VAT & Tax Services

VAT & Tax Services for Estonian Companies

Estonian VAT looks simple until you add EU customers, digital sales, or a rate change - then a single misclassified invoice can mean a correction, interest, or a query from the Tax Board. We take care of your VAT and tax obligations end to end, and every return is prepared and checked by your own accountant, so filings are right the first time.

We work with local Estonian companies, e-resident OÜs, e-commerce sellers, and cross-border service providers - in Estonian, Russian, and English.

When You Must Register for VAT

Registration becomes mandatory once your taxable turnover exceeds €40,000 in a calendar year. You then have three working days to register; missing the deadline can bring fines of up to €3,200. Voluntary registration before the threshold is also possible and is often worthwhile if you sell to EU businesses or want to recover input VAT on start-up costs. We track your running turnover and tell you before you hit the limit - not after.

Estonian VAT Rates in 2026

• 24% standard rate - in force since 1 July 2025, indefinitely, with no VAT changes planned for 2026.
• 13% and 9% reduced rates - for specific goods and services (e.g. accommodation, certain publications and medicines).
• 0% rate - intra-EU supplies and exports.

We apply the correct rate to every transaction and adjust cleanly whenever the law changes.

How VAT Registration Works, Step by Step

1. Turnover check. We track taxable turnover from the start of the calendar year against the €40,000 threshold, so the registration date is a decision rather than a discovery.
2. Application. Filed through e-MTA with the Tax Board, stating the date the obligation arose or, for voluntary registration, the date you want to start.
3. Proof of business activity. For voluntary registration the Tax Board usually asks what you actually do - contracts, invoices, a supplier agreement or a business plan. Thin answers here are the single most common reason a registration stalls.
4. Decision. Normally within five working days of a complete application. You receive an Estonian VAT number in the format EE plus nine digits.
5. First return. KMD is then due monthly by the 20th, including for months with no activity - a nil return is still a return.

An Estonian VAT number is not automatically an EU cross-border one. If you sell B2B into other member states, we also check your entry in VIES, because customers will validate it before applying the reverse charge.

Selling Online Across the EU

E-commerce is where Estonian VAT stops being simple, because the place of supply moves to the customer’s country once you pass the EU-wide distance-selling threshold of €10,000 a year for B2C sales of goods and digital services.

• Below €10,000 - you may keep charging Estonian VAT at 24% on B2C sales EU-wide.
• Above €10,000 - VAT is due at the customer’s local rate. OSS lets you declare all of it in one quarterly Estonian return instead of registering in each country.
• IOSS covers goods imported from outside the EU in consignments up to €150, sold to EU consumers - it clears the parcel without VAT collected at the border.
• Marketplace sales. If you sell through Amazon, Etsy or a similar platform, the marketplace is often the deemed supplier and accounts for the VAT itself. That changes what belongs in your return, and getting it wrong double-counts the sale.

Storing stock in another member state - Amazon FBA in particular - creates a local registration obligation that OSS does not cover. We check that before it becomes a retrospective assessment.

Five VAT Mistakes We Fix Most Often

1. Registering late. The obligation starts when turnover passes €40,000, not when you notice. Registration is due within three working days.
2. Reclaiming input VAT on a non-deductible cost. Entertainment and most passenger-car costs are restricted; a company car used privately carries a 50% input-VAT limit.
3. Reverse charge applied without a valid customer VAT number. If VIES does not confirm it on the invoice date, the supply is not zero-rated and the VAT is yours.
4. VD report forgotten. Intra-EU B2B supplies go on the EC Sales List as well as the KMD. Mismatches between the two are an automated flag at the Tax Board.
5. Ignoring OSS thresholds. The €10,000 limit is EU-wide and cumulative, not per country.

Monthly VAT Compliance (KMD & VD)

• KMD (VAT return) prepared, checked and filed by the 20th of the following month
• VD report (EC Sales List) for intra-EU B2B supplies
• Reverse-charge handling on B2B purchases from other EU states
• Credit notes, bad-debt relief and input-VAT adjustments on capital goods

Cross-Border & EU Trade

• OSS registration and quarterly returns for B2C sales across the EU
• IOSS for imported low-value goods sold to EU consumers
• Distance-selling threshold monitoring so you register in the right place
• Intrastat reporting once the arrivals/dispatches thresholds are exceeded

Beyond VAT - Your Whole Tax Position

VAT rarely sits alone. We keep the whole tax picture consistent: corporate income tax (0% on retained profit, 22/78 on distributions), payroll taxes via TSD, and fringe-benefit treatment - so your VAT return, annual report and payroll all tell the same story to the Tax Board.

How We Work

1. You email invoices and bank statements by the 5th (or share a Google Drive folder).
2. We prepare and reconcile draft reports by the 15th for your review.
3. Final declarations are submitted by the 20th - VAT to the Tax Board, VD alongside.

What VAT Compliance Costs

KMD preparation and filing is part of the monthly package rather than a separate line - it is included from the Start tier at €239 per month, which also covers TSD, e-invoice processing. OSS and IOSS filing is quarterly and agreed on top, because it depends on how many countries you sell into. Full tiers are on the pricing page.

Why Choose ProfBalance

• Your own accountant - a named person who knows your business, not a ticket queue.
• No hidden fees for corrections or amendments.
• Trilingual - English, Estonian, Russian, in Tallinn or fully remote.
• Paperless - email or Google Drive, with a free initial VAT compliance review.

Who Handles Your VAT

Your returns are prepared by Maria, our chief accountant - over ten years in Estonian tax accounting, including e-resident and cross-border companies, working in Estonian, Russian and English.

If you also employ people, VAT and payroll filings share the same monthly cycle, and both feed the annual report. Selling crypto assets changes the VAT treatment - see crypto accounting.

Sources: Estonian Tax and Customs Board - VAT rates, registration as a VAT payer and filing VAT returns. Checked 29 July 2026.