Registration as a VAT payer

The obligation to register for VAT purposes arises when economic operator's taxable supply exceeds 40,000 euros as calculated from the beginning of a year. An economic operator whose intra-Community acquisition of goods exceeds 10,000 euros as calculated from the beginning of a year is registered as liable to value added tax with limited liability. A parent undertaking and its subsidiaries are registered as a value added tax group. For both registration and deletion from the register, an application must be submitted to the Estonian Tax and Customs Board.

Registration as a person liable to value added tax

Registration as a VAT payer is either obligatory or voluntary.

An obligation to register as a VAT person shall arise for the person as of the date on which the taxable supply of his or her transactions exceeds 40,000 euros as calculated from the beginning of a calendar year.

A person is required to submit an application for registration as a VAT payer to the Estonian Tax and Customs Board within three working days as of the date on which the registration arises.

If a person has no taxable supply yet or the person’s taxable supply does not exceed 40,000 euros, the registration as a VAT payer shall be voluntary.

The prerequisite for the registration as a VAT payer is the fact that the person is engaged in business or is about to commence business in Estonia.

If the proof provided concerning the person’s business or commencement of business is insufficient, the Estonian Tax and Customs Board shall have the right to request that the person submit additional proof or collect such proof on its own initiative.

A person is subject to registration as a person liable to value added tax with limited liability (hereinafter a VAT payer with limited liability), if a person is not registered as a VAT payer but purchases goods (except new means of transport and excise goods) from another VAT payer of the other MS the taxable value of which exceeds 10,000 euros as calculated from the beginning of a calendar year or receives certain services from a foreign person engaged in business who is not registered as a VAT payer in Estonia.

The difference between a VAT payer and a VAT payer with limited liability lies in the fact that a VAT payer with limited liability pays value added tax only on the intra-Community acquisition of goods and on receiving the services from a foreign person engaged in business.

A VAT payer with limited liability does not add value added tax to the prices of the goods transferred or services provided  by himself or herself and he or she does not have the right to deduct input value added tax either.

The obligation to register as a VAT payer with limited liability shall be created as of the date of receiving the services listed in subsection 10 (5) of the Value Added Tax Act:

  1. grant of the use of intellectual property or transfer of the right to use intellectual property;

  2. advertising services;

  3. services of consultants, accountants, lawyers, auditors and engineers, translation services, as well as data processing or the supplying of information;

  4. financial services, except for leasing safes, or insurance services, including reinsurance and insurance intermediation services;

  5. allowing use of manpower;

  6. the hiring or leasing of or establishment of a usufruct on movables, except means of transport;

  7. electronic communications services, including assignment of rights to use transmission lines;

  8. electronically supplied services;

  9. allowing access to natural gas or electricity, heating and cooling energy network connections, and transmission of natural gas or electricity, heating or cooling energy through networks and services directly related thereto;

  10. transfer of permitted limit values of emissions of greenhouse gases regulated by the Ambient Air Protection Act;

  11. refraining from the services mentioned above, waiving the exercise of a right or tolerating a situation for a charge.

A person is required to submit an application for registration oneself as a VAT payer with limited liability to the Estonian Tax and Customs Board within three working days as of the date on which the obligation arises.

As of the date of registration as a VAT payer, a person shall perform the obligations of a VAT payer, including:

  • adding the amount of value added tax to the taxable value of the goods transferred or services provided;
  • calculating the amount of value added tax due which shall be paid into the state budget by the twentieth day of the month (generally a calendar month) following the taxable period;

NB! the value added tax (input VAT) paid on goods purchased or services received can be deducted only if the goods purchased or the services received have been acquired for the purposes of taxable supply. If the person is not engaged in business or if the goods or services have been acquired for the purposes of supply exempt from tax, the input value added tax shall not be deducted.

In order to be registered as a VAT payer, the person must prove to the Estonian Tax and Customs Board that he or she is engaged in business in Estonia or is about to commence business in Estonia.

