist before posting an invoice

Are all mandatory fields present and legible?
Do the figures add up correctly (net, VAT, total)?
Is the business purpose documented (if not obvious)?
Is the invoice in Estonian or English (or accompanied by a sworn translation)?
Is the invoice reviewed & approved according to your internal controls?

Non‑compliant invoices

If the source document is missing compulsory data, you may:

ask the supplier to re‑issue or correct the invoice; or
annotate missing contextual info yourself (date, project, car number, etc.), provided the core data required by law are already present.

However, you cannot deduct input VAT or recognise the cost as tax‑deductible while key requisites are missing.

This guide is for general information only and does not constitute legal advice. For complex situations consult a professional accountant or tax adviser.

Question 2

What data must an invoice contain?

John Doe · Accepted Answer

Estonian legislation lays down a minimum set of compulsory details.

That have to appear on every sales invoice so that it qualifies as a valid source document (raamatupidamisalusdokument) for accounting and tax purposes.

The key acts are:

Accounting Act (Raamatupidamise seadus) § 7
Value‑Added Tax Act (KMS) § 37(7)

1. Mandatory invoice details

#	Required information	Legal basis	Notes
1	Title – e.g. Invoice, Credit Invoice	Accounting Act §7(3)	Must clearly indicate the nature of the document.
2	Unique invoice number	Accounting Act §7(3)	Sequential and gap‑free numbering system.
3	Date of issue	Accounting Act §7(2)	‘Time of occurrence’ of the transaction.
4	Supplier (seller) details	Accounting Act §7(3) & VAT Act §37(7)	Legal name, registry code, address, VAT‑ID (if registered).
5	Customer (buyer) details	Accounting Act §7(3) & VAT Act §37(7)	Legal name, address, VAT‑ID (if applicable).
6	Description of goods/services	Accounting Act §7(2)	Should be sufficiently specific.
7	Quantity & unit price	Accounting Act §7(2)	For services describe scope or period.
8	Net amount (per line and total)	Accounting Act §7(2)
9	VAT rate(s) and VAT amount(s)	VAT Act §37(7)	Zero‑rated or exempt must be marked as such.
10	Total amount payable	Accounting Act §7(2)	In euros unless another currency is justified.
11	Payment due date / terms	Best practice	Not mandatory but highly recommended.
12	Time of supply (if different from issue date)	VAT Act §11	Required when delivery date differs.

Tip: Electronic invoices (e‑invoices) are fully acceptable if integrity and authenticity are guaranteed.

2. Language of source documents

Invoices may be issued in Estonian or English.
Documents in any other language must be accompanied by a sworn translation into Estonian or English to be accepted by auditors or the Tax and Customs Board (MTA).

3. Proving the business purpose

Under both the Accounting Act and the Income Tax Act, an expense is deductible only if it is business‑related and substantiated.
If the invoice alone does not make the business purpose evident (e.g. taxi, parking, travel tickets), add explanatory information such as:

project or client name;
employee name & business trip dates;
licence‑plate number of the company car, etc.

Lacking or incomplete documentation may lead to the expense being treated as a non‑business cost, subject to fringe‑benefit or dividend tax.

4. Special cases & simplified invoices

Scenario	Can input VAT be deducted?	Conditions
Cash‑register receipt (kviitung)	No	A receipt alone is not a valid VAT invoice.
Simplified invoice ≤ 160 € (incl. VAT)	Yes	Must still show: issue date, supplier’s data + VAT‑ID, goods/services description, VAT rate & amount, total. Recipient may write their own name & VAT‑ID on the invoice.
Passenger transport, parking machine, unmanned fuel pump, etc.	Yes (limited)	Recipient must add their name & VAT‑ID; must prove business use.

5. Checklist before posting an invoice

Are all mandatory fields present and legible?
Do the figures add up correctly (net, VAT, total)?
Is the business purpose documented (if not obvious)?
Is the invoice in Estonian or English (or accompanied by a sworn translation)?
Is the invoice reviewed & approved according to your internal controls?

Non‑compliant invoices

If the source document is missing compulsory data, you may:

ask the supplier to re‑issue or correct the invoice; or
annotate missing contextual info yourself (date, project, car number, etc.), provided the core data required by law are already present.

However, you cannot deduct input VAT or recognise the cost as tax‑deductible while key requisites are missing.

This guide is for general information only and does not constitute legal advice. For complex situations consult a professional accountant or tax adviser.

What data must an invoice contain?

What data must an invoice contain?

Estonian legislation lays down a minimum set of compulsory details.

1. Mandatory invoice details

2. Language of source documents

3. Proving the business purpose

4. Special cases & simplified invoices

5. Checklist before posting an invoice

Non‑compliant invoices

Discover more from VIRTUAL OFFICE IN ESTONIA