2024 Guide – VAT in Estonia

Appoint a fiscal representative in Estoniaand make sure to be 100% VAT compliant

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.

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.

Appointing a tax representative or agent is sometimes an obligation, always a convenience.

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”.

Why entrust your VAT obligations in Estonia to a tax representative?

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.

For VAT compliance in Estonia, choose EASYTAX

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.

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 VAT rates currently in force in Estonia are as follows:

  • 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

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.

When do e-sellers need to register for a VAT number in Estonia?

In Estonia , as in other European Union countries, e-sellers must register for VAT:

  • when the overall threshold for intra-Community distance selling of 10,000 euros is exceeded, and they have not opted to pay 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 rates in Estonia: standard rate (22 %), 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.

Find out more:

Need a VAT tax representative in Estonia? Contact us now.

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.

Estonian VAT 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 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:

  • Penalties for failure to file a VAT return in Estonia: A fine up to 32,000 euros if the offence is committed intentionally.
  • Penalties for late payment of VAT in Estonia: 0.06% per day of delay of the unpaid VAT.

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:

  • 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 introduction in Estonia (700 000 € excl.VAT per annum)
    – Intrastat threshold on dispatch in Estonia (400 000 € excl.VAT per annum).
    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.

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:

  • The company 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 electronic portal of the tax authorities 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.

Rely on our VAT recovery services in Europe. Contact us today.


*This information is subject to change without notice.

OTHER COUNTRY GUIDES

Need help?

VAT simulator

VAT SIMULATOR

Do you need a VAT number and a fiscal representative? in Estonia.
Find out with just a few clicks.

Expert

Contact
an expert

Are you growing your business
and looking to ensure
your VAT compliance in Estoniaquickly and easily?

VAT news

in Estonia

Easytax Contact
A SINGLE POINT OF CONTACT

For all European Union countries and some third countries.

For all European Union countries and some third countries. For all your VAT, Intrastat & ESL obligations, and your VAT recovery requests.

Newsletter

NEWSLETTER

Get the latest news on VAT regulations in Europe directly in your mailbox.

We respect your personal data