‘Engaged in business’ means actual economic activity commenced, but also a business plan worked out and making investments for commencement of business.

The Estonian Tax and Customs Board shall have the right to request that the person submit additional proof or collect such proof on its own initiative. Proof is any information confirming that the applicant has either commenced business at the place of business stated in the application or has planned to start business. Such proof can be, for example, preliminary contracts, (commercial lease, procurement, delivery, employment, etc.) contracts, sites for work to be performed, etc.

If the person could not provide convincing proof concerning the person’s business or commencement of business in Estonia, the Tax and Customs Board shall have the right to refuse to register the person as a VAT payer.

The Estonian Tax and Customs Board has the right to check the performance of the tax liabilities of the person registered as a VAT payer.

The Value Added Tax Act grants the Estonian Tax and Customs Board the right to delete on its own initiative persons from the national VAT register if the persons are not engaged in business in Estonia.

The Estonian Tax and Customs Board has the right to request that the taxable person submit additional proof concerning his or her business, setting a term for providing the proof. If the person fails to provide proof of business or the tax authority has sufficient proof of the fact that the person has no actual economic activity in Estonia, the Estonian Tax and Customs Board shall delete the person from the VAT register.

The Estonian Tax and Customs Board has the right to delete on its own initiative also persons from the national VAT register if the persons have failed to submit value added tax returns for the last six consecutive taxable periods. Before deletion from the register, the tax authority contacts the taxable person and gives the opportunity to perform the obligations retroactively and thereby avoid deletion from the register.

The following persons have the right to submit an application

  • a legal person authorised to sign;
  • a legal representative of state, rural municipality or city authorities;
  • a sole proprietor;
  • an authorised representative.

Submitting an application

  • in the e-MTA

In order to submit the application for registration as a person liable to VAT in the e-MTA, the user has to have the access permission "Submitting applications for registration as a person liable to value added tax (KMKR)" given by a legal representative of a company.

For the administration of access permissions, a legal representative of a company enters in the e-MTA in the role of a representative and chooses Settings – Access permissionsAccess permissions of representatives. To give the access permission, the personal identification code of the user is to be entered and the access permission "Submitting applications for registration as a person liable to value added tax (KMKR)" is to be chosen.

In section "My access permissions" you can view your access permissions (rights for using the e-MTA services), discard and delegate your permissions (provided that the access permission is delegable). Delegation means that you give your access permission to another person so that this person can represent you in the e-MTA.

For the submitting of the application as an authorized person, choose in the e-MTA: Registers and inquiries – RegistrationRegistration of the VAT liable personNew applicationApplication for registration as a person liable to VAT or Application for registration as a person liable to VAT with limited liability.

Video instruction on how to submit the application in the e-MTA

  • At a service bureau

1. The forms of applications to be completed on the computer:


2. Please submit the following documents to a service official:

  • an application,
  • an identity document,
  • a document certifying your authority.
  • In the company registration portal of the commercial register

A company can submit an application for registration as a person liable to value added tax through the Company registration portal of the Commercial register as a part of the first entry petition of a private limited company.

The application for registration as a person liable to value added tax shall be sent to the Estonian Tax and Customs Board via X-tee services after the company has been entered in the Commercial register.

The companies entered in the register earlier can be registered as persons liable to value added tax in the e-MTA or in a service bureau of the Estonian Tax and Customs Board.

Making a decision

Decision on registration

The Estonian Tax and Customs Board shall decide on registration within five working days after the receipt of the application.

If we need additional documents for registration concerning the proof of your commencement of business or engagement in business, we will contact you either by telephone or by post within five working days. In this case we will decide on registration within five working days after the receipt of the documents.

We will inform you about the registration by e-mail or sending an SMS message, and the decision on registration will be uploaded in the e-MTA.

