Estonia VAT registration
What are the Estonian VAT registration thresholds?
For foreign businesses trading in Estonia that are VAT/GST/Tax registered in their home country, the VAT registration threshold is nil. Businesses are required to register from the time they make their first supply.
For companies (that are EU VAT-registered) selling goods over the internet to consumers in Estonia (distance selling), the threshold is €35,000 per annum.
Is an Estonian fiscal representative or agent required?
In accordance with the EU VAT Directive, a local Estonian fiscal representative or agent is not required by a company resident in another EU member state. However, a fiscal representative, who is jointly liable for the Estonian VAT, is required for non-EU companies. An exception to this is the supply of services to Estonia over the internet by a non-EU company. In this case the company would be required to register for VAT directly with the Estonian tax authorities.
What information is required to get an Estonian VAT number and registration?
The Estonian tax authority will require the appropriate forms (application forms KR and R2) to be completed and submitted with the following documentation:
- VAT certificate to prove the business is registered for VAT elsewhere in the EU (if appropriate)
- Articles of Association
- An extract from the company’s national trade register
- Evidence that the business will carry out taxable supplies in Estonia
- A copy of the contract with the fiscal representative (if appropriate)
- Identity card or passport of controlling management
Where are Estonian VAT registrations submitted?
Foreign companies registering for an Estonian VAT number must submit their application to the Tax Management Department at the Northern Tax and Customs Centre. Forms may not be delivered by post or e-mail but must be submitted by hand. This may be done by a fiscal representative or other authorized person. Provided all the necessary documents have been submitted, the registration process will usually be completed within 5 days.
There are no penalties for a delayed Estonian VAT registration if the VAT due has been paid. However, a penalty of up to EUR1,300 will apply if neither registration or payment has been received after a further registration deadline has been issued. The authorities may impose an additional penalty of up to EUR2000 if a subsequent deadline is missed.
What is the format of an Estonian VAT number?
A VAT number is assigned once registration has been completed. All EU member states have a fixed format for their VAT numbers. In Estonia it consists of the prefix EE followed by nine digits.
Estonian VAT Number Format
Once a business has its VAT number, it is free to commence trading, and charging Estonian VAT. It must comply with the Estonian VAT compliance rules, and file regular returns (see Estonian VAT Returns briefing).