For self-employed persons

If the taxable supply of a self-employed person has exceeded 40,000 euros as of the beginning of a calendar year, they are obliged to register themselves as a person liable to value added tax. Self-employed persons can register as a person liable to value added tax also before their supply reaches 40,000 euros.

If self-employed persons fail to register for VAT purposes on time, they will be registered retroactively. In such a case, self-employed persons will have to issue new invoices that include VAT to clients to whom they issued invoices after their supply had exceeded 40,000 euros.

Self-employed persons who are liable to VAT are obliged to:

• submit to the Estonian Tax and Customs Board a value added tax return (form KMD) by the 20th day of the month following a period of taxation (calendar month);
• transfer the value added tax into the bank account of the Estonian Tax and Customs Board by the same date;
• submit to the Estonian Tax and Customs Board also a report on intra-Community supply (form VD) by the 20th day of the month following a period of taxation (calendar month), if the person liable to value added tax, i.e. the self-employed person, sells goods to the other persons liable to value added tax of the Member States of the European Union.

For more information, please see “Self-employed person and value added tax”.