From the date of registration as taxable person with limited liability, you are subject to the following obligations (Value Added Tax Act § 25 (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
- pay VAT pursuant to § 38 of Value Added Tax Act;
- Retain documents and maintain records pursuant to § 36 (3) of Value Added Tax Act;
- 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 > "Communication" > "Correspondence", in digitally signed format to email@example.com 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 on a user account and access permissions in the e-MTA »
- 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 the following channels:
- e-mail: firstname.lastname@example.org
- phone: (+372) 880 0812 (Mon–Thurs 8:30–16:30, Fri 8:30–15:30)