Decision can be found in the e-MTA both in section CommunicationDocuments as well Registers and inquiries Registration Registration of the VAT liable person.

Decision on leaving unregistered

If a person is not engaged in business or does not commence business, the Estonian Tax and Customs Board shall not register the person as a VAT payer.

The Estonian Tax and Customs Board shall not register a person either, if he or she has not submitted the additional documents required within the prescribed term.

The Estonian Tax and Customs Board shall make the decision on leaving unregistered within five working days after the receipt of the documents or after expiry of the term of the submission of the documents.

The decision will be uploaded in the e-MTA. We will inform you about making the document available in the e-MTA by email or sending an SMS message.

Decision can be found in the e-MTA both in section Communication Documents as well Registers and inquiries Registration Registration of the VAT liable person.

The reverse charge is widely imposed on taxable transaction, which means that whenever the place of supply is Estonia and the receiver of the goods or services is a taxable person with an Estonian VAT number, no obligation for registration arises for the non-resident supplier. If the purchaser is not a VAT liable in Estonia, registration obligation arises for the provider of goods or services. The registration obligation shall arise for the foreign taxable person as of the date on which the taxable supply is created. However, if zero-rated supplies are made in a free zone, free warehouse or in a customs warehouse, the person making the supplies is exempted from registration.

In order to register as a VAT liable, an application for registration is submitted to the Estonian Tax and Customs Board: 


Upon registration, it is required to attend the procedure in person, i.e. the person seeking for registration cannot e-mail or send the registration form by post or fax. However, it is possible to use either an authorised person or a tax representative for the procedure. The tax authority shall register a person as a taxable person by entering the data concerning the person in the register of taxable persons as on the date on which the registration obligation arose, within five working days as of the receipt of the application.

Upon registration, we shall issue one VAT identification number for all purposes and for all taxable persons. The structure of the number is always EE and 9 digits (e.g. EE012345678).

This guide provides the new Value Added Tax (VAT) liable persons with the important information on due dates, tips for submitting the tax returns, as well as the contacts for VAT advice.

Persons liable to value added tax have the right to deduct from their value added tax liability the value added tax to be paid on goods or services purchased for the purposes of their taxable supply during the same taxable period (input value added tax).

Deduction of the input value added tax is not allowed if the taxable persons are not engaged in business, or if the goods or services have been acquired for the purposes of the tax-exempt supply.

Obligations of persons liable to value added tax (VAT)

Since the day of registration as a person liable to value added tax you are required to:

  • add VAT to the taxable value of any goods transferred or any service provided;
  • submit the invoices in conformity with the requirements of Article 37 of Value Added Tax Act;
  • preserve the documents concerned and keep accounts thereof;
  • calculate the amount of VAT due and pay the VAT amount.

Tax calendar of a person liable to VAT

Term Obligation Who has to submit
Monthly, by the 20th of each month Submission of the VAT return (Form KMD) and appendix to the value added tax return (Form KMD INF) All persons liable to VAT
Payment of VAT
Monthly, by the 20th of each month Submission of the recapitulative statement (Form VD) Persons liable to VAT who are selling goods or providing services to the VAT liable persons of other EU Member States
Monthly, by the 10th of each month Submission of income and social tax return, where the contributions to mandatory funded pension and unemployment insurance premiums are also expressed (Form TSD)
NB! As of 1 June 2019, a person liable to value added tax is not obliged to submit tax forms TSD (TSD with zeros) if the taxable person had no tax liability or circumstances affecting the tax liability.
Persons liable to VAT who were obliged to submit Form TSD
Payment of taxes and contributions based on the TSD form submitted


If the term prescribed for performing the obligation falls on a public holiday or a day off, the first working day following the day off is deemed to be the term for performing the obligation.

The Estonian Tax and Customs Board is on monthly basis notifying all new VAT liable persons by e-mail about the dates for submission of KMD and TSD tax returns during the six months period since their registration.

