The state should not regulate the method of invoice transmission between companies

The draft amendment to the Accounting Act, which has reached the Economic Affairs Committee of the Riigikogu, grants all accounting entities registered in the commercial register as e-invoice recipients the right to demand an e-invoice compliant with the European standard when purchasing goods or services from another accounting entity. The Chamber of Commerce and Industry (ECCI) fully supports the promotion of e-invoice adoption but does not endorse all the proposed changes.

According to the current Accounting Act, an accounting entity must submit an e-invoice to a public sector organization when selling goods or providing services to the public sector. The draft bill in the Riigikogu modifies this principle so that in the future, an accounting entity registered in the commercial register as an e-invoice recipient can demand an e-invoice compliant with the European standard from the seller for the purchased goods or services. This means that after the amendment comes into force, a public sector organization may demand an invoice in another format instead of an e-invoice, but at the same time, a private sector accounting entity will also have the right to demand an e-invoice from another private sector accounting entity.

Granting the buyer the right to demand an e-invoice causes ambiguity
The Chamber supports the proposed change to the extent that public sector organizations will have the right to demand an invoice in a format other than an e-invoice from an accounting entity and that the accounting entity will no longer be obligated to submit an e-invoice to the public sector.

However, the Chamber does not support making the same change for invoices between companies, as it creates confusion for entrepreneurs who have not agreed on the method of invoice transmission in their contracts or if such an agreement is not detailed enough. For example, if the parties currently do not have an agreement on the method of invoice transmission and the buyer has registered as an e-invoice recipient in the commercial register, the buyer may demand an e-invoice compliant with the European standard from the seller upon the enactment of the bill, even though the contracting parties have used PDF invoices for years. To avoid such unexpected situations, it is reasonable for the parties to amend their contract before the amendment comes into force, but this is an additional burden for the contracting parties.

Confusion may also arise if the buyer demands an e-invoice from the seller based on the planned amendment, but the seller does not comply. In such a case, it may be questioned whether the seller is obligated to submit an e-invoice and what happens if the seller refuses to submit an e-invoice compliant with the European standard and instead submits, for example, a PDF invoice. Additionally, confusion may arise about whether the buyer can refuse to pay the invoice on the grounds that the seller sent an invoice, but not an e-invoice compliant with the European standard.

The Chamber proposed to the Economic Affairs Committee to amend the wording of the draft so that a public sector organization has the right, but not the obligation, to demand an e-invoice from the seller, but the same principle should not apply to invoices between companies. Additionally, we proposed postponing the entry into force of the bill by one year to give entrepreneurs more time to adapt to the changes. According to the current version of the draft, the changes will take effect on January 1, 2025.

It is currently unknown to what extent the Economic Affairs Committee of the Riigikogu will consider the Chamber's proposals. You can read more about the bill under consideration in the Riigikogu here.