Estonia VAT guide
VAT was first introduced on 1 January 1991.
The Estonian Tax and Customs Board under the supervision of the Ministry of Finance is the responsible authority managing tax matters.
Recent Updates:
- EC Sales List & VAT Return: Will be combined from 2027
- Intrastat Arrivals: No longer required from 1 January 2025
- eInvoicing: Voluntary B2B eInvoicing may be requested by buyers from 1 July 2025
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What is the VAT rate in Estonia?
24%
Standard rate: 24%
Reduced rate: 9% and 13%
Zero rate: 0%
Applies to exports and intracommunity supplies.
Exempt categories: Activities in public interest, such as health, education and other listed activities such as finance and insurance.
VAT registration in Estonia
Domestic businesses
Any person whose turnover exceeds €40,000 from the start of a calendar year is required to register for VAT.
Non-established businesses in Estonia:
Non-established businesses must generally register for VAT in Estonia
- From the first taxable supply where Estonian VAT is due
- No registration threshold applies
- Exceptions may apply where the reverse charge mechanism is applicable
Distance selling
The EU-wide threshold of €10,000 applies to cross-border B2C sales
- Below this threshold, VAT may be accounted for in the seller’s home country
- Above this threshold, businesses must either:
- Register for VAT in Estonia, or
- Use the One Stop Shop (OSS) scheme
Non-EU businesses:
- Must register from the first taxable supply in Estonia where local VAT applies
- No registration threshold applies
- May use the One Stop Shop (OSS) scheme where applicable
Special schemes
Certain transactions are subject to special VAT schemes, including:
- Travel agency services
- Works of art and second-hand goods
- Scrap and investment gold
- Additionally, eligible businesses may opt for the cash accounting scheme.
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eInvoicing requirements
eInvoicing has been mandatory for business‑to‑government (B2G) transactions since 2019.
On 18 September 2024, the Estonian Parliament adopted amendments to the Accounting Act (Bill 428 SE) to expand the use of eInvoicing and align with EU standards.
- B2B eInvoicing: (Buyer choice model) From 1 July 2025, businesses registered as official eInvoice recipients in the Estonian Business Register may require their suppliers to issue structured electronic invoices. Suppliers must comply with such requests
- Accepted standard: The European standard (EN 16931) applies by default, although parties may agree on another format.
- Effective date: 1 July 2025 (mandatory upon buyer request; no universal B2B mandate yet)
Future measures:
- The Ministry of Finance has proposed introducing mandatory B2B eInvoicing for VAT‑relevant transactions from 2027, subject to legislation.
VAT return filing and deadlines
The VAT filing frequency in Estonia is monthly.
The VAT return (Form KMD) must be submitted to the Estonian Tax and Customs Board by the 20th of the month following the reporting period.
VAT penalties
For late payment of VAT, 0.06% interest on the amount due per day is applicable. The tax authority may apply a fixed penalty for late submission at its discretion.
VIES declarations
VIES (VAT Information Exchange System) filing frequency is monthly and VIES must be submitted by the 20th calendar day after the end of the respective month.
Fiscal representatives
Non-EU businesses generally must appoint a fiscal representative to comply with VAT obligations, except for businesses established in Norway.
Intrastat
Registration and submission
Businesses must submit Intrastat reports when movements of goods within the EU exceed specified thresholds.
Intrastat Thresholds:
Dispatches (Exports only)
- Reporting threshold: €325,000
Deadlines and frequency
Intrastat respondents have to submit their declarations monthly. The legal deadline is the 14th calendar day after the end of the reporting month.
IOSS (Import One Stop Shop)
The Import One Stop Shop was introduced in July 2021 as part of the EU VAT e-commerce package to reduce VAT fraud and improve competition between EU and non-EU businesses.
The scheme applies to distance sales of goods imported from third countries with an intrinsic value of up to €150 per consignment, excluding excise goods. The previous low-value import VAT exemption was abolished, meaning VAT is now due on all imports.
Under the IOSS scheme, businesses can register in a single EU Member State to declare and pay VAT on all eligible sales across the EU.
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