Submission of tax returns

  • Period of taxation for assessment of VAT is the calendar month.
  • If the number of calendar days remaining within the first period of taxation is less than 15 (e.g. you have been registered as a taxable person since 18th day of a month), you may declare the supply of the first taxable period together with the supply of the following period submitting one VAT return for both taxable periods.
  • All tax returns should be submitted electronically through the e-MTA portal. Additional information: "Granting of access permissions". 
  • Only the persons who have been liable to VAT for a period remaining under 12 months and who do not declare more than 5 invoices on the appendix to the VAT return, are allowed to submit the VAT return (Form KMD) on paper. Persons who have been liable to VAT for more than 12 months and /or declare more than 5 invoices on the appendix of the VAT return, may submit their VAT return and its appendix on paper only if they have submitted the respective reasoned application to Estonian Tax and Customs Board (ETCB) and after the Board has satisfied their application.
  • Submission of TSD return on paper is allowed if only up to 5 rows of Annex 1 to TSD have been filled in, i.e. only 5 payment recipients have been declared.

Validation of the business partners’ VAT numbers

If you need any assistance

More information on VAT matters is provided by the ETCB via:

  • e-mail: ariklient@emta.ee
  • VAT consultation phone: (+372) 880 0812 (Mon–Thurs 8:30–16:30, Fri 8:30–15:30)
     

From the date of registration as taxable person with limited liability, you are subject to the following obligations (Value Added Tax Act § 25 (1)):

  1. calculate payable VAT pursuant to Value Added Tax Act § 29 (12).
    Taxable persons with limited liability must pay VAT on:
    - Intra-Community acquisition of goods (except intra-Community acquisitions of goods which are exempt from tax)
    - on acquisition of goods as an acquirer in the triangular transaction
    - on acquisition of goods assembled or installed in Estonia from another Member State business entity unregistered for tax in Estonia
    - on services received from foreign business entities unregistered for tax in Estonia
    - on acquisition of goods unspecified above from foreign business entities unregistered for tax in Estonia

  2. pay VAT pursuant to § 38 of Value Added Tax Act;
     
  3. Retain documents and maintain records pursuant to § 36 (3) of Value Added Tax Act;
     
  4. Submit value added tax returns (without annexes) only if you have entered into transactions specified in Value Added Tax Act § 3 (5) during the taxable period (Value Added Tax Act § 27 (2) 2)).

As a taxable person with limited liability you will incur actual VAT liability from declared acquisition of goods and receipt of services because you are not entitled to deduct input VAT (Value Added Tax Act § 25 (1)).

If you are registered as taxable person with limited liability due to receipt of services, you will not be immediately liable to pay VAT on intra-Community acquisition of goods. You must pay VAT on acquired goods only when you purchase excise goods or a new vehicle and if the threshold for acquiring other goods of 10,000 euros since the beginning of the calendar year has been exceeded. However, you may do so earlier if you notify the Estonian Tax and Customs Board in writing (via the e-MTA, selecting Communication - Correspondence, in digitally signed format to emta@emta.ee or at offices of Estonian Tax and Customs Board).

You must give written notice to the Estonian Tax and Customs Board within three business days of exceeding the acquisition of goods threshold (Value Added Tax Act § 25 (2)).

If you are registered as taxable person with limited liability due to exceeding the threshold for intra-Community acquisition of goods and thereafter also receive taxable services, you must also pay VAT on services received because receipt of services is not subject to any tax-exempt threshold.

If you are registered as taxable person with limited liability only for receipt of services, you will not be able to use your taxable person with limited liability registration number for the acquisition of goods where the vendor applies the zero rate. If you nevertheless use such registration number, this is deemed as an application to initiate payment of VAT on acquisition of goods in Estonia and you must report intra-Community acquisition of goods on your VAT return and pay VAT thereon. In such case you will not only be subject to declare and pay VAT on this transaction for which you used the registration number but from that transaction you must also pay VAT on all intra-Community acquisitions because from that transaction you will be deemed registered also for intra-Community acquisition of goods (Value Added Tax Act § 25 (3)).
 

