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Estonia

 

News & Tips

VAT refund [Tip]

A VAT credit is in principle granted within 30 calendar days from the date on which the VAT return was due. However, Estonian VAT authorities may in exceptional cases [e.g. in case of a tax audit] extend the term of a refund up to 90 calendar days.


VAT reporting [Tip]

The first taxable period is the period from the date of VAT registration until the end of the same month. If the number of calendar days in the first tax period is less than fifteen, you may declare the supply of the first period together with the supply of the following tax period and submit one return concerning two tax periods.


New form for periodical VAT returns [News 01/01/2015]

The periodical VAT return has been modified. The new form must be used as from 01/01/2015.


 More VAT News & Tips - Estonia

DOING BUSINESS IN ESTONIA [EE] - VAT GUIDE

 

General

VAT Directive

Estonia

What is the structure of the VAT number?

Each individual VAT identification number shall have a prefix in accordance with ISO code 3166 - alpha 2 - by which the Member State may be identified.

 

Estonian VAT numbers have 11 characters [EE + 9 digits]. The last digit is a control number.

 

What is the local name of the tax?

 

Käibemaks [KM]

 

VAT rate

VAT Directive

Estonia

 VAT rates

Member States must apply a standard VAT rate [not lower than 15%] which must be the same for the supply of goods and for the supply of services.

Member States may apply either one or two reduced rates [not lower than 5%] only to supplies of goods or services as listed in the Annex III of the VAT Directive.

 

Estonia applies a standard VAT rate of 20% and one reduced rate of 9%.

 

See VAT rates applied in the EU.  

VAT return

VAT Directive

Estonia

How is the tax period determined? 

The tax period shall be set by each Member State at one month, two months or three months.

Member States may, however, set different tax periods provided that  those ones do not exceed one year. 

Monthly

Your company has to report its VAT position by filing periodical VAT returns on a monthly basis [standard tax period - art. 27 of the Estonian VAT Act].

 

When should periodical VAT return be filed?

The VAT return shall be submitted by a deadline to be determined by Member States.

That deadline may not be more than two months after the end of each tax period.

 

Periodical VAT returns must be submitted by electronic means to the Estonian VAT authorities before the 20th day of the month [20 of N+1] following the tax period [month] to which it relates.

Statement

VAT Directive

Estonia

Annual recapitulative statement

Is this requirement laid down in the country and what is the filing deadline?

Member States may require taxable persons to submit a return in respect to all transactions carried out in the preceding year.

That return shall provide all the information necessary for any adjustments.

 

Your company is not required to file any summarizing annual VAT return in Estonia.

Recapitulative statement of intra-EU supply of goods [European Sales Listing - ESL]

Are quarterly filings allowed by the country and what is the filing deadline?

The recapitulative statement shall be drawn up for each calendar month.

However, Member States, in accordance with the conditions and limits which they may lay down, may allow taxable persons to submit the recapitulative statement on each calendar quarter where the total quarterly amount of intra-EU supplies of goods does not exceed either in respect of the quarter concerned or of any of the previous four quarters the sum of € 50.000 or its equivalent in national currency.

The recapitulative statement shall be submitted within a period not exceeding one month.

 

The recapitulative statement [ESL] must be drawn up for each calendar month and submitted to local VAT authorities by the 20th of the month after the end of the reporting period [month].

Filing the statement on a quarterly basis is not possible.

Payment

VAT Directive

Estonia

What is the payment deadline?

Any taxable person liable for the payment of the VAT must pay the net amount of the VAT when submitting the VAT return. 

Member States may, however, set a different date for payment of that amount.

 

 

The VAT due should be paid by filing deadline for the VAT return [20th day of the month after the tax period].

Are interim payments required?

Member States may require interim payment to be made.

Interim payments are not required.

VAT refund

VAT Directive

Estonia

VAT refund for companies VAT registered in the country.

Is any VAT credit automatically carried forward or refunded?

Where, for a given tax period, the amount of deductions exceeds the amount of VAT due, the Member State may, in accordance with conditions which they shall determine, either make a refund or carry the excess forward to the following period. However, Member States may refuse to refund or carry forward if the amount of excess is insignificant.

 

 A VAT credit is in principle automatically carried forward to the next tax period, unless a tax refund has been applied for.

Special measures for foreign companies

VAT Directive

Estonia

Optional reverse charge [art. 194 of the VAT Directive] for non-resident supplier.

SUPPLY OF GOODS

Member States in which the VAT is due may provide that the person liable for the payment of VAT is the person to whom the goods or services are supplied where the transaction is carried out by a taxable person who is not established in the country in which the VAT is due.

Reverse charge  is applicable to all supplies of goods carried out by a supplier not established in Estonia [regardless VAT registered or not in Estonia] to a taxable person VAT registered in Estonia [regardless he is established or not in Estonia].

Optional reverse charge [art. 194 of the VAT Directive] for non-resident provider. 

SUPPLY OF SERVICES

Member States in which the VAT is due may provide that the person liable for the payment of VAT is the person to whom the goods or services are supplied where the transaction is carried out by a taxable person who is not established in the country in which the VAT is due.

Reverse charge  is applicable to all  supplies of services carried out by a supplier not established in Estonia [regardless VAT registered or not in Estonia] to a taxable person VAT registered in Estonia [regardless he is established or not in Estonia].

Have simplification measures been taken to avoid registration of the foreign company for the goods held on consignment in the country?

 

No

Do special arrangements apply to "call-off-stock"?

 

Yes

 

Triangulation can be applied when the middleman (B) is VAT registered [as a non-established company] for others supplies in the 3rd country [Member State of destination]?  

 Triangulation regime ABC cannot be applied when the middleman B is also VAT registered in Estonia [Member State C]. Furthermore, triangulation scheme is not applicable in chain transaction involving four or even more parties.

 

VAT on import

VAT Directive

Estonia

VAT warehousing regime

Member States may exempt the importation of goods and the supply of goods which are intended to be placed under warehousing arrangements other than customs warehousing.

 

Yes

Estonia has introduced VAT warehousing regime.

VAT on importation – Postponed accounting via the VAT return.

Is it possible for a company to pay the import VAT via the periodical VAT return?

Member States may provide that VAT on importation does not need to be paid at the time of importation on condition that it is entered as such in the VAT return  to be submitted.

 

Yes

Postponed accounting via the VAT return is possible under specific conditions. A deferred payment for VAT and customs [similar delay] is also applicable.

 

Miscellaneous

VAT Directive

Estonia

Intrastat Threshold  

Dispatches: € 130,000

Arrivals : € 200,000

 

Distance Sales - Threshold  

 € 35,000

See various thresholds applied in the EU [last update :01/03/2014].

 

Ministry of Finance    website

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