Blog
Contact person and corporate secretary
Virtual Office
Hire contractors and employees with ease
HR
Create contracts in
a matter of minutes
Contracts
Issue and send invoices with
no limits. Manage them with ease
Invoicing
Take care of all VAT
problems with our tools
VAT-Related Tools
Focus on your sales and we’ll take care of the reports
E-Commerce Accounting
Take care of all accounting reports for your company
Accounting for SMEs
Blog
We’ll solve complicated legal issues for Estonian IT companies
Legal Services
Start your company
with ease on Enty
Register a Company
Register your trademark with ease
Trademark Registration
Take care of overdue or one-time reports with Enty
Annual Accounting Reports
I liked the idea of cooperating with friends, young company and I decided to move forward with you.
And I'm totally satisfied, honestly. You were doing follow-ups and helping me with everything all the time.
Meet our customer!
Let’s grow together!
Become a Partner
Explore useful articles and guides on managing your company
Blog
Samantha Asensi
Useful business glossary to help you
Glossary
Recommend Enty to your friends and receive bonuses from Enty
Invite a Friend
Find out what our
clients are doing
Enty Hub
Rewards
Explore discounts and offers from Enty’s partners

Enty Shorts: 5 Easy Rules for VAT Invoicing in Estonia

July 14, 2022 · 1 min read

Don't miss new articles and discounts. Subscribe to our newsletter!
We use cookies to provide the best
website experience. Explore notice.
We use cookies to provide the best website experience. Explore notice.
Yo! This is our short about VAT requirements to invoice in Estonia. Just open this memo next time you are stuck on the ‘VAT row’ in the invoice.

Rule 0.

If your company doesn't have VAT yet, don't worry about the VAT row in invoices. Always put ‘None’.

Estonian company is not required to have a VAT number. Check whether your company needs a VAT here. By the way, obtaining VAT usually indicates your business is growing. Next, we examine the rules for companies with a VAT number.

Rule 1.

If your client is from Estonia, the standard VAT rate for common goods and services will be 20%. Lower VAT long-list. Automated check.

Rule 2.

If your client is not from Estonia, the VAT rate depends on the type of products that you provide. There are detailed tables both for goods and services, but there’s also a big risk to be buried in all their rules.

That’s probably a good idea to consult once with a professional accountant and clearly determine your type of goods or services.

Rule 3.

If for any reason a VAT rate is NOT 20%, then it is required to explain why it is not 20% in the invoice. That is you should refer to a clause. As a rule, you refer to one of the two:

  1. If you sell something to a company from the EU and it has a VAT number, the VAT rate will be 0% due to the ‘reverse charge’ clause;
  2. If you sell something outside the EU, the VAT rate will be 0% for the reason (clause) - Article 146 of the EU VAT Directive.

Rule 4.

If you create VAT invoices, i.e. your company is registered for VAT, then you should file declarations every month. The deadline is the 20th day of the following month. You also have to pay taxes every month.

Rule 5.

If you have a complex scheme for using VAT, for example, when 2+ countries are involved, then look at OSS and IOSS schemes. By all means, it fits perfectly for e-commerce companies.
Related Articles