Submission of VAT returns

  • The taxable period for VAT is one calendar month.
  • If the number of calendar days of the first taxable period is lower than 15 (for example if you are registered for VAT since the 18th day of the month), you may file your first period return together with the one for the next taxable period, submitting one VAT return for the two taxable periods.
  • All tax returns can be submitted electronically through the e-MTA. Additional information: "Granting of access permissions".
  • Submitting VAT returns on paper is permitted only for entities that have been registered for VAT for less than 12 months. Entities registered for VAT for more than 12 months may only submit VAT returns on paper on the basis of a reasoned request to the Estonian Tax and Customs Board.
     

If you need any assistance


More information on VAT matters is provided by the ETCB via:

  • e-mail: ariklient@emta.ee
  • phone: (+372) 880 0812 (Mon–Thurs 8:30–16:30, Fri 8:30–15:30)

  • Value added tax (VAT) identification number search 

    By using this search tool you can check if a person, for example your business partner, is registered as a VAT payer in Estonia. You must enter the personal ID number, commercial register number or non-resident number of this person to submit your search inquiry. If a registration is found, the result will contain the following data: name and commercial register number of the VAT payer, value-added tax identification number (VAT ID), the date of inclusion and exclusion from the register.
  • European Union value-added tax identification number (VIES VAT number) verification 

    By using this search tool you can check if a person such as your business partner is registered as a VAT payer in any European Union Member State and if the VAT identification number is valid. You must enter the person's value-added tax identification number to submit your search inquiry.
  • Structures and formats of numbers  

Registration as a value added tax group

Estonian VAT payers engaged in business in Estonia are registered as a value added tax group:

  • a parent company and its subsidiaries within the meaning of Commercial Code;
  • economically and organisationally related VAT payers if more than 50 percent of the shares, holding or votes of each company to be registered within the composition of a value added tax group are owned by one and the same person or if the persons are related on the basis of a franchise contract.

Therefore the registration as a value added group is an option for Estonian VAT payers engaged in business in Estonia being closely bound by financial, economical and organisational links. All three conditions must be met.

Registration as a value added tax group is voluntary.

Persons registered as a value added tax group have a joint VAT registration number, they keep joint accounting of VAT and submit joint VAT returns (form KMD), reports on intra-Community supply (form VD) and reports on the amendment of intra-Community supply (form VDP).

Transactions between persons registered as a value added tax group are not subject to VAT, it means that in the case of transactions between persons registered as a value added tax group VAT is neither included in invoices nor declared in VAT returns. Transactions between a taxable person belonging to a value added tax group and a person outside the value added tax group are deemed to be transactions of the value added tax group with that person, so VAT is chargeable according to the general rules.

All persons belonging to a value added tax group are solidarily liable for payment of value added tax by the due date. Likewise, upon deletion of a value added tax group from the register the taxable persons shall be solidarily liable for the value added tax arrears which arose during the period when they were registered as a value added tax group.

Persons entitled to lodge an application:

  • a signatory of the representative of the value added tax group
  • an authorised representative

Lodging the application

  • in the e-MTA

In order to submit the application for registration as a value added tax group in the e-MTA, the user has to have the access permission "Submitting applications for registration as a person liable to value added tax (KMKR)" given by a legal representative of a company.

For the administration of access permissions, a legal representative of a company enters in the e-MTA in the role of a representative and chooses Settings – Access permissions. To give the access permission, the personal identification code of the user is to be entered and the access permission "Submitting applications for registration as a person liable to value added tax (KMKR)" is to be chosen.

For the submitting of the application as an authorized person, choose Registers – VAT register – New application – Application for registration as a value added tax group.
 

