VAT Services for Estonian OÜs
Complete Estonian VAT services: registration with EMTA, monthly KMD returns, EU cross-border VAT compliance, OSS and IOSS setup, e-commerce VAT, and VAT advisory for Estonian OÜs operating locally and internationally.
KMD Returns €40K Threshold VAT Registration €400 OSS IOSS Reverse Charge VIES E-commerce
24% Standard Rate
13% Reduced Rate
€40K Registration Threshold
€400 Registration Fee
20th KMD Deadline
OSS EU B2C One-Stop-Shop
Estonian VAT: 6 Key Facts
Standard VAT rate is 24% since 1 July 2025
Estonia’s standard VAT rate increased from 22% to 24% on 1 July 2025. The reduced rate of 13% applies to a specific limited list (accommodation, certain publications, some medicines). The Käibemaksuseadus (Value Added Tax Act) governs all VAT obligations in Estonia.
Estonia’s standard VAT rate increased from 22% to 24% on 1 July 2025. The reduced rate of 13% applies to a specific limited list (accommodation, certain publications, some medicines). The Käibemaksuseadus (Value Added Tax Act) governs all VAT obligations in Estonia.
Mandatory registration at €40,000 taxable turnover
Registration is mandatory when the relevant taxable supplies whose place of supply is Estonia exceed €40,000 from the beginning of the calendar year. Once the €40,000 threshold is exceeded, the VAT registration application must be submitted within the statutory registration period; VAT liability arises from the date the threshold is exceeded. We handle the full registration process for €400. Voluntary registration is available below the threshold.
Registration is mandatory when the relevant taxable supplies whose place of supply is Estonia exceed €40,000 from the beginning of the calendar year. Once the €40,000 threshold is exceeded, the VAT registration application must be submitted within the statutory registration period; VAT liability arises from the date the threshold is exceeded. We handle the full registration process for €400. Voluntary registration is available below the threshold.
KMD, monthly VAT return due by the 20th
Every VAT-registered OÜ must file the KMD (käibemaksudeklaratsioon) by the 20th of each month for the prior month. This applies even in months with zero VAT; nil returns are still mandatory. Late filing may result in enforcement measures or penalties, while interest accrues on unpaid VAT at the applicable statutory rate.
Every VAT-registered OÜ must file the KMD (käibemaksudeklaratsioon) by the 20th of each month for the prior month. This applies even in months with zero VAT; nil returns are still mandatory. Late filing may result in enforcement measures or penalties, while interest accrues on unpaid VAT at the applicable statutory rate.
EU cross-border VAT requires OSS or reverse charge
Selling services or goods to EU consumers above €10,000/year requires OSS (One-Stop-Shop) registration and quarterly returns via EMTA. Selling to EU VAT-registered businesses requires correct reverse charge treatment: no VAT charged, but the buyer self-assesses in their country.
Selling services or goods to EU consumers above €10,000/year requires OSS (One-Stop-Shop) registration and quarterly returns via EMTA. Selling to EU VAT-registered businesses requires correct reverse charge treatment: no VAT charged, but the buyer self-assesses in their country.
VIES verification is mandatory for EU zero-rating
Before applying 0% VAT (reverse charge) on a B2B invoice to an EU company, you must verify the buyer’s VAT number on VIES (vies.ec.europa.eu). If the number is invalid or unverifiable and you apply 0%, EMTA can assess the full 24% VAT on that invoice.
Before applying 0% VAT (reverse charge) on a B2B invoice to an EU company, you must verify the buyer’s VAT number on VIES (vies.ec.europa.eu). If the number is invalid or unverifiable and you apply 0%, EMTA can assess the full 24% VAT on that invoice.
Input VAT is reclaimable on business purchases
Once VAT-registered, your OÜ may deduct input VAT on purchases used for taxable business activities, subject to the statutory deduction restrictions and documentation requirements: accounting fees, software, equipment, office costs, services. For a company with €30,000/year in expenses, input VAT reclaim at 24% could recover over €5,400/year in VAT.
Once VAT-registered, your OÜ may deduct input VAT on purchases used for taxable business activities, subject to the statutory deduction restrictions and documentation requirements: accounting fees, software, equipment, office costs, services. For a company with €30,000/year in expenses, input VAT reclaim at 24% could recover over €5,400/year in VAT.
What VAT services does an Estonian OÜ need? At minimum: registration when qualifying turnover exceeds €40,000 from the start of the calendar year (we handle this for €400), then monthly KMD by the 20th. If you sell to EU consumers above €10,000/year: OSS registration and quarterly returns. If you sell to EU businesses (B2B): correct reverse charge invoicing and VIES verification. We provide all of these as standalone services or as part of a full monthly accounting package.
VAT Services Pricing
VAT services – standalone and package options
Our VAT services are priced as standalone services. If you are on a monthly accounting package, KMD filing is included (from the Starter tier), and OSS/IOSS returns are included in the Scale tier or available as an €80/return add-on. All prices above exclude 24% VAT, which applies to our fees.
Our VAT services are priced as standalone services. If you are on a monthly accounting package, KMD filing is included (from the Starter tier), and OSS/IOSS returns are included in the Scale tier or available as an €80/return add-on. All prices above exclude 24% VAT, which applies to our fees.
Estonian VAT Rates
24% standard, 13% reduced, 9% reduced, 0% zero-rated and exempt: what applies when
VAT Rate Reference Table
Estonia’s VAT rates are set by the Käibemaksuseadus. The standard rate of 24% has applied since 1 July 2025, which was 22% before that date. The 13% rate applies to qualifying accommodation services, while the 9% rate applies to qualifying books and educational literature, certain medicinal products and medical devices, and qualifying press publications. Zero-rating applies to exports and EU B2B reverse charge supplies.
| Rate | Category | Käibemaksuseadus Reference | Examples |
|---|---|---|---|
| 24% | Standard rate, applies to most goods and services | §15(1), effective 1 July 2025 (increased from 22%) | IT services, consulting, SaaS subscriptions, e-commerce goods, physical products, advertising |
| 13% | Reduced rate for accommodation | §15(1¹) | Accommodation or accommodation with breakfast; separately supplied additional goods and services are excluded. |
| 9% | Reduced rate for qualifying goods and publications | §15(2) | Qualifying books and educational literature, listed medicines and medical devices, and qualifying press publications. |
| 0% | Zero rate, taxable but no VAT charged | §15(4), exports and specific transactions | Goods exported outside the EU; intra-EU supplies of goods to VAT-registered businesses; certain international transport |
| 0% (reverse charge) | EU B2B services, buyer self-assesses | §10 and EU VAT Directive Art. 196 | IT services to EU-registered businesses; consulting to EU VAT-registered company; SaaS to EU business customer |
| Exempt | No VAT charged and no input VAT reclaim | §16, specific exempt supplies | Financial services; insurance; healthcare; education (certain); residential property rental |
VAT Treatment by Transaction Type: A Quick Reference
The table below answers the most common VAT question: what VAT rate applies to this specific invoice? The answer depends on who you are selling to, where they are, and whether they are VAT-registered.
