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This guide provides an overview of VAT (Value Added Tax) in Estonia, covering applicable rates, registration requirements, invoicing rules, compliance obligations, and filing deadlines. It is intended for businesses engaging in transactions within Estonia or with Estonian customers.
Estonia’s VAT system is governed by the VAT Act, which aligns with the EU VAT Directive. VAT applies to most goods and services within Estonia, as well as on imports.
Euro (€)
EE followed by 9 digits (e.g., EE123456789)
Yes, required for non-EU businesses conducting VAT-related activities in Estonia.
Yes, available for businesses below the threshold.
| Rate | Rate Type | Description |
| 22% | Standard Rate | Applies to most goods and services |
| 9% | Reduced Rate | Applies to medical equipment and products for handicapped people, books and e-books, periodicals and e-periodicals |
| 13% | Reduced Rate | Applies to accommodation and accommodation services with breakfast, excluding any goods or services accompanying such services |
| 0% | Zero Rate | Applies to exports of goods, listed exported services, intra-Community supplies of goods, seagoing vessels, equipment, spare parts and fuel for seagoing vessels, aircraft operating on international routes, equipment, spare parts and fuel for such aircraft, etc. |
| Business Type | VAT Registration Threshold |
| Resident Businesses | EUR 40,000 per annum |
| Non-Established Businesses | Not required to register if all supplies are under the reverse-charge mechanism; must register if they have a fixed establishment in Estonia and make taxable supplies exceeding EUR 40,000 from the beginning of the calendar year |
| Frequency | Filing Deadline | Payment Deadline |
| Monthly | 20th day of the following month | 20th day of the following month |
| VAT on Cross-Border Electronically Supplied Services | Yes |
| VAT Rate on Digital Services | 22% |
| Threshold for Registration | EUR 10,000 per calendar year for EU-based businesses; no threshold for non-EU businesses |
| Place of Supply | Generally, the country of consumption where the goods are shipped to or where the buyer resides, subject to any “use and enjoyment” provisions |
| VAT on B2B Sales | Recipient accounts for VAT using the reverse charge. |
| VAT on B2C Sales | Supplier charges VAT at the rate applicable in the customer’s country. If sales are below the EUR 10,000 threshold (effective from 1 July 2021), different rules may apply. VAT can be reported using the One-Stop-Shop (OSS) mechanism. |
Estonia applies VAT on digital services based on the consumer’s location, generally utilizing the OSS system for EU cross-border services.
For B2G (business-to-government) transactions, e-invoicing is mandatory in Estonia, and invoices must comply with the EU standard format. For B2B and B2C supplies, electronic invoicing is allowed but not mandatory.
Electronic filing is allowed but not mandatory in Estonia; however, digital reporting is the preferred method for filing VAT returns. There are no requirements for annual returns or transactional reporting in Estonia.
Disclaimer: This guide is for informational purposes only and may not cover all aspects of Estonian VAT. Consult one of our tax professionals for specific guidance regarding your business.
| Pos. | Username | Country | Score |
|---|---|---|---|
| 1 | marko.kangasmaki@solnet.group | Finland | 100 % |
| 2 | Connor | Afghanistan | 92 % |
| 3 | Plrstrive | United Kingdom | 92 % |
| 4 | elkeg | Netherlands | 92 % |
| 5 | Cait | South Africa | 92 % |
| 6 | Chilli Dev | South Africa | 92 % |
| 7 | Brett | South Africa | 83 % |
| 8 | Quizard | South Africa | 83 % |
| 9 | Quinny Ness | South Africa | 75 % |
| 10 | Bronwynm | South Africa | 75 % |