  • by email

1. Upon registration as a value added tax group a written application has to be submitted on the form KRÜ.


2. Complete the application in the Estonian language.

3. Sign the application digitally.

4. Send the application to emta@emta.ee

5. If the application is signed by an authorised representative, a copy of the document certifying the authorisation has to be added to the application.
 

  • in a service bureau

1. Upon registration as a value added tax group a written application has to be submitted on the form KRÜ.

2. Complete the application in the Estonian language.

3. To be submitted to a service official:

  • application;
  • identity document;
  • if you are an authorised person, a document certifying the authorisation.
     
  • By post

1. Upon registration as a value added tax group a written application has to be submitted on the form KRÜ.

2. Complete the application in the Estonian language.

3. Send the application to the Estonian Tax and Customs Board at the address Lõõtsa 8a, 15176 Tallinn.

4. If the application is signed by an authorised representative, a copy of the document certifying the authorisation has to be added to the application.


Making a decision

The Estonian Tax and Customs Board makes a decision on the registration as a value added tax group within 30 days as of the receipt of the application. We will inform you about the decision by e-mail or sending an SMS message.
The decision on registration will be uploaded in the e-MTA where it can be found in section RegistersVAT Register.

Notification of the implementation of the special arrangements in cash accounting for value added tax

All VAT payers whose taxable supply did not exceed 200,000 euros in the previous calendar year or as of the beginning of the current calendar year may implement the special arrangement in cash accounting for value added tax.

A person has to notify the Estonian Tax and Customs Board of the intention to use the special arrangement either upon submission of the application for registration as a person liable to value added tax or at the latest during the taxation period prior to implementation of the special arrangement.

Notification of the Estonian Tax and Customs Board

Only a signatory or authorised person of the VAT payer has the right to submit a notification.
If notification is submitted by an authorised person, a document certifying the authorisation has to be included in the attachment of the email or presented at the service bureau.

Notification of the implementation of the special arrangements in cash accounting for value added tax can be submitted

  • in the e-MTA

In order to submit the notice in the e-MTA, the user has to have the power (authorization) "KMKR avalduste esitamine" ("Submission of VAT applications") given by a legal representative of a company.

For the administration of powers, a legal representative of a company enters in the e-MTA in the role of a representative and chooses Contract and settings Administration of powers. To give the authorization, the personal identification code of the user is to be entered and the power "KMKR avalduse esitamine" ("Submission of VAT applications") is to be chosen.

For the submitting of the notice as an authorized person, choose Registers VAT register New applicationNotice of the implementation of special arrangements in cash accounting for value added tax.

  • by email

Email address emta@emta.ee. The notice must be digitally signed.

  • in a service bureau


Granting permission to implement the special arrangements

We will notify you of granting the permission to implement the special arrangements for value added tax or the refusal thereof at the latest within five working days following the receipt of the notification.

We will send you the notice by email, in the absence of email address it is sent by post.

To discontinue the special arrangements for cash accounting for VAT, a taxable person shall notify the Estonian Tax and Customs Board in writing.

If the special arrangements for cash accounting for VAT are discontinued voluntarily (taxable supply from the beginning of the year has not exceeded 200,000 euros), the notice ist o be submitted at the latest during the taxation periood prior to the discontinuation.

If the special arrangements are discontinued mandatorily (taxable supply from the beginning of the year has exceeded 200,000 euros), the notice is to be submitted at the latest in the first taxation period from which the the implementation of special arrangement was discontinued.

The taxpayer who wishes to delete itself from the VAT register does not have to submit the notice. Upon deletion from VAT register the taxpayer discontinues also the special arrangements for cash accounting for VAT.
 

Notification of the Estonian Tax and Customs Board

Only a signatory or authorised person of the VAT payer has the right to submit a notification. If notification is submitted by an authorised person, a document certifying the authorisation has to be included in the attachment of the email or presented at the service bureau.

