Estonia VAT Information: rates, registration number

Goods

VAT rate

A normal rate of 20% (from 1/07/2009). The rate of 9 percent is applied to goods intended for medical purposes, some books, and educational literature.

Threshold

A total threshold of 10k euros has been introduced since the first of July for the gross supply of remote sale of goods within the Community (to all Member States together) and digital services provided to end-users of other EU states.

Deductible VAT

For some completed transactions, you can refund the VAT paid:

Transactions for the delivery of goods or services carried out within the country
Purchase of goods and transactions within the EU, considered as such
Import (commodity) operations

Registration procedure

For registration you need to submit the following documents to the tax service:

An application
An identity document
A document certifying your authority

The Estonian Tax and Customs Board may request additional documents.

Tax representative

If the business is based outside the EU, then a tax representative must be appointed to register as a VAT taxpayer.

VAT returns filing and VAT payment date

The tax period is a calendar month, and the tax return together with the appendix is submitted to the tax authority before the 20th day of the month following the tax period, on paper or in electronic form. The deadline for paying VAT coincides with the deadline for filing a tax return.

Penalty

The taxpayer is obliged to calculate and pay the tax within the specified period, otherwise, from the day following the delay, the tax authority will charge interest (interest rate of 0.06% per day).

Digital services

VAT standard rate

20%

The 5% rate applies to press publications. The 20% VAT rate will continue to apply to press publications containing mainly advertising or private advertisements or mainly erotic or pornographic content or video or music content.

Threshold

B2C sales

The threshold for all EU countries is unified: 10 thousand euros. If a digital supplier stays below €10,000 selling cross-border per year, he can charge the VAT rate of his local country. As soon as he passes €10,000 annual sales limit, he is obliged to charge the VAT rate of his customer’s country. For Non-EU digital suppliers threshold is zero.

B2B sales

In the case of B2B sales VAT is always reverse-charged.

Pieces of evidence

General EU conditions to determine the location of the client:

Address of the buyer of the service
Shipping Address
Phone code +372
IP address
The location of the customer’s landline phone through which the service is provided
Estonian legislation provides special rules for certain situations

List of electronic services

A digital product is any product that is stored, delivered, and used in an electronic format. They are goods or services that the customer can receive by email, download from the Internet or use directly on the website. An approximate, but not exhaustive, list of such products:

Sound, visual or audiovisual products
Downloadable and streaming music, such as buying MP3s or using music apps
Software stored in cloud storage and product s as services, abbreviated as Saas, PaaS, IaaS
Websites, Website Hosting Services, and Internet Service Providers
Advertising published on the Internet

Registration procedure

Persons who wish to apply for a special regime submit an application for the application of a special regime to the Department of Taxes and Customs.
A taxable person of Estonia submits an application to the e-MTA, where you should select “Registers and inquiries” – “Registration” – “Registering as a user of special schemes for e-commerce and services (OSS/IOSS)”.

Registration rules for companies outside the EU

Submit a free-form application for registration of a Company in the Estonian Register of Taxable Persons in order to use the MOSS special scheme. The following shall be appended to an application:

A copy of the articles of association of the legal person or another legal act regulating the activities of the legal person
A document certifying the authorization of the responsible person.

Your company will receive a registration code. If you want to get access to e-MTA electronic services, you need to apply for a digital identity card of an electronic resident of Estonia. After that, you can submit an electronic application for MOSS registration at the e-MTA.

Registry maintenance

10 years.

Fill out VAT declarations

The MOSS statement must be filed no later than the 20th day of the month following the quarter even if the due date falls on a public holiday or on a weekend.

This VAT return can only be filed electronically at the e-MTA by selecting “Taxes” > “Value added tax” > “Declaration of digital services (MOSS)”. The declaration data can be entered manually by filling in the form on the screen or by uploading an xml file.

The return can be completed continuously until the end of the tax period, but it is impossible to file a return. The data entered can be saved and the return will remain in the “IN PREPARATION” status. At the end of the tax period, the return can be confirmed and filed.