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)
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-Tax/e-Customs portal. Information for concluding the contract for use of the e-Tax/e-Customs and instructions for submission the tax returns are available at the webpage "Creation of e-services account for business client".
- 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 the following channels:
- e-mail: email@example.com
- VAT consultation phone: (+372) 880 0812 (Mon–Thurs 8.30–16.30, Fri 8.30–15.30)
- Forum on the website of the ETCB – the VAT officials of the ETCB are answering your questions (in Estonian)