The "My income" service in the e-services environment provides an overview of whether your income earned through a platform has been declared by the platform operator.
Service providers
Are you earning additional income as a content creator, delivery driver, ride sharer, cleaner, designer, language editor or painter on a platform?
When was the last time you checked that the platform operator has correctly declared all taxes for you?
Find out more about the taxation of income earned through platforms and, if necessary, declare your additional income yourself.
Real estate (immovable property)
Are you earning additional income on real estate?
When was the last time you checked that the income earned by renting out immovable property has been declared?
Income earned from immovable property is subject to income tax. Usually, platforms withhold income tax, if rental income is paid by platforms. It is the responsibility of the recipient of the income to check whether rental income has been declared.
If immovable property is rented from a private person to a private person through a platform and payment is made outside the platform, the recipient of the income must declare the rental income.
Find out more about the taxation of rental income and, if necessary, declare your additional income yourself.
Selling goods on internet platforms
Are you earning additional income with selling goods on the internet?
When was the last time you checked that the income earned by selling goods or handicrafts has been declared correctly?
If you have sold new or used goods for the purpose of resale, you must declare the income yourself. Selling belongings of personal consumption is exempt from tax.
Find out more about the taxation and declaration of additional income.
Ride sharing
Are you earning additional income with ride sharing?
Income received for services is subject to all labour taxes. When was the last time you checked that the platform operator has correctly declared all taxes for you?
Find out more about the taxation of income earned through platforms and, if necessary, declare your additional income yourself.
Rental income is taxable only with income tax, and if the payer is a platform, then the platform withholds income tax from the rental income. It is the responsibility of the recipient of the income to check whether rental income has been declared. If you received rental income from outside the platform, you must declare the rental income yourself.
Find out more about the taxation of rental income and, if necessary, declare your additional income yourself.
How are taxes paid
When a service is purchased
The service is received and paid for by a private person (customer). The service is provided by and the payment for providing the service is received by the owner of the entrepreneur account, sole proprietor or private limited company.
The entrepreneur account holder, sole proprietor or private limited company (the service provider) pays income tax, social tax, unemployment insurance premiums and contributions to mandatory funded pension according to its business form.
The service providers registered for value added tax (VAT) purposes (sole proprietors and private limited companies) pay VAT at the rate established by the Value-Added Tax Act to the service and submit proper invoices.
NB! If an entrepreneur account holder provides the service and the charge is taxed on the basis of the Simplified Business Income Taxation Act, the service provider cannot be registered as a taxable person liable to VAT and VAT is not charged. Entrepreneur account holders do not need to issue invoices.
The service is provided by and the payment for providing the service is received by the holder of the entrepreneur account, sole proprietor or private limited company through the app.
The owner of the app (company) provides the service of use of the application (digital service) and the intermediation service.
The entrepreneur account holder, sole proprietor or private limited company (the service provider) pays income tax, social tax, unemployment insurance premiums and contributions to mandatory funded pension.
The app owner has the right to organise business activities in such a way that services can be provided to customers through the app (mobile application, platform, etc.) only as an entrepreneur account holder, as a sole proprietor or through a private limited company.
NB! If the service is provided to a private person (customer) by the owner of an entrepreneur account, the owner of the app (service intermediary) does not incur income tax liability on expenses not related to business on the basis of subsection 1 and clause 1 of subsection 2 of § 51 of the Income Tax Act.
NB! Platform operators are obliged to collect and submit to the Tax and Customs Board once a year the data on the sellers and service providers operating on their platform and the income earned by them. More information about automatic exchange of platform-related information.
If the natural person (courier, driver etc., who is not an entrepreneur account holder, a sole proprietor or a person operating through a private limited company) provides the service and receives the payment for the provision of the service, then the owner of the app, i.e. the intermediary of the service, is obliged to declare and pay labour taxes.
The app owner (Estonian company), i.e. the service intermediary, who makes a payment to a natural person for the provision of the service, withholds income tax on the payment and pays social tax, unemployment insurance premiums and, in the case of an obligated person, the contributions to the mandatory funded pension. This is based on subsections 1 and 2 of § 40 and subsection 3 of § 41 of the Income tax Act; clause 6 of subsection 1 of § 2, clauses 1, 2 and 4 of subsection 1 of § 9 of the Social Tax Act; subsection 1 of § 40 of the Unemployment Insurance Act and subsection 1 of § 7 of the Funded Pensions Act.
NB! The app owner submits the monthly declaration form TSD and pays all the labour taxes on the payments made to the natural person on the basis of the form TSD, including on the amount the app owner transfers to the natural person as a brokered payment.
When renting out property
Any immovable or movable property (e.g. apartment, house, car, bus, etc.) can be the property rented out.
Renting out an apartment/house is a situation where the living space is given to use for temporary accommodation of people through an app.
The property is rented by a private person (customer), who pays for the rental of the property. The property is rented out by an entrepreneur account holder, sole proprietor or private limited company, which receives payment for renting out the property.
The entrepreneur account holder, sole proprietor or private limited company (property lessor) pays taxes according to its business form.
The lessors registered for value added tax (VAT) purposes (sole proprietors and private limited companies) pay VAT at the rate established by the Value-Added Tax Act and submit proper invoices.
NB! If an entrepreneur account holder is the lessor and the charge is taxed on the basis of the Simplified Business Income Taxation Act, the lessor cannot be registered as a taxable person liable to VAT and VAT is not charged. Entrepreneur account holders do not need to issue invoices.
The property is rented out by an entrepreneur account holder, sole proprietor or private limited company, which receives rental income through an app.
The app owner (company) provides the application service (digital service) and mediation service.
The entrepreneur account holder, sole proprietor or private limited company (lessor) pays taxes according to its business form.
NB! If the property is rented to a private person (customer) by a holder of an entrepreneur account, then the owner of the app (property intermediary) does not have an income tax liability on expenses not related to business based on subsection 1 and clause 1 of subsection 2 of § 51 of the Income Tax Act.
If the owner of the app rents the property from the holder of an entrepreneur account and uses the property in its business for the purpose of subletting, the owner of the app also does not incur additional income tax liability from the payment of rental income to the entrepreneur account.
NB! Platform operators are obliged to collect and submit to the Tax and Customs Board once a year data on the sellers and service providers operating on their platform and the income earned by them. More information about automatic exchange of platform-related information.
If the natural person (property owner, who is not an entrepreneur account holder, a sole proprietor or a person operating through a private limited company) rents out property and receives income for renting out the property, then the owner of the app, i.e. the intermediary of the service, is obliged to declare and pay income tax on rental income.
The owner of the app (Estonian company), i.e. the service intermediary, who makes a payment of property rental income to the natural person, withholds from the payment and pays income tax (basis: subsection 1 of § 16, subsections 1 and 2 of § 40 and subsection 7 of § 41 of the Income Tax Act).
NB! The app owner submits the monthly declaration form TSD and pays income tax on the rental income payments made to the natural person based on the form TSD, including on the amount the app owner transfers to the natural person as a brokered payment.
In summary
| Service is received by | Service is provided by | Taxes are paid by |
|---|---|---|
| Private person (customer) | Entrepreneur account holder | Entrepreneur account holder automatically via entrepreneur account in the LHV Pank |
| Private person (customer) | Sole proprietor | Sole proprietor according to submitted income tax return |
| Private person (customer) | Private limited company | Private limited company on the wages of its employees according to the tax declaration form TSD |
| Private person (customer) | Natural person who is not a registered entrepreneur | App owner according to the submitted tax declaration form TSD |
Last updated: 22.12.2023
