- Preparing a registration application
- Submitting it to the Estonian Tax and Customs Board
- Communicating with the tax inspector regarding VAT application
- A value added tax identification number or VAT identification number is an identifier used in many countries, including the countries of the European Union, for value added tax purposes.
- Your Estonian VAT number will be automatically available in VIES for your business partners to check if needed
- Do give us representation rights there is a need for with Estonian, Latvian, Lithuanian, and Belgium ID-Card/Estonian e-resident card/Estonian and Lithuanian Mobile-ID. If these options are not available, we can use Power of the Attorney.
VAT number (9)
The VAT registration obligation in Estonia arises from the moment when the company’s sales turnover exceeds 40 000 EUR per the calendar year.
At the same time, the company may apply for VAT status before it reaches this amount.
The VAT number registration can be initiated after you’ve registered your company.
The Import One-Stop Shop (IOSS) is the electronic portal businesses can use from 1 July 2021 to comply with their VAT e-commerce obligations on distance sales of imported goods.
What is the IOSS for?
The IOSS allows suppliers and electronic interfaces selling imported goods to buyers in the EU to collect, declare and pay the VAT to the tax authorities, instead of making the buyer pay the VAT at the moment the goods are imported into the EU as it was previously the case (for products over 22 EUR).
What are the advantages of the IOSS?
The IOSS facilitates the collection, declaration, and payment of VAT for sellers that are making distance sales of imported goods to buyers in the EU. The IOSS also makes the process easier for the buyer, who is only charged at the time of purchase, and therefore does not face any surprise fees when the goods are delivered. If the seller is not registered in the IOSS, the buyer has to pay the VAT and usually a customs clearance fee charged by the transporter.
Complete guideImport One Stop Shop IOSS
For this, you have to give us the right of representation in the Estonian Tax and Customs Board.
That is, either by authorizing us directly with the ID card through the Estonian Tax and Customs Board e-environment or giving us the Power of Attorney.
Take a look tutorial video:
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An authorization is a collection of rights within the limits of which a representative may act on behalf of the principal. It is essential for the Estonian Tax and Customs Board that the content of authorization would be understandable and the person granting the authorization and authorized person would be identifiable. An authorization may be granted orally or in written form (by a power of attorney).
The Estonian Tax and Customs Board shall accept:
- an oral authorization – is valid on procedural acts only together with a party to the proceedings;
- an unattested written authorization, unless the legislation states the different obligatory form of authorization;
- an authorization attested by a notary;
- an authorization signed digitally;
- an authorization granted by the legal representative of a legal person personally via the e-MTA (the menu item ‘Communication’ → ‘Correspondence’);
- an authorization confirmed by a sworn advocate.
The reverse charge is widely imposed on taxable transaction, which means that whenever the place of supply is Estonia and the receiver of the goods or services is a taxable person with an Estonian VAT number, no obligation for registration arises for the non-resident supplier. If the purchaser is not a VAT liable in Estonia, registration obligation arises for the provider of goods or services. The registration obligation shall arise for the foreign taxable person as of the date on which the taxable supply is created. However, if zero-rated supplies are made in a free zone, free warehouse or in a customs warehouse, the person making the supplies is exempted from registration.
If a taxable person of another Member State is engaged in distance selling to a person of Estonia (excluding distance selling of excise goods) and the taxable value of the supply of the distance selling exceeds 35 000 euros as calculated from the beginning of a calendar year, the registration obligation shall arise for the person as of the date on which the supply reaches the specified amount.
If a taxable person of another Member State is engaged in the distance selling of excise goods to a natural person of Estonia for personal use, the registration obligation shall arise for the taxable person as of the date on which the supply of the distance selling of excise goods is created.
In order to register as a VAT liable, an application for registration is submitted to the Estonian Tax and Customs Board.
Upon registration, it is required to attend the procedure in person, i.e. the person seeking for registration cannot e-mail or send the registration form by post or fax. However, it is possible to use either an authorised person or a tax representative for the procedure. The tax authority shall register a person as a taxable person by entering the data concerning the person in the register of taxable persons as on the date on which the registration obligation arose, within five working days as of the receipt of the application. Upon registration, we shall issue one VAT identification number for all purposes and for all taxable persons. The structure of the number is always EE and 9 digits (e.g. EE012345678).
In order to be registered as a VAT payer, the person must prove to the Tax and Customs Board that he or she is engaged in business in Estonia or is about to commence business in Estonia.
‘Engaged in business’ means actual economic activity commenced, but also a business plan worked out and making investments for the commencement of business.
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. The proof is any information confirming that the applicant has either commenced business at the place of business stated in the application or has planned to start a business. Such proof can be, for example, preliminary contracts, (commercial lease, procurement, delivery, employment, etc.) contracts, sites for work to be performed, etc.
In order to register for VAT, a foreign company must submit an application form R2 and an extract from the company register of the country where the company is located regarding the persons entitled to representation, address, etc. and an application for registration as a VAT payer.
Form R2 can be found on our website https://www.emta.ee/sites/default/files/ariklient/registreerimine-ettevotlus/mitteresident/vorm_r2_est-eng.pdf
Application for registration as a VAT payer https://www.emta.ee/sites/default/files/ariklient/registreerimine-ettevotlus/kaibaksuoikeustuslane/kmkr_avaldus_eng.pdf
Documents can be submitted either by a person authorized to represent or by an authorized person under a notarial power of attorney in our office on site.
We also accept documents sent by post if the specimen signature of the authorized person is notarized or sent digitally signed (digital signature of the authorized person) to our e-mail address email@example.com or submitted to our service office on site.