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Conclude contract with Estonian Tax and Customs Board
For the use of e-services, a legal or an authorized representative of a business company has to conclude a contract for the use of e-Tax Board/e-Customs with the Estonian Tax and Customs Board.
Then a company can pay state taxes, payments and other monetary obligations (interest, fines, penalties) to the Estonian Tax and Customs Board by a bank transfer (for example import duties) and using the payment link in the e-Tax/e-Customs. For more detailed info visit Estonian Tax and Customs Board.
If the turnover is below that limit, registration is not obligatory. The same rules apply to a sole trader. VAT ID is not granted always automatically, and further investigation might be made by the tax authorities.
The principal mechanism for collecting VAT requires a VAT-registered company to charge VAT on the goods or services supplied, to take credit for VAT paid on business expenditures, and pay the net VAT to the tax authorities. The standard VAT rate is 20% and reduced VAT rates are 9% (medicine supplies, magazines, accommodation services) and 0%.
All tax returns (VAT, income/social and VIES) must be submitted once per month in case a VAT ID is registered (even if you do not have activities at all).
Monthly tax reports are:
Fill in the legal assistance request form
For the use of e-services, a legal or an authorized representative of a business company has to conclude a contract for the use of e-Tax Board/e-Customs with the Estonian Tax and Customs Board.
Then a company can pay state taxes, payments and other monetary obligations (interest, fines, penalties) to the Estonian Tax and Customs Board by a bank transfer (for example import duties) and using the payment link in the e-Tax/e-Customs. For more detailed info visit Estonian Tax and Customs Board.
Registering as a VAT payer
If the taxable annual turnover of your company exceeds 40 000 euros, you are required to register the company with the Tax and Customs Board as a VAT payer.If the turnover is below that limit, registration is not obligatory. The same rules apply to a sole trader. VAT ID is not granted always automatically, and further investigation might be made by the tax authorities.
Where to verify whether the company has VAT ID?
If you want to know whether your client, customer, or business partner has valid VAT id you can verify the data:- Estonian value-added tax identification number (VAT ID) verification.
- European Union value-added tax identification number (VIES VAT number) verification.
VAT explained
VAT (value-added tax) is levied on all levels of the supply of goods and services, unless specifically exempt by law.The principal mechanism for collecting VAT requires a VAT-registered company to charge VAT on the goods or services supplied, to take credit for VAT paid on business expenditures, and pay the net VAT to the tax authorities. The standard VAT rate is 20% and reduced VAT rates are 9% (medicine supplies, magazines, accommodation services) and 0%.
Who is subject to VAT?
In general, a person subject to VAT is an individual or a company who supplies or intends to supply taxable goods and services and where the income that arises is categorized as business income. VAT registration obligation rises, when a person’s taxable supply exceeds 40 000 euros.All tax returns (VAT, income/social and VIES) must be submitted once per month in case a VAT ID is registered (even if you do not have activities at all).
Monthly tax reports are:
- Income tax return - latest on the 10th day of the next month
- VAT return - latest on the 20th day of the next month
Fill in the legal assistance request form