Notice of the waiver of the implementation of the special arrangements in cash accountings for VAT can be submitted:

  • in the e-MTA

In order to submit the notice in the e-MTA, the user has to have the power (authorization) "KMKR avalduste esitamine" ("Submission of VAT applications") given by a legal representative of a company.

For the administration of powers a legal representative of a company enters in the e-MTA in the role of a representative and chooses Contract and settingsAdministration of powers. To give the authorization, the personal identification code of the user is to be entered and the power "KMKR avalduse esitamine" ("Submission of VAT applications") is to be chosen.

For the submittion of the notice as an authorized person, choose RegistersVAT registerNew applicationNotice of the waiver of the implementation of the special arrangements in cash accountings for VAT.

  • by email

Email address emta@emta.ee. The notice must be digitally signed.

  • in a service bureau


We will respond you at least within working days after receiving the notification, in general by email or SMS (if email address is missing).

This guide provides the new Value Added Tax (VAT) liable persons with the important information on due dates, tips for submitting the tax returns, as well as the contacts for VAT advice.

Persons liable to value added tax have the right to deduct from the calculated value added tax the value added tax to be paid on goods or services purchased for the purposes of their taxable supply (input value added tax).

Deduction of the input value added tax is not allowed if the taxable persons are not engaged in business, or if the goods or services have been acquired for the purposes of the tax-exempt supply.

Obligations of persons liable to value added tax (VAT)

Since the day of registration as a person liable to value added tax you are required to:

  • add VAT to the taxable value of any goods transferred or any service provided;
  • submit the invoices in conformity with the requirements of Article 37 of Value Added Tax Act;
  • preserve the documents concerned and keep accounts thereof;
  • calculate the amount of VAT due and pay the VAT amount.

Tax calendar of a person liable to VAT

Term Obligation Who has to submit
Monthly, by the 20th of each month Submission of the VAT return (Form KMD) and appendix to the value added tax return (Form KMD INF)

Payment of VAT
All persons liable to VAT
Monthly, by the 20th of each month Submission of the recapitulative statement (Form VD) Persons liable to VAT who are selling goods or providing services to the VAT liable persons of other EU Member States
Monthly, by the 10th of each month Submission of income and social tax return, where the contributions to mandatory funded pension and unemployment insurance premiums are also expressed (Form TSD)

Payment of taxes and contributions based on the TSD form submitted
All persons liable to VAT


If the term prescribed for performing the obligation falls on a public holiday or a day off, the first working day following the day off is deemed to be the term for performing the obligation.

The Estonian Tax and Customs Board is on monthly basis notifying all new VAT liable persons by e-mail about the dates for submission of KMD and TSD tax returns during the six months period since their registration.

Submission of tax returns

  • Period of taxation for assessment of VAT is the calendar month.
  • If the number of calendar days remaining within the first period of taxation is less than 15 (e.g. you have been registered as a taxable person since 18th day of a month), you may declare the supply of the first taxable period together with the supply of the following period submitting one VAT return for both taxable periods.
  • All tax returns should be submitted electronically through the e-MTA portal. Additional information on a user account and access permissions in the e-MTA »
  • Only the persons who have been liable to VAT for a period remaining under 12 months and who do not declare more than 5 invoices on the appendix to the VAT return, are allowed to submit the VAT return (Form KMD) on paper. Persons who have been liable to VAT for more than 12 months and /or declare more than 5 invoices on the appendix of the VAT return, may submit their VAT return and its appendix on paper only if they have submitted the respective reasoned application to Estonian Tax and Customs Board (ETCB) and after the Board has satisfied their application.
  • Submission of TSD return on paper is allowed if only up to 5 rows of Annex 1 to TSD have been filled in, i.e. only 5 payment recipients have been declared.
     

