If the turnover is less than 40,000 euros per calendar year, registration is not obligatory, but one may submit an application for registration voluntarily. In order to be registered, the company must maintain proof of the fact that it is engaged in business in Estonia or is about to commence business in Estonia (business plan, business partners, agreements, etc.). To justify it you must demonstrate that your Estonian company is in some way contributing into Estonia either by buying something from Estonia, selling something in Estonia or paying a salary which is taxed in Estonia. The success of the VAT registration mostly depends on the particulars of the client itself and its business.
The general VAT rate is 20%. The reduced rate is 9% and 0% in some cases. The taxable period is one calendar month and as a VAT payer, you need to calculate and pay the VAT amount to the tax authority by the 20th day of the month following the taxable period.
As a VAT payer, you are required to add VAT to the sales price when providing service or selling goods; keep accounting for VAT and retain related documents.
We have broad knowledge and lots of experience with VAT registration. Our fee for VAT registration service includes:
Please be reminded that the Tax and Customs Board has the right to reject any application if the process is not satisfactory, hence we require the payment of the fee in advance, and the fee is not refundable under this circumstance.
Please note that a prerequisite of the VAT registration process is the existence of a business bank account.
Please also note that by requesting the VAT registration service, the arrangement with our firm for accounting services is mandatory. See more: Accounting and tax compliance services.