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.
Estonian VAT — The Key Facts
Estonia’s standard VAT rate increased from 20% to 22% on 1 January 2024. The reduced rate of 9% applies to a specific limited list (accommodation, certain publications, some medicines). The Käibemaksuseadus (Value Added Tax Act) governs all VAT obligations in Estonia.
Registration is mandatory when your taxable supplies in a rolling 12-month period exceed €40,000. The application (KM-R form) must be submitted before the threshold is crossed. We handle the full registration process for €400. Voluntary registration is available below the threshold.
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 KMD filing triggers fines of €200–2,000 plus 0.06%/day interest on unpaid VAT.
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.
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 22% VAT on that invoice.
Once VAT-registered, your OÜ can reclaim the input VAT on all business purchases — accounting fees, software, equipment, office costs, services. For a company with €30,000/year in expenses, input VAT reclaim at 22% could recover over €5,400/year in VAT.
What VAT services does an Estonian OÜ need? At minimum: registration when the €40,000 threshold is approaching (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.
Section 1 — Estonian VAT Rates
22% standard, 9% reduced, 0% zero-rated, exempt — what applies when
VAT Rate Reference Table
Estonia’s VAT rates are set by the Käibemaksuseadus. The standard rate of 22% has applied since 1 January 2024 — it was 20% before that date. The reduced rate of 9% applies to a very specific list. Zero-rating applies to exports and EU B2B reverse charge supplies.
| Rate | Category | Käibemaksuseadus Reference | Examples |
|---|---|---|---|
| 22% | Standard rate — applies to most goods and services | §15(1) — effective 1 January 2024 (increased from 20%) | IT services, consulting, SaaS subscriptions, e-commerce goods, physical products, advertising |
| 9% | Reduced rate — specific categories only | §15(2) and §15(3) — limited list | Accommodation services (hotels, Airbnb); certain periodicals; certain medicines; some cultural events |
| 0% | Zero rate — taxable but no VAT charged | §15(4) — exports and specific transactions | Goods exported outside 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 — 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 | 22% 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 | 22% Estonian VAT (home country rate until threshold crossed) | Invoice at 22%; declare on Estonian KMD | No — consumer; cannot verify VAT |
| B2C digital service to EU consumer — above €10K/year EU-wide | OSS: destination-country VAT rate for each EU country | Invoice at destination rate (e.g. 25% Sweden, 24% Finland); declare via OSS | No — consumer; register for OSS instead |
| Physical goods sold to EU consumers (e-commerce) — above €10K | OSS: destination-country rate | Charge destination-country rate; declare via OSS quarterly | No — consumer |
| B2C service or goods to non-EU consumer | Outside scope of EU VAT | No VAT charged | No |
Section 2 — 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 22% rate | KM22 | All Estonian B2B and B2C sales at standard rate; output VAT = Row 1 × 22% |
| Row 1a | Taxable turnover at reduced 9% rate | KM9 | Accommodation, qualifying publications; output VAT = Row 1a × 9% |
| Row 2 | Zero-rated intra-EU supplies (reverse charge sales to EU businesses) | KM0 EU | IT services, consulting to VAT-registered EU businesses — 0% output VAT |
| Row 3 | Exported goods outside EU (zero-rated) | KM0 EX | Physical goods exported to US, UK, UAE — 0% output VAT |
| Row 4 | Exempt supplies | Exempt | Bank services paid to clients; residential rental income — no output VAT, no input VAT reclaim |
| Row 5 | Deductible input VAT (reclaimable input VAT on purchases) | V22 | Purchase invoices from VAT-registered suppliers; input VAT on business purchases |
| 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 |
| Row 7 | Imports from outside EU (VAT paid at customs) | Import VAT | Goods imported from US/China; customs VAT paid on import is reclaimable here |
| Net VAT payable | Row 1+1a output − Row 5+6+7 deductible input | — | Positive = pay to EMTA by 20th; Negative = claim refund from EMTA |
What We Do Each Month for Your KMD
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.
