📊 VAT Registration in Estonia 🇪🇪
So, you’ve set up your consulting company in Estonia, and it’s thriving. But as your business grows, there’s an important consideration: Value Added Tax (VAT). Here’s a friendly guide to understanding VAT registration with emojis to make it simple! 🤗
1. VAT Basics 🧾
When you establish a company in Estonia, you aren’t automatically liable for VAT or entitled to deduct input VAT. VAT registration becomes mandatory when your total taxable sales exceed €40,000 from the beginning of the calendar year.
2. Optional Registration 📈
Before reaching the threshold, you have the option to register for VAT. It depends on the VAT amount on goods and services you buy and the VAT status of your clients.
3. Plan Ahead 🗓️
Once you foresee reaching the threshold, initiate the registration process. You must register within three business days of crossing the threshold.
4. Voluntary Registration 📝
You can register voluntarily before reaching the threshold by providing evidence of your business intentions.
5. Estonian VAT Number 🆔
The Estonian VAT number starts with a prefix EE, followed by nine digits (e.g., EE123456789).
6. VAT Rates 💼
Services to Estonian companies and individuals typically have a standard 20% VAT rate. A reduced 9% VAT rate applies to certain services. If you serve customers in other EU Member States or third countries, a 0% VAT rate often applies.
7. B2B Transactions 🤝
For B2B transactions in other EU Member States or third countries, include the customer’s VAT registration number and “reverse charge mechanism” on invoices.
8. B2C Transactions 🧑🤝🧑
B2C transactions outside Estonia may be subject to Estonian VAT, or you may need to register in the customer’s country and follow local VAT rules.
9. Verify VAT EE Number ✅
For comprehensive VAT registration services in Estonia, visit this link. Make informed choices to ensure your consulting business thrives in Estonia! 🌱💼