Estonian VAT rates

As a member of the European Union (EU), Estonia follows EU rules on value added tax (VAT) compliance. Estonia has the flexibility to set its own standard VAT rate, as long as it’s above the EU minimum of 15%.

The standard VAT rate in Estonia is 24%. Estonia also applies reduced rates of 13%, 9%, and, in specific cases, a zero rate (0%). These rates apply depending on the type of goods or services supplied.

Suppliers of goods or services that are VAT-registered in Estonia must apply the appropriate VAT rate, issue compliant invoices, and file VAT returns via the Estonian Tax and Customs Board.

Resident businesses must register for VAT if their taxable turnover exceeds €40,000 per year. Once this threshold is exceeded, registration must be submitted within three business days.

Non-resident businesses with taxable activities in Estonia must register for VAT regardless of turnover. There are a number of trading situations that require a foreign business to register with the Estonian tax authorities:

• Importing goods into Estonia from outside the EU

• Buying and selling goods within Estonia where the customer is not VAT-registered

• Moving goods to or from other EU member states

• Selling goods to Estonian consumers via ecommerce

• Holding goods in a consignment warehouse in Estonia

• Holding live exhibitions, events, or training sessions

• Receiving services in Estonia as a non-VAT registered company, under the reverse charge mechanism

• The self-supply of goods

   

Cross-border business-to-consumer (B2C) sellers based in the EU are subject to the €10,000 EU-wide threshold and can use the One-Stop Shop (OSS) to simplify VAT compliance.

Most businesses file VAT returns monthly. Businesses with turnover under €100,000 may request to file quarterly. Returns are due by the 20th of the month following the end of the reporting period.

For more information on VAT returns in Estonia, visit our Estonia VAT returns page. 

In Estonia, the tax point (time of supply) for VAT is generally the date the goods are delivered or services completed. If payment is received in advance, that payment date becomes the tax point for the amount received.

For imports, VAT is due at the time of customs clearance, unless deferred accounting for import VAT applies.

Estonia applies the standard VAT rate of 24% to most food products. There is no separate rate for immediate vs. deferred consumption. Alcoholic beverages are also taxed at the standard rate of 24%.

Certain goods and services are exempt from VAT in Estonia, including:

• Financial and insurance services

• Health care and social services

• Education

• Postal services

• Rental of immovable property (in most cases)

• Certain cultural and sports services

   

Exports of goods and intra-EU supplies are zero-rated (0%).

Estonia follows the EU-wide simplification rules for call-off stock. This allows a supplier from another EU country to transfer goods to Estonia without VAT registration if:

• The customer is identified and VAT-registered in Estonia

• Goods are transferred with the intention of sale within 12 months

• The transaction is reported in the EC Sales List (ESL) and Intrastat

   

For consignment stock, where the customer is not pre-identified, VAT registration in Estonia is generally required.

Businesses operating in Estonia may recover input VAT on goods and services used for taxable business activities. This includes:

• Import VAT

• Business-related travel expenses

• Marketing and professional service costs

Estonian businesses recover VAT through their regular VAT returns.

EU businesses not registered in Estonia can apply for a refund using the 8th Directive via their home country’s portal.

Non-EU businesses can apply for a refund under the 13th Directive, subject to reciprocity agreements and eligibility conditions.

Estonian businesses that supply goods or services to other EU countries must submit an EC Sales List (ESL). The ESL must include:

• Customer’s EU VAT number

• Value of goods or services supplied

• Reporting period

• Transaction type

   

The ESL is filed monthly by the 20th of the following month.

Businesses involved in intra-EU trade may be required to file Intrastat declarations. Thresholds are updated annually by Statistics Estonia. As of 2025, the thresholds are:

• Arrivals: €400,000

• Dispatches: €270,000

   

Declarations are due by the 14th of the following month.

Estonia has adopted the OECD’s Standard Audit File for Tax (SAF-T) framework for digital reporting and audits.

Large businesses may be required to provide SAF-T files during audits. The file includes:

• General ledger and journals

• Sales and purchase invoices

• Inventory records

• Fixed assets and depreciation

   

These files must be provided in a structured XML format and comply with Estonian SAF-T standards upon request from the tax authorities.