When shall you register yourself as a VAT payer

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 Tax and Customs Board shall have the right to request that the person submit additional proof or collect such proof on its own initiative.