| Supply Type | VAT Treatment | Invoice Requirement | VIES Check Needed? |
|---|---|---|---|
| B2B service to Estonian company | 24% VAT output | Standard tax invoice: your EE VAT number, their VAT number, amount, rate, tax | Yes, verify their EE VAT number on EMTA VIES |
| B2B service to EU VAT-registered company (e.g. DE, FI, FR) | 0%, reverse charge, Art. 196 EU VAT Dir. | Invoice with note ‘VAT, reverse charge’ and their EU VAT number; no VAT amount shown | Yes, verify on VIES (vies.ec.europa.eu) before issuing invoice |
| B2B service to non-EU company (e.g. US, UK, UAE) | Outside scope of EU VAT, no Estonian VAT | Invoice with note ‘Outside scope of EU VAT’; no VAT charged or shown | No, outside EU VAT system |
| B2C digital service to EU consumer, below €10K/year EU-wide | Estonian VAT rules apply only if the supplier is established solely in Estonia, the combined qualifying cross-border sales do not exceed €10,000 in either the current or preceding calendar year, and destination taxation has not been chosen. | A VAT-registered supplier charges 24% on standard-rated digital services and declares them on KMD. An applicable small-business exemption may remove the obligation to charge VAT. | No, consumer; cannot verify VAT |
| B2C digital service to EU consumer, above €10K/year EU-wide | Destination-country VAT, unless an applicable exemption applies; OSS is optional. | Use the applicable destination rate (standard rates: Sweden 25%, Finland 25.5%); report through OSS or local VAT returns. | No, consumer; register for OSS instead |
| Physical goods sold to EU consumers (e-commerce), above €10K | For qualifying intra-EU distance sales, destination-country VAT applies unless an applicable exemption applies; OSS is optional. | Use the applicable destination rate; report through quarterly OSS returns or local VAT returns. | No, consumer |
| B2C service or goods to non-EU consumer | Goods exported from the EU: 0% if export conditions and evidence are met. Services: apply the relevant place-of-supply rule; non-EU residence alone does not remove Estonian VAT. | For qualifying exports, show 0% and the legal basis. For services taxable in Estonia, charge the applicable Estonian VAT; for services taxable outside Estonia, do not charge Estonian VAT. | No |
The KMD (VAT Return)
What the monthly KMD covers, how it is structured, and how we prepare it
KMD Structure, Row by Row
The KMD (käibemaksudeklaratsioon) is filed through the EMTA e-Tax portal by the 20th of each month. It reconciles output VAT (charged on sales) against input VAT (paid on purchases) to calculate the net amount due to or refundable from EMTA. Understanding the key rows helps you verify the accuracy of your KMD.
| KMD Row | Description | VAT Code | Typical Transactions |
|---|---|---|---|
| Row 1 | Taxable turnover at standard 24% rate | KM24 | All Estonian B2B and B2C sales at standard rate; output VAT = Row 1 × 24% |
| Row 2² | Taxable turnover at reduced 13% rate | KM13 | Accommodation or accommodation with breakfast; output VAT = Row 2² × 13%. Qualifying publications are generally taxed at 9% and reported in Row 2. |
| Rows 3 and 3.1 | Qualifying intra-Community supplies of goods and B2B services | KM0 EU | Report in Row 3 and additionally Row 3.1; intra-Community goods also in Row 3.1.1. Submit the required VD report. |
| Rows 3 and 3.2 | Exported goods outside the EU (zero-rated) | KM0 EX | Qualifying goods exports to the US, UK or UAE; report in Row 3 and additionally Row 3.2. |
| Row 8 | Exempt supplies | Exempt | Exempt financial services and residential rental income; input VAT attributable to exempt supplies is generally not deductible. |
| Row 4 | Total calculated VAT | – | VAT calculated on the taxable values in Rows 1, 1¹, 1², 2, 2¹ and 2² at the corresponding rates, including reverse-charge VAT. |
| Rows 5 and 5.1 | Deductible input VAT | V24 | Deduct eligible import VAT in Row 5 and disclose it in Row 5.1. Where import VAT is accounted for through KMD, also report the import VAT payable in Row 4¹. |
| Row 6 | EU acquisitions (goods bought from EU and reverse charge on B2B services received) | V RC | Software subscription from German supplier; cloud hosting from Irish provider, self-assessed VAT |
| Net VAT payable | Row 4 + Row 4¹ − Row 5 + Row 10 − Row 11 | – | Positive result: VAT payable in Row 12. Negative result: overpaid VAT in Row 13. Rows 6 and 7 contain taxable values, not additional input VAT deductions. |
What We Do Each Month for Your KMD
Collect all transaction data Sales invoices, purchase invoices, bank transactions, all posted in Merit Aktiva with correct VAT codes (KM24, KM13, V24, V RC, etc.) by the 7th of the month.
Reconcile output VAT Cross-check all sales invoices against the KMD Row 1 amount. Verify EU B2B invoices have VIES-verified VAT numbers before applying 0% reverse charge.
Verify input VAT Check all purchase invoices for correct input VAT coding. EU B2B service purchases are V RC (reverse charge self-assessment). Purchases from non-EU suppliers must be assessed according to the applicable import VAT or reverse-charge rules; they are not automatically outside the scope of Estonian VAT.
