Estonia joined the European Union in 2004, and more recently became a member of the Eurozone in 2011, taking on the currency of the Euro.

VAT rates in Estonia

The standard rate of VAT in Estonia is 20%, and a reduced rate of 9% is available.

VAT registration in Estonia

The VAT registration limit for established businesses is EEK 250,000, although it is zero for non-established businesses.

Distance sales have a limit of €35,000 for VAT registration.

The format for a VAT identification number is: EE 123456789. Every company must hold a number like this in order for accurate taxation.

VAT returns should be filed monthly and annual returns are not required.

Are there any Intrastat thresholds in Estonia?

Yes. There is a limit of €120,000 for dispatches and €190,000 for arrivals.

VAT recovery in Estonia

  • Is VAT recovery permitted for non-established non-EU businesses?

Yes, up to €100,000 for dispatches and €140,000 for arrivals.

  • Are there any non-VAT recoverable expenses?

Yes, recovery of input tax is restricted on certain items, i.e. business entertainment.

Reverse charge applies to the majority of cross border services. It also applies to Estonian VAT registered customers supplied by a non-established business and certain domestic transactions between taxable persons, such as immoveable property.

Requirements and regulations in Estonia

Any company established in a non-EU member country must appoint a tax representative to register for VAT in Estonia.

Use and enjoyment rules do not apply in Estonia.

The period of VAT recovery by tax authorities has a timescale of 3 or 6 years in case of fraud.

Similarly, there is a period of 3 years for VAT deductions and refunds.

Please contact us for further information about paying taxes in Estonia, and a member of our team will be happy to help you.

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