Section 3 — 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 taxable turnover in a rolling 12-month period exceeds €40,000. Taxable turnover includes all standard-rated and zero-rated supplies — it excludes exempt supplies and out-of-scope supplies. The application must be filed before the threshold is reached, not after.
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 | Rolling 12-month taxable turnover approaches €40,000 | Compliance — legally required | Apply before threshold crossed; from registration date, charge 22% on all taxable sales |
| Voluntary — B2B focused business | Any time; typically when OÜ has significant purchases and all clients are VAT-registered | Reclaim input VAT on all business expenses — 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 |
| Mandatory — EU service registration | When EU cross-border B2C digital services exceed €10,000/year | Compliance for EU digital service sellers; OSS allows single quarterly return | Register for OSS via EMTA; single return covers all 27 EU countries |
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:
Complete preparation of the VAT registration application form with your OÜ details, expected turnover, and nature of business.
Filed via EMTA e-Tax portal using our esindusõigus delegation. We monitor the application and follow up with EMTA if needed.
We advise on the optimal registration date based on your turnover trajectory and VAT reclaim opportunities on any planned purchases.
Explain what changes from registration date: how to update your invoices, how KMD works, and what your first return will look like.
We confirm receipt of your EE VAT number and provide a registration confirmation. Your number is then active on VIES immediately.
Section 4 — 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 has operated a single €10,000/year threshold for B2C digital services and e-commerce across all EU member states. Below this threshold, you can apply your home country’s VAT rate (22% Estonian) to all EU B2C sales. 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 |
|---|---|---|---|
| Below €10,000/year total across all EU countries | Apply 22% Estonian VAT to all EU consumers | Declare on Estonian KMD Row 1 | No OSS needed; monitor turnover monthly |
| Above €10,000/year OR you choose to register voluntarily | Apply destination-country VAT rate for each EU buyer’s country (e.g. 24% for Finnish buyer) | OSS quarterly return via EMTA within 30 days of Q-end | Register for OSS through EMTA e-Tax portal (we do this 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 selling digital services or goods to EU consumers above €10K/year | Quarterly — within 30 days of Q-end |
| IOSS | Import One-Stop-Shop | Imports of physical goods ≤ €150 in value to EU consumers | When selling low-value physical goods from outside EU direct to EU consumers (e.g. Shopify from a non-EU warehouse) | Monthly — by end of following month |
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.
Section 5 — VAT Service Prices
Every VAT service with transparent pricing
All VAT Services — Prices Excluding 22% VAT
Our VAT services are priced as standalone services. If you are on a monthly accounting package, KMD filing is included (from Starter tier), and OSS/IOSS returns are included in the Scale tier or available as a €80/return add-on. All prices below exclude 22% VAT which applies to our fees.
| VAT Service | Price | What Is Included |
|---|---|---|
| VAT registration (KM-R form — mandatory or voluntary) | €400 | Prepare and submit KM-R application via EMTA e-Tax portal; advise on registration timing; confirm EE VAT number receipt |
| Monthly KMD (VAT return) preparation and filing | €80/return | Reconcile output VAT from sales; verify input VAT from purchases; prepare KMD; file via EMTA by 20th |
| OSS registration (One-Stop-Shop for EU B2C) | €250 | Register through EMTA e-Tax portal OSS module; configure quarterly reporting; advise on rate requirements by EU country |
| OSS quarterly return | €80/return | Compile EU B2C sales by country; apply destination-country rates; file within 30 days of Q-end via EMTA |
| IOSS registration (Import One-Stop-Shop — imports ≤ €150) | €300 | Register through EMTA IOSS module; advise on eligibility; configure import declarations |
| IOSS monthly return | €80/return | Compile import VAT data; file monthly via EMTA IOSS module |
| VAT de-registration | €150 | Prepare and file KM-R cancellation form; advise on output VAT on business assets at deregistration; final KMD |
| VAT advisory — VIES verification and reverse charge | Included in monthly package | Verify EU customer VAT numbers on VIES before zero-rating; apply correct reverse charge treatment |
| VAT advisory — ad hoc consultation | €120/hr | Complex transactions; unusual supply chