Start and grow your business in Estonia
Expanding to Estonia or planning to sell into the EU? Understanding VAT registration in Estonia is a crucial step.
As one of Europe’s most digital and business-friendly environments, Estonia offers a fast, online tax system and transparent regulations, but knowing when and how to register for VAT ensures your company stays compliant from day one.
Need a local partner to handle VAT and accounting?
Talk to 1Office Estonia! We help foreign founders, e-residents, and companies manage VAT registration, reporting, and ongoing accounting online.
1. Estonia’s VAT system & 2025 updates
VAT in Estonia is governed by the Value Added Tax Act, administered by the Estonian Tax and Customs Board (Maksu- ja Tolliamet / EMTA). As part of the EU VAT area, Estonia’s rules align with the EU VAT Directive but feature national thresholds and procedures.
VAT rates in 2025
Standard rate: 24 % (effective 1 July 2025)
Reduced rates: 13 % (accommodation) and 9 % (press publications)
Zero rate / exempt: exports, intra-Community supplies, financial and social services
Pro tip: The VAT threshold calculation now includes zero-rated and certain real estate transactions.
Unsure which VAT rate applies to your business?
Our specialists can review your services or products and confirm the correct VAT treatment. Book a consultation with 1Office Estonia.
2. Who must register for VAT in Estonia
Local Companies
VAT registration becomes mandatory once annual taxable turnover exceeds €40,000.
You can register voluntarily earlier if you expect to reach that limit soon.
Foreign & Non-Resident Businesses
If you supply taxable goods or services in Estonia, registration is immediate — no threshold.
Non-EU businesses may need to appoint a tax representative.
For B2C digital sales, the EU OSS scheme may replace local registration.
1Office Estonia can register your company remotely, no local visit needed.
We’ll handle tax registration, communication with EMTA, and all translations. Start your VAT registration today.
3. How to register for VAT in Estonia (Step-by-Step)
| Step | Action | Required Documents / Notes |
|---|---|---|
| 1. | Create an e-MTA account | Done online via the Estonian Tax and Customs Board portal |
| 2. | Fill out the VAT registration form (R2) | For local or foreign entities |
| 3. | Provide documents | Incorporation certificate, Articles, proof of business, ID, etc. |
| 4. | Appoint a fiscal representative (if non-EU) | Required for some cases |
| 5. | Await confirmation | Usually processed within 3–5 working days |
| 6. | Start charging VAT & filing returns | Via e-MTA monthly reporting |
4. How to do taxes in Estonia after registration
Once registered, you’ll handle monthly or quarterly VAT filings online through the e-MTA system.
Filing Deadlines
KMD return: monthly, by the 20th of the next month
KMD INF: required for domestic purchases/sales over €1,000
VD return: for intra-EU supplies
Payment deadline: same as filing date
Recordkeeping & Invoicing
Invoices must include supplier/buyer details, VAT rate, and amount.
Records must be stored for at least seven years.
1Office Estonia provides monthly VAT filing, accounting, and bookkeeping.
5. VAT for cross-border and digital businesses
If you’re an international company supplying goods or services to Estonia:
Intra-EU acquisitions and B2B services are typically reverse-charged.
Exports and intra-EU supplies can be zero-rated if properly documented.
Digital services to consumers fall under the OSS (One Stop Shop) scheme.
6. Practical tips for smooth compliance in Estonia
Register early, don’t wait until after you cross the threshold.
Keep invoices and contracts well organized for possible audits.
Monitor rate changes. The 24 % standard VAT applies from July 2025.
Translate foreign documents officially when required.
Use a local partner like 1Office to manage your tax filings securely through e-MTA.
Let 1Office handle your compliance.
From VAT registration to monthly accounting and reporting, we make Estonian tax administration easy and paper-free. Contact our Estonian team now.
7. Frequently Asked Questions
What is the VAT threshold in Estonia (2025)?
€40,000 annual turnover for Estonian businesses.
Do non-EU companies need a tax representative?
In most cases, yes. 1Office Estonia can act as your fiscal contact for smooth communication with EMTA.
When must I register if I cross the threshold?
Within three business days.
How long does VAT registration take?
Usually 3–5 working days once documents are correct and submitted online.
Can I reclaim Estonian VAT?
Yes, EU entities via the EU VAT Refund system; non-EU via reciprocity agreements.
8. Why 1Office Estonia
- Experts in e-Residency & foreign business setup
- Direct online connection with EMTA for VAT & tax filings
- Full-service accounting, payroll, and tax compliance
- Local support in English and Estonian
Ready to start?
Register your company and VAT in Estonia with 1Office
