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VAT in Estonia

VAT Guide for EU countries within Europe

VAT in Estonia

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.

Here you can find the specifics of VAT regulations in Estonia, which work alongside the harmonised framework of the EU as explained in our guide to intra-Community VAT obligations.

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 20 %
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 230 000 EUR
Intrastat threshold on dispatch 130 000 EUR
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 declaration monthly depending on threshold
EC Sales List (ESL) declaration occasional/other
VAT returns monthly
Reporting currency EUR

VAT-related penalties in Estonia

Failure to file a VAT return Penalty not specified.
Late payment of VAT Penalty of up to EUR 3,200 and daily default interest of 0.06%.
Failure to report ESL/DEB Penalty not specified.

Useful links on VAT in Estonia

Tax Authorities 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
Estonia has been a member of the European Union since 1st May 2004 and joined the Eurozone on 1st January 2011.

The Estonian economy is one of the most liberal in Northern Europe. It is based on the export of machine tools, electrical and electronic equipment, wood and textile products and services related to new information technologies.

The Estonian Value Added Tax legislation was introduced in 1991 and is governed by the VAT Act of 2004, which transferred EU directives into local law.

The current VAT rates in Estonia are as follows:

  • Standard VAT rate: 20 %
  • 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

Certain transactions in Europe may require registering for VAT and filingVAT returns in Estonia:

To check if your activities involve VAT obligations in Estonia, use our VAT simulator or contact us.

When do e-traders need to register for VAT in Estonia?

In Estonia just like in other European Union countries, e-traders must register for VAT:

  • when the overall threshold of EUR 10,000 for Intra-Community distance selling is exceeded and they have not opted to pay the VAT in Estonia via the One Stop Shop,
  • or when they hold a stock of goods in Estonia and must report the stock supply transactions.

What are the VAT obligations for e-traders in Estonia ?

In addition to VAT registration, e-traders must:

  • Apply the defined VAT ratesin Estonia: standard rate (20 %), reduced rates 1 and 2 (9 % and n/a).
  • Declare stock transfers between marketplaces‘ storage platforms, as well as the supply translactions for these stocks.
  • File periodic returns (VAT returns, intrastat, ESL), to ensure their VAT compliance in Estonia.

> Learn more about the VAT & e-commerce regulations and the VAT regime for logistics platforms in Europe.

Why identify yourself to VAT in Estonia?

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. To check if your activities require VAT identification in Estonia, use our VAT simulator or contact us.

VAT Estonian is named Käibemaksand the VAT numbers in Estonia have the following structure: EE999999999.

How do I get a VAT number in Estonia?

The administrations in charge of in Estonia VAT are the following: Tax authorities, Ministry of Finance.

Registering for VATis a relatively simple formality compared to setting up a company, but in addition to obtaining a VAT number in Estoniayou’ll need to file periodic VAT returns to ensure your VAT compliance. Which is why we recommend foreign companies use a fiscal representative or tax advisor.

Companies with a VAT number in Estonia must complete and submit VAT returns in Estonia detailing all taxable income (sales) and expenses (costs), with the following periodicity: 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:

  • Penalties for failure to file a VAT return in Estonia: Penalty not specified.
  • Penalties for late payment of VAT in Estonia: Penalty of up to EUR 3,200 and daily default interest of 0.06%.

In addition to VAT returns, companies may be required to provide the Estonian authorities with Intrastat & EC Sales List returns:

  • Intrastat returns enable the Estonian authorities to compile foreign trade statistics.
    Companies must file these Intrastat returns as soon their turnover reaches the threshold.
    Intrastat threshold at introductio n in Estonia (230 000 EUR HT/an)
    – Intrastat threshold on dispatch in Estonia (130 000 EUR HT/an).
    Failure to comply with the deadlines imposed by the Estonian authorities for the filing of these Intrastat returns wil incur a penalty payment for the company.
  • The sales summary returns (EC Sales List or ESL) or purchases (EC Purchases List or EPL) in Estonia are for tax purposes.
    Failure to comply with the deadlines imposed by the Estonian authorities for the filing of these ESL returns wil incur a penalty payment for the company.

In principle, a non-resident company in Estonia can recover all or part of the VAT incurred on its expenses.

There are three different scenarios:

  • The company, whether it is established within the European Union or not, is already registered for VAT in Estonia, or is obliged to register for VAT in Estonia. In this case, it must apply for a VAT refund via the periodic VAT return filed in Estonia, according to a periodicity:monthly.
  • The company is established within the European Union, is not registered for VAT in Estonia and is not required to do so. In this case, a VAT refund should be requested via the tax authorities’ electronic portal in the country where the company is established.
  • The company is not established within the European Union and is not required to register for VAT in Estonia. In this case, they must use the services of a fiscal representative to carry out what is required by the Estonian authorities on their behalf.
    > Learn more about our VAT recovery services.


*This information is subject to change without notice.

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