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Estonia raises VAT registration threshold

  • VAT
  • 29 January 2016 | Richard Asquith

Estonia raises VAT registration threshold

Estonia is raising its VAT registration threshold for resident businesses from €16,000 to €25,000 per annum.

The change in threshold will cost the country around €2.5 million per annum, but will free many small businesses from the burden of VAT registrations and returns. It will also free staff at the tax administration to focus on tax gathering from larger businesses and anti-fraud measures.

The measure will require approval from the EU Commission, but this should be forthcoming on a historical basis.

The change will not affect non-resident companies, which still face a nil turnover threshold if they have to VAT register for local sales.


VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.