Validation of the business partners’ VAT numbers


If you need any assistance

More information on VAT matters is provided by the ETCB via:

  • e-mail: ariklient@emta.ee
  • VAT consultation phone: (+372) 880 0812 (Mon–Thurs 8:30–16:30, Fri 8:30–15:30)
     

Deletion of a person liable to value added tax from the register

A person registered as a VAT payer may lodge an application to the Estonian Tax and Customs Board for deletion of the person from the VAT register if according to the calculations of the taxable person his/her taxable supply will not exceed 40,000 euros within the next 12 months.

A person registered as a VAT payer with limited liability may lodge the application to the Estonian Tax and Customs Board for its deletion from VAT register if it has been registered as a VAT payer with limited liability for at least two years and the value of the goods acquired from another Member State did not exceed last year and has not exceeded this year 10,000 euros.

For deletion of a person liable to value added tax from the register, please submit a written application to the Estonian Tax and Customs Board. The application can be submitted in the e-MTA or at a service bureau.

The following persons have the right to submit an application:

  • a legal person authorised to sign;
  • a legal representative of state, rural municipality or city authorities;
  • a sole proprietor;
  • an authorised representative.

Submitting an application

  • in the e-MTA

In order to submit the application for registration as a person liable to VAT in the e-MTA, the user has to have the access permission "Submitting applications for registration as a person liable to value added tax (KMKR)" given by a legal representative of a company.

For the administration of access permissions, a legal representative of a company enters in the e-MTA in the role of a representative and chooses SettingsAccess permissionsAccess permissions of representatives. To give the access permission, the personal identification code of the user is to be entered and the access permission "Submitting applications for registration as a person liable to value added tax (KMKR)" is to be chosen.

For the submitting of the application as an authorized person, choose in the e-MTA: Registers and inquiriesRegistrationRegistration of the VAT liable personNew applicationDeletion from VAT register or Deletion of a person liable to VAT with limited liability from VAT register.

Video instruction on how to submit the application in the e-MTA

  • in a service bureau

1. Fill out the application

    For filling out forms on a Mac OS X computer, please use the latest free version of Adobe Acrobat Reader (it is recommended to select the Reader DC version). Otherwise, the content of the form is not visible to the recipient


    2. To be submitted to the service official:

    • an application,
    • an identity document,
    • a document certifying your authority.

    Making a decision

    A person liable to value added tax is deleted from the register on the basis of the decision of the Estonian Tax and Customs Board as of the date specified in the decision.
    Before deciding on the deletion of a taxable person from the register the tax authority shall, if necessary, audit the economic activities of the person. Therefore the date of deletion may be later than the date marked by you in your application.

    The decision will be uploaded in the e-MTA. We will inform you about making the document available in the e-MTA by e-mail or sending an SMS message. Decision can be found in the e-MTA both in section CommunicationDocuments as well Registers and inquiriesRegistrationRegistration of the VAT liable person.

    Deletions from the VAT register can be monitored via the Estonian Tax and Customs Board’s enquiry: value added tax (VAT) identification number search.

    Please note that if you are deleted from the register, you have to pay VAT on the acquisition cost of the goods not yet transferred or, in the absence of it, on the cost price of the goods if you have deducted the input VAT on such goods upon acquisition (to be declared in form KMD box 1 and/or 2). The input value added tax deducted upon acquisition of fixed assets not yet transferred shall be adjusted pursuant to provisions of subsection 32 (4) of the Value Added Tax Act (to be declared in form KMD box 10). Please submit the latest VAT return in accordance with the above described provisions (Value Added Tax Act, subsection 29 (10)).

    Moreover, please be informed that after deletion from the VAT register you have to submit the income, social security, contribution of mandatory funded pension and unemployment insurance premium return (TSD) pursuant to the Income Tax Act if tax liability arises.
     

    If you need any assistance

    More information on VAT matters is provided by the ETCB via:

    • e-mail: ariklient@emta.ee
    • phone: (+372) 880 0812 (Mon–Thurs 8:30–16:30, Fri 8:30–15:30)

    Last updated: 02.11.2021

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