Turnover tax is imposed on goods and services sold in the course of doing business, the import of goods from countries outside the European Union, and the purchase of goods in the countries of the European Union.
Turnover tax is a value added tax paid by the end consumer.

Obtaining a VAT number in Estonia:
• Possibly on a voluntary basis until a taxable turnover of EUR 40,000 occurs;
• mandatory if the turnover exceeds 40,000 euros from the beginning of the calendar year.

The general value added tax rate is 20% of the taxable value of a good or service.

For some goods and services, the tax rate is 9%, for example, on goods such as books and workbooks used for educational work, periodicals, accommodation services, as well as medicines marked by the Ministry of Social Affairs, Sanitary and Hygiene Products and Medical equipment intended for personal use by disabled people.
For some goods, a turnover tax rate of 0% applies, including for exported goods, consulting services provided to a taxable person from another EU member state, as well as for water and air transport used for international flights.

An application for a VAT number can be submitted by:

· A member of the board of the company in person at the Estonian Tax and Customs Board;
· A representative on the basis of a notarized power of attorney;
· Member of the board of the company online through the e-Residency card.

You can read more about this in our article "Obtaining VAT and EORI Online".
The taxation period is a calendar month.

Value added tax return (KMD return) must be sent by the 20th day of the month following the taxation period.

If you still have questions about obtaining a VAT number or if you need help filing declarations, please contact us.