Estonian VAT registration

Resident businesses in Estonia are required to register for value added tax (VAT) once their annual turnover exceeds €40,000. This threshold applies to the total value of taxable supplies made in Estonia.

There is no VAT registration threshold for non-resident businesses. Foreign companies must register for Estonian VAT as soon as they carry out any taxable activity in the country, such as supplying goods or services.

Ecommerce businesses based in other EU countries making cross-border business-to-consumer (B2C) sales into Estonia must register for VAT if their total EU-wide distance sales exceed €10,000 per year, unless they use the OSS scheme.

There are a number of trading situations that typically require a foreign business to register with the Estonian tax authorities. These follow the broad EU VAT rules and include the following:

• Importing goods into Estonia from outside the EU
• Buying and selling goods within Estonia where the customer is not VAT-registered locally (reverse charge does not apply)
• Moving goods to or from other EU member states (intra-community transactions)
• Selling goods to Estonian consumers via distance selling (ecommerce), subject to the EU-wide €10,000 One-Stop Shop (OSS) threshold
• Holding goods in a consignment warehouse in Estonia
• Holding live exhibitions, events, or training sessions in Estonia with paid admission
• Receiving services in Estonia as a non-VAT registered company, under the reverse charge mechanism

• The self-supply of goods

Few companies need to VAT register if they are providing services to local Estonian VAT-registered companies. In most cases, the reverse charge mechanism applies, in accordance with the 2010 EU VAT Package reforms.

Note that providers of electronic, broadcasting, or telecom services to consumers in Estonia may register under the One-Stop Shop (OSS) scheme in any EU country, enabling them to report VAT due in Estonia via a single EU VAT return.

To obtain an Estonian VAT number, businesses must provide the following documentation to the Estonian Tax and Customs Board (Maksu- ja Tolliamet):

• Certificate of incorporation from the business’s home country
• Articles of association
• VAT certificate from the business’s home country (if applicable)
• Description of business activities and evidence of taxable activity in Estonia
• Proof of the business’s Estonian address (if available)
• Details of fiscal representative, if required
• Identification documents of company directors or authorised signatories

For non-EU businesses, appointing a fiscal representative in Estonia is mandatory. The representative is jointly liable for the foreign business’s VAT obligations.

Businesses must submit their VAT registration applications to the Estonian Tax and Customs Board. This can be done:

• Online via the Estonian e-Tax/e-Customs portal
• Or via email or post if the business does not have access to the online system

Processing times vary, but it typically takes one to two weeks for applications to be reviewed and the VAT number issued.

Once approved, a VAT number is issued in a standard EU format.

This number must be displayed on all invoices and used for intra-EU transactions reported via the VAT Information Exchange System (VIES).