VAT (Value Added Tax) issues are key for any Estonian company, especially those engaged in international trade or managed via e-Residency. Correct VAT registration in Estonia, understanding the rates, and knowing the refund process directly impact your profit and financial reporting. Violating VAT rules leads to serious fines and issues with the Tax and Customs Board.

Fedelta Accounting is your expert in tax planning. We ensure the timely VAT registration of your Estonian company and assist in calculating and filing VAT declarations (KMD). Our team has deep knowledge regarding the application of the 0% rate and VAT refund procedures for operations within the EU and third countries. Do not risk the financial legality of your business – entrust VAT management to professionals. Explore our accounting service plans to receive comprehensive support.

Mandatory VAT Registration
For an Estonian company (OÜ), VAT registration is not always voluntary.

• Mandatory Threshold: A company must register if its taxable turnover exceeds €40,000 in a calendar year.
• Voluntary Registration: You can register voluntarily even before reaching this threshold if it is beneficial for working with European partners.

🔗 Want to ensure your company meets all tax requirements? Contact us for an expert tax consultation: 🔎 LEARN MORE

VAT Rates in Estonia
The following main VAT rates apply in Estonia:

• Standard Rate (24%): Applies to most goods and services sold within Estonia.
• Reduced Rate (9%): Used for specific categories (e.g., periodicals).
• Zero Rate (0%): Applies to the export of goods, intra-community supply within the EU, and certain international services.

Declarations and Deadlines

• Deadline: The VAT declaration (KMD) must be submitted to the Tax and Customs Board monthly, no later than the 20th day of the following month.
• Complexities: Special attention is required when filling out the VD form (Intrastat) for intra-EU transactions to avoid errors when applying the 0% rate.

VAT Refund
The possibility of a VAT refund is a significant advantage for exporters and companies providing services within the EU:

• Overpayment: If the amount of input VAT exceeds the output VAT, the state is obligated to refund the difference.
• Requirements: The tax refund process requires flawless documentation and proof of the legality of operations, including transport documents and contracts.

How Fedelta Accounting Ensures Your Safety

We guarantee the correct classification of all your operations, timely filing of declarations, and the fastest possible VAT refunds, minimizing your risk during tax audits.