If you are running a business in Estonia, it is important to know the procedures for filing VAT returns. The Estonian Tax and Customs Board (EMTA) is responsible for collecting and managing taxes, including VAT.

Who needs to file a VAT return?

In Estonia, businesses that are registered for VAT must file a VAT return on a regular basis. This includes businesses that are not based in Estonia but are selling goods or services to Estonian customers and have exceeded the annual threshold for VAT registration.

When do you need to file a VAT return?

VAT returns must be filed on a monthly or quarterly basis, depending on the turnover of the business. If the business has an annual turnover of less than €40,000, they can file VAT returns on a quarterly basis. If the annual turnover exceeds €40,000, monthly VAT returns are required.

How to file a VAT return?

VAT returns can be filed electronically through the EMTA e-Tax/e-Customs system. The VAT return must be submitted by the 20th day of the month following the reporting period. If the business is using an accountant to file their VAT return, the deadline is extended until the end of the month.

What information do you need to provide in a VAT return?

The VAT return must include information about the VAT that has been charged on sales and paid on purchases during the reporting period. The report should also include the VAT registration number of the business, the period covered by the report, and the amount of VAT that needs to be paid or refunded.

Penalties for late or incorrect VAT returns

If a business fails to file their VAT return on time, or if the return contains errors or omissions, they may be subject to penalties and fines. The amount of the penalty depends on the severity of the violation and can range from €32 to €1,200.

In Estonia, both residents and non-residents are required to register for VAT if they conduct taxable activities. Taxable activities include the supply of goods and services within Estonia, imports, and the provision of services to other EU countries.

For residents, the registration threshold is €40,000 of taxable turnover in a calendar year. Once this threshold is exceeded, registration must be completed within three working days. If a business expects to exceed the threshold, it can also choose to register voluntarily.

Non-residents are required to register for VAT if they supply goods or services in Estonia and the annual value of these supplies exceeds €10,000. The registration must be completed before the first taxable supply takes place.

VAT registration can be completed online through the Estonian Tax and Customs Board (EMTA) portal or by visiting an EMTA office in person. The registration process involves providing company details, information about the types of goods or services provided, and the expected turnover.

Upon registration, a VAT number will be issued, which must be displayed on all invoices and other relevant documents. Businesses must also submit regular VAT returns, usually on a monthly basis.