Who is required to register VAT?
- deliver goods to Estonia
- buy or sell goods in Estonia
- sell goods from Estonia directly to natural persons from other EU member states
- sell goods from Estonia to entrepreneurs from the EU within the framework of intra-Community supply of goods
- purchase goods in Estonia within the framework of intra-Community acquisition of goods
- carry out construction work in Estonia
- sell goods online to Estonia exceeding the threshold of EUR 35,000
VAT is charged on the delivery of goods and services associated with the conducting of economic activity and self-supply of goods and services. The tax-payer is a natural person conducting economic activity, registered as a VAT tax-payer. The threshold of obligatory registration is EUR 40,000.00. The threshold for a tax-payer who is an entity with limited liability is EUR 10,000.00 in regard to purchasing services.
The reporting period is a calendar month and VAT declarations must be submitted to the appropriate tax office by the 20th day of the month following the reporting period.
Foreign entities operating in Estonia must also abide by the local regulations concerning, among others, invoicing and archiving of accounts and registries.
Distance selling threshold: EUR 35,000
Currently, VAT rates in Estonia are:
- 20% – base rate
- 9% – reduced rate (medical equipment dedicated to people with disabilities, some pharmaceutical products, newspapers and magazines, books, hotel accommodation)
- 0% – intra-Community transactions and international transport
Services we provide in this country:
- VAT Registration
- VAT Settlements
- VAT Consulting