VAT in Estonia guide

VAT rates

The term “taxable supplies” refers to supplies of goods and services that are subject to VAT.

The following are the VAT rates in Estonia:

• Standard rate: 20%
• Reduced rate: 9%
• Zero rate (0%)

The standard rate of VAT applies to all supplies of goods or services, unless a specific measure allows the reduced rate, the zero rate or an exemption.

Estonian VAT for digital service providers

VAT obligation can arise in Estonia if electronically supplied services are provided to a person whose location/dwelling place is in Estonia and who is not registered for VAT purposes or liable to pay VAT on these services in any other EU Member States.

Mini One-Stop Shop

The optional simplification measure called the “Mini One-Stop Shop” (MOSS) with respect to digital services, telecommunication services and broadcasting services supplied in a B2C context. The supply of these services is generally considered as taking place in the Member State of the customer, not the Member State of the supplier.The MOSS scheme allows all taxable persons supplying digital services, telecommunication services or broadcasting services to nontaxable persons in EU Member States in which they do not have an establishment, to account for the VAT due on those supplies via a web portal in the Member State in which they are identified. The MOSS allows qualifying taxable persons to avoid registering in each Member State of consumption. The MOSS simplification is available both for taxable persons established in the EU and outside the EU. The MOSS generally mirrored the scheme that was in place for non-EU established suppliers of electronically supplied digital services, telecommunication services or broadcasting services supplied to final consumers. Persons already registered under the pre – existing scheme for electronically supplied digital services, telecommunication services or broadcasting services, should retain their existing individual VAT identification numbers for the purposes of the MOSS.

Late – registration penalties

Penalties and interest are assessed for late registration for VAT and delay in remitting the VAT payable to the tax authority.