Value-added tax, known as VAT, is levied on goods and services sold in the course of business, import of goods from non-EU countries and acquisition of goods from European Union countries.
The Estonian VAT number starts with a prefix EE which is followed by nine digits: EE123456789.
Who is taxable person
A taxable person is a person who is engaged in business, which is independent economic activity in the course of which goods or services are supplied, and is registered or required to register for VAT. VAT and all other taxes are administered by the Estonian Tax and Customs Board.
VAT rates in Estonia
The standard VAT rate is 20% from 1 July 2009 which applies to all supplies of goods and services not qualifying for a reduced 9% rate or exemption. The reduced rate is 9% which applies to books, certain periodicals, listed pharmaceutical products and medical devices. The VAT rate on the export of goods, intra- Community supply of goods and certain services is 0% (i.e. exemption with credit). Estonia applies an extended reverse charge mechanism. An option to tax is available in respect of certain exempt supplies.
When VAT registration is required
VAT registration is required if the taxable supplies of Estonian businesses or fixed establishments of foreign businesses in Estonia exceed 16,000 EUR in a calendar year, however voluntary registration is also possible even if 16,000 EUR is not reached. VAT registration is effected within three working days.
Certain transactions of foreign businesses require Estonian VAT registration without any threshold (e.g. intra-Community supply of goods from Estonia). Generally, a VAT representative is only required for the registration of non-EU businesses.
VAT Declaration
The taxation period for VAT is a calendar month. You are required to file a VAT return and pay VAT to the Tax and Customs Board by the 20th day of the month subsequent to the taxation period. All declarations can be submitted via online.