Value Added Tax (VAT) in Estonia 

Navigating the Value Added Tax (VAT) in Estonia can be complex, but it’s essential for businesses operating within the country. Estonia standard VAT rate is 22%, and understanding your obligations is crucial for compliance. This guide simplifies the key aspects of Estonian VAT, including registration, liability, and charges.

VAT Registration Threshold in Estonia

In Estonia, businesses must register for VAT when their taxable supply exceeds 40,000 euros within a calendar year. This threshold triggers the requirement to become a taxable person, ensuring businesses contribute their fair share to the economy.

Need assistance with VAT registration in Estonia? Contact our experts for a consultation.

Limited Liability VAT Registration in Estonia

An Estonian person and a foreign person operating through a permanent establishment in Estonia who receives specific services from a foreign person engaged in business not registered as a taxable person in Estonia is required to register as a taxable person with limited liability as of the date of receipt of the service. This provision does not apply to taxable persons or natural persons who do not engage in business.

Need assistance with Limited Liability VAT registration in Estonia? Contact our experts for a consultation.

VAT Groups: Simply

When a main company and its branches operate as a unified entity, they can register as a VAT group. This simplifies VAT management and reduces administrative burdens.

How to Register or Deregister for VAT in Estonia

For both registering and removing from the VAT list, businesses must submit an application to the Estonian Tax and Customs Board. This process ensures compliance with Estonian tax regulations.

Understanding VAT Charges

VAT is charged on:

• Supply of goods and services within Estonia (except exempt supplies)
• Import of goods into Estonia (except tax-exempt imports)
• Provision of services with a place of supply outside Estonia (unless exempt)
• Intra-Community acquisition of goods (except tax-exempt acquisitions)

Time and Place of VAT Supply

The time of supply is determined by the delivery of goods, provision of services, or when payment is received. The place of supply dictates the applicable tax jurisdiction, based on the location of goods or the type of service.

Ensuring VAT Compliance in Estonia with 1Office

This guide provides a simplified overview of VAT in Estonia. For specific details and regulations, refer to the official Value Added Tax Act. For personalized tax advice, consult a qualified tax professional. Contact 1Office for a consultation to ensure your business is compliant.

Disclaimer: This article serves as a general guide. For specific tax advice, consulting a qualified tax professional is recommended. Contact us for a consultation.