Prepare and file KMD by the 20th KMD is submitted via the EMTA e-Tax portal using our esindusõigus delegation. You receive a copy of the filed return. Any net VAT payment is due to EMTA by the same 20th deadline.
Advise on VAT position
If your KMD shows a refund (negative net VAT), we alert you. Consistent refunds may trigger EMTA review. We advise on documentation to support the position.
If your KMD shows a refund (negative net VAT), we alert you. Consistent refunds may trigger EMTA review. We advise on documentation to support the position.
VAT Registration in Estonia
When you must register, when you should register voluntarily, and how we handle it for €400
Mandatory vs Voluntary Registration
VAT registration in Estonia is mandatory when the relevant taxable supplies whose place of supply is Estonia exceed €40,000 from the beginning of the calendar year. Taxable turnover includes all standard-rated and zero-rated supplies. It excludes exempt supplies and out-of-scope supplies. The registration obligation arises when the statutory threshold is exceeded, and the application must then be submitted within the statutory registration period.
Voluntary registration is available at any turnover level and is often worthwhile for B2B businesses where all clients are VAT-registered (they reclaim your VAT, so it does not make your prices more expensive) and where you have significant business purchases (you reclaim the input VAT on them).
| Registration Type | When It Applies | Key Benefit | Key Requirement |
|---|---|---|---|
| Mandatory, threshold-based | Qualifying turnover with a place of supply in Estonia exceeds €40,000 from the start of the calendar year. | Compliance, legally required | Apply within three working days after the registration obligation arises. Account for VAT from that date at the rate applicable to each supply. |
| Voluntary, B2B focused business | Any time; typically when OÜ has significant purchases, and all clients are VAT-registered | Deduct eligible input VAT on purchases used for taxable business activities, subject to statutory restrictions, can recover thousands per year | No minimum turnover; must file monthly KMD even in nil months from registration |
| Voluntary, early registration (new OÜ) | On incorporation or soon after | Start reclaiming input VAT from day one on setup costs, equipment, software | May be beneficial even before first revenue if significant startup costs expected |
| Destination-country VAT; optional OSS registration | Qualifying cross-border B2C digital services and intra-EU distance sales exceed the combined €10,000 threshold in the current or preceding calendar year, or the threshold rules do not apply. | OSS simplifies reporting of qualifying destination-country VAT. | Use OSS or register and report locally where required, unless an applicable exemption applies. OSS registration is voluntary. |
Our VAT Registration Service: €400
We handle the complete KM-R form preparation and submission to EMTA. The registration process takes 3–5 working days once the application is submitted. You receive your Estonian VAT number (EE-prefixed, 9 digits) directly from EMTA. Here is what our €400 service includes:
KM-R form preparation
Complete preparation of the VAT registration application form with your OÜ details, expected turnover, and nature of business.
Complete preparation of the VAT registration application form with your OÜ details, expected turnover, and nature of business.
EMTA portal submission
Filed via the EMTA e-Tax portal using our esindusõigus delegation. We monitor the application and follow up with EMTA if needed.
Filed via the EMTA e-Tax portal using our esindusõigus delegation. We monitor the application and follow up with EMTA if needed.
Timing advice
We advise on the optimal registration date based on your turnover trajectory and VAT reclaim opportunities on any planned purchases.
We advise on the optimal registration date based on your turnover trajectory and VAT reclaim opportunities on any planned purchases.
Post-registration guidance
Explain what changes from the registration date: how to update your invoices, how KMD works, and what your first return will look like.
Explain what changes from the registration date: how to update your invoices, how KMD works, and what your first return will look like.
VAT number confirmed
We confirm receipt of your EE VAT number and provide a registration confirmation. Once VAT registration is effective and the VAT number is reflected in the relevant systems, it can be validated through VIES.
We confirm receipt of your EE VAT number and provide a registration confirmation. Once VAT registration is effective and the VAT number is reflected in the relevant systems, it can be validated through VIES.
