VAT in Estonia

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Estonia VAT

Estonian VAT rules are based on regulations drawn up by the EU, of which Estonia was a founding member. As a member state, Estonia is obliged to implement the EU VAT Directives, which provide guidance on VAT. Where there is a conflict with Estonian legislation the European Directive takes precedence.

Estonia VAT law

The Estonian VAT law has a specific code, named Value-Added Tax Act. It is administered by the Ministry of Finance.

Estonian VAT registration

The implementation of the European Single Market Initiative in the 1990s means it is possible to buy and sell goods without a local company – this is known as non-resident VAT trading. There is no VAT threshold in Estonia for the registration of non-resident traders – but you will need a VAT numberto record transactions and your Estonian customers will want proof that you have obtained one.

There are strict rules on when a registration can be permitted. Common scenarios which require an Estonian VAT registration include:

  • importing goods into Estonia
  • organising live events, conferences etc. in Estonia
  • holding goods in a warehouse in Estonia as stock for resale for longer than three months
  • 'supply and install' services over 12 months
  • selling goods from Estonia to other EU countries
  • distance selling to private individuals, e.g. internet retailing.

Registering for Estonian VAT generally takes four weeks, although this can vary.

Estonian VAT fiscal representative

EU companies are no longer required to appoint a full VAT fiscal representative to communicate with the Estonian tax authorities on their behalf but non-EU companies do.

Estonian VAT compliance

There are detailed rules controlling the recording and processing of Estonian transactions. These include guidelines on:

  • Estonian invoice requirements
  • credit notes and corrections.
  • Estonian VAT rates

The standard VAT rate in Estonia is 20% and there is a reduced rate of 9%.

Estonian VAT returns

Companies with an Estonian VAT number must submit regular returns detailing all taxable supplies (sales) and inputs (costs). Generally, the returns are submitted monthly. The VAT returns are due by the 20th day of the month following the reporting period.

Estonian Intrastat and EC Sales Lists

In addition to VAT returns in Estonia, companies may be required to submit extra statistical information. The Estonian Intrastat return should be filed on the 14th day of the month following the reporting period and the Estonian EC Sales list should be filed on the 20th day of the month following the reporting period.

Estonian VAT refunds

If a foreign company is providing taxable supplies in Estonia but is unable to obtain an Estonian VAT number, or is simply incurring Estonian VAT on local goods or services, then VAT may recovered through a VAT reclaim.

View more information on other countries, or find out more about VAT.