Obtaining VAT and EORI numbers in Estonia

VAT Estonia

Estonia implements the European Union (EU) VAT Directive through the Value Added Tax (VAT) Act. Here are a few things you need to know;

Who pays VAT in Estonia?

  • Domestic persons

 Any domestic business person is obligated to register as a taxable person as soon as his or her supplies exceed EUR 16,000 as calculated from the beginning of a calendar year. However, you may also register as a taxable person even if the registration obligation threshold has not been met. A VAT number will be provided within three days of the application.

  • Foreign taxable persons

There is no registration threshold for foreign persons. What happens is that for a foreign business that makes taxable supply in Estonia, if such supply is not taxed in Estonia upon receipt of the goods or services by a VAT registered customer, then the foreign person is obligated to register as a taxable person for VAT. The obligation usually arises on the date on which the taxable supply was made and an application has to be filed within three working days of this date.

  • VAT groupings

VAT groupings are essentially entities that do business in Estonia. They include; taxable persons, parent companies and their subsidiaries, and economically or organizationally related taxable companies. In Estonia, there are circumstances where VAT groupings may choose not to register as VAT entities. Impex Consult can help you determine the best course of action for your VAT grouping.

  • Financial representatives

The Estonian VAT Act allows a taxable person in another European country to appoint a fiscal representative. However, this isn’t mandatory. Taxable persons from non-EU countries, on the other hand, MUST appoint a fiscal representative when registering for VAT. The representative needs to be licensed by the tax authorities and can be a legal person established in Estonia or a branch of a legal person entered in the Estonian Commercial Register.

What you need

To get the VAT number, you must provide;

  • A business plan for the next years or a longer period
  • Articles of association
  • An identity card or passport of controlling management
  • Evidence that the company will carry out taxable income in Estonia
  • Contracts with your buyers and suppliers
  • The company’s website and list of goods and services

Remember that the standard VAT rate in Estonia is 20% though these is a special reduced rate of 9% on selected items such as learning materials, medical products, certain publications, and accommodation services.

When you work with Impex Consult, our knowledgeable professionals will work hard to ensure that you obtain a VAT number within the shortest time possible.

Getting the EORI number

The Economic Operator Registration and Identification (EORI) number was started in July 2009. The number is stored both nationally and on a central EU EORI database. Entrepreneurs must indicate such numbers in EORI applications for transit transportation, imports, exports, and other custom procedures. Information collected is then used by customs authorities as well as government departments and agencies to monitor trade within the EU region.

The application process is simple but must still be done under the guidance of an expert. Any legal representative of a company or an individual acting on the letter of an attorney is allowed to apply for the EORI number. Simply contact the Estonian Tax and Customs Board service to file an application. The application typically takes three days to process.

At Impex Consult, we will help you gather all the necessary documents early enough to ensure speedy processing of both the VAT and EORI numbers. Contact us today to learn more.