EU Cross-border VAT and OSS
Selling to EU consumers and businesses: the VAT rules
The €10,000 EU B2C Threshold: When OSS Is Needed
Since 1 July 2021, the EU applies a €10,000 EU-wide threshold to intra-EU distance sales of goods and certain telecommunications, broadcasting and electronically supplied services to consumers. Where the statutory €10,000 threshold rules apply and the threshold has not been exceeded, qualifying supplies may remain taxable in the supplier’s Member State, subject to the applicable conditions. Once your EU B2C sales exceed €10,000/year in aggregate, you must either register for VAT in each destination country (impractical) or register for OSS through EMTA, a single quarterly filing covering all 27 EU countries.
| Your EU B2C Sales | VAT Treatment | Filing Obligation | Action |
|---|---|---|---|
| Combined qualifying cross-border sales do not exceed €10,000 in the current or preceding calendar year | Estonian VAT rules apply if the supplier is established solely in Estonia and the other threshold conditions are met, unless destination taxation is chosen. Apply the rate or exemption appropriate to the supply. | If Estonian VAT-registered, report on KMD at the applicable rate. | Monitor qualifying cross-border digital/TBE services and intra-EU distance sales together; the threshold does not cover all B2C supplies. |
| Threshold exceeded, or destination-country taxation chosen | Apply the destination-country VAT rate or an applicable exemption (Finland’s standard VAT rate is 25.5%). | If using OSS, file quarterly by the last day of the following month; otherwise comply with local VAT reporting requirements. | OSS is optional. We handle OSS registration through EMTA for €250. |
OSS vs IOSS: Which Scheme Applies?
| Scheme | Full Name | Covers | When to Use | Quarterly vs Monthly |
|---|---|---|---|---|
| OSS | One-Stop-Shop | EU B2C digital services and e-commerce goods (excl. imports) | When making qualifying cross-border B2C supplies for which destination-country VAT applies and the business chooses to use OSS. | Quarterly, by the last day of the month following the quarter. |
| IOSS | Import One-Stop-Shop | Imports of physical goods ≤ €150 in value to EU consumers | When selling low-value physical goods from outside the EU directly to EU consumers (e.g., Shopify from a non-EU warehouse) | Monthly, by the end of the following month |
OSS covers all 27 EU countries with one quarterly return, no need to register in each EU country separately
Before OSS (pre-2021), a business selling to EU consumers in 10 different countries needed to register for VAT in each country separately, potentially 10 VAT registrations, 10 different filing portals, 10 different rules. OSS replaces all of this with a single registration through EMTA and a single quarterly return that covers all 27 EU member states. For Estonian OÜs with EU-wide digital or e-commerce sales, this is a significant administrative simplification.
Before OSS (pre-2021), a business selling to EU consumers in 10 different countries needed to register for VAT in each country separately, potentially 10 VAT registrations, 10 different filing portals, 10 different rules. OSS replaces all of this with a single registration through EMTA and a single quarterly return that covers all 27 EU member states. For Estonian OÜs with EU-wide digital or e-commerce sales, this is a significant administrative simplification.
VAT Topic Guides
Explore each VAT topic in detail through the guides below
VAT Registration in Estonia
Full guide to Estonian VAT registration: mandatory threshold, voluntary registration, how to complete the KM-R form, EMTA processing time, and what changes from your registration date. We register for €400.
VAT Reporting (KMD)
How the monthly KMD works: output VAT reconciliation, input VAT reclaim, reverse charge self-assessment, nil return obligations, and how to read your filed KMD. Monthly KMD from €80/return.
VAT for E-commerce
E-commerce-specific VAT: OSS for EU consumers, IOSS for imports, Shopify and Amazon seller VAT obligations, marketplace facilitator rules, and how to configure your store’s VAT settings correctly.
VAT Threshold in Estonia
Everything about the €40,000 VAT registration threshold: how to calculate taxable turnover, the calculation from the start of the calendar year, what counts and what doesn’t, and the consequences of missing the registration obligation.
EU VAT and OSS
Complete guide to EU cross-border VAT: the €10,000 B2C threshold, OSS registration and quarterly returns, IOSS for imports, destination-country VAT rates, and how to comply without registering in every EU country.