VAT registration in Estonia

When registration is mandatory

You must register for VAT once your company's taxable supply with the place of supply in Estonia passes €40,000 since the start of the calendar year. You can also register voluntarily before you reach the threshold, for example when most of your customers are VAT-registered businesses and you want to reclaim input VAT on your purchases.

The standard VAT rate in Estonia is 24% (since 1 July 2025). All the rates are in our post Estonian tax rates 2026.

How registration works

The application goes to the Estonian Tax and Customs Board, usually through the e-MTA portal. The tax authority may ask for proof that the company is trading, or about to trade, in Estonia: contracts, invoices, a description of what you do. We prepare the application and supporting documents with you and, under a power of attorney, deal with the tax authority on your behalf.

What changes after registration

• you charge VAT on your invoices, and your invoices must meet the requirements of the VAT Act
• a VAT return (KMD) with its INF annexes is filed every month, plus the VD report for intra-Community supplies
• you can reclaim input VAT on business purchases; which expenses qualify is explained in business expenses and VAT
• digital services and distance sales to consumers in other EU countries may fall under the OSS scheme

All of this is part of our ongoing bookkeeping and accounting service: VAT accounting, the KMD, INF and VD returns and the OSS return.

Sources

• Estonian Tax and Customs Board – registration as a VAT payer