Providing proof concerning the taxable person’s business before the registration

In order to be registered as a VAT payer, the person must prove to the 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 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.