Estonia: New increase in standard VAT rate
Country Briefs
Estonia
25 July 2024
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Whether you’re a European or non-European company, establishing certain activities in Estonia may mean you need to register for VAT. You can use a fiscal representative or tax advisor to draw up your VAT, Intrastat and ESL returns with total peace of mind in Estonia.
If you deal with companies in Estonia, you may be able to claim a Estonian VAT refund.
In this VAT guide, we have brought together the specific features of the Estonian regulations, which interact with the harmonized framework within the European Union.presented in our guide to intra-Community VAT obligations.
With EASYTAX, be 100% VAT compliant, always.
Basic information |
|
|---|---|
| EU membership | |
| ISO code | EE |
| VAT introduced in Estonia | 1991 |
| VAT name in Estonia | Käibemaks |
| VAT ID format in Estonia | EE999999999 |
| Territories with special status in Estonia | n/a |
VAT rates in Estonia |
|
| Standard VAT rate | 22 % |
| Reduced VAT rate (1) | 9 % |
| Reduced VAT rate (2) | n/a |
| Super reduced VAT rate | n/a |
| VAT parking rate | n/a |
| Zero VAT rate | no |
Thresholds triggering VAT reporting obligations in Estonia |
|
|---|---|
| Intrastat threshold at introduction | 700 000 € |
| Intrastat threshold on dispatch | 400 000 € |
| Distance selling threshold | As of 1st July 2021, the threshold is EUR 10,000 for all intra-Community distance sales. |
Reporting frequency in Estonia |
|---|
| Intrastat return | monthly depending on threshold |
|---|---|
| EC Sales List (ESL) return | occasional/other |
| VAT returns | monthly |
|---|---|
| Reporting currency | EUR |
VAT-related penalties in Estonia |
|
| Failure to file a VAT return | A fine up to 32,000 euros if the offence is committed intentionally. |
| Late payment of VAT | 0.06% per day of delay of the unpaid VAT. |
| Failure to report ESL/DEB | A fine up to 32,000 euros if the offence is committed intentionally. |
Useful links on VAT in Estonia |
|
| Tax Administration in Estonia | Tax authorities |
| Ministry of Finance in Estonia | Ministry of Finance |
| Check a VAT number in Estonia | Check a VAT number |
| EU VAT Guide | EU VAT Guide |
|---|
Need VAT assistance in Estonia? Contact us now.
A foreign company carrying out transactions in Estonia subject to Estonian VAT, may be required to appoint a tax representative. Established in Estonia, the fiscal representative will fulfill the company’s VAT obligations to the Estonian tax authorities on its behalf: filing VAT returns, paying VAT, claiming VAT refunds and carrying out tax audits.
Even when the appointment of a tax representative is not mandatory, a company may entrust the management of its VAT obligations to a tax agent. The difference between an agent and a tax representative essentially concerns the operator’s degree of responsibility. At EASYTAX, we will in any case use the term “tax representation”.
To secure your operations, lighten your company’s administrative burden, and control tax risks in Estonia.
Intra-Community and Estonian VAT regulations are complex and subject to frequent changes. Declaratory obligations are recurrent and vary in frequency. Penalties for default or delay, as well as errors in flow assessment, can quickly prove financially onerous.
Don’t take risks, don’t pull your hair out: leave the management of your VAT obligations to specialists.
Discover a simple, reliable and efficient tax representation service. EASYTAX handles all your VAT obligations, Intrastat, ESL, and your VAT recovery claims in Estonia, in all European Union countries and certain non-EU countries. You have access to a dedicated consultant, who monitors your file and answers any questions you may have.
Need a tax representative in Estonia? Contact us now.
The VAT rates currently in force in Estonia are as follows:
Need a tax representative in Estonia? Contact us now.
Do you need a VAT fiscal representative in Estonia? Certain operations may require VAT registration and the filing of VAT returns in Estonia:
To check whether your activities give rise to VAT obligations in Estonia, use our VAT simulator .
Need a VAT tax representative in Estonia? Contact us now.
In Estonia , as in other European Union countries, e-sellers must register for VAT:
In addition to VAT registration, e-traders must:
Find out more:
Need a VAT tax representative in Estonia? Contact us now.
You may need a VAT number in Estonia to fulfil your tax obligations in this country. Indeed, certain activities such as sales, purchases and subcontracting operations may require VAT identification.
Estonian VAT is named Käibemaksand the VAT numbers in Estonia have the following structure: EE999999999.
The administrations in charge of VAT in Estonia are the following: Tax authorities, Ministry of Finance.
VAT identification is a relatively simpler formality than setting up a company, but beyond obtaining a VAT number in Estonia, you’ll need to complete and submit periodic declarations to ensure your VAT compliance. Which is why we recommend foreign companies use a fiscal representative or tax advisor.
To check if your activities require VAT identification in Estonia, use our VAT simulator or contact us.
Companies with a VAT number in Estoniamust complete and file dVAT decl arations in Estonia detailing all taxable income (sales) and expenses (costs), at regular intervals:monthly.
Failure to comply with the deadlines imposed by the Estonian authorities for the deposit and payment of VAT will result in the payment of penalties . For this reason, it is recommended that foreign companies use the services of an agent or a tax representative.
These penalties are defined as follows in Estonia:
Need VAT assistance in Estonia? Contact us now.
In addition to VAT returns, companies may be required to provide the Estonian authorities with Intrastat & EC Sales List returns:
Our tax representation services enable you to fulfill all your VAT obligations in all countries of the European Union and beyond. Contact us today.
In principle, a non-resident company in Estonia can recover all or part of the VAT incurred on its expenses.
There are three possible scenarios:
Rely on our VAT recovery services in Europe. Contact us today.
*This information is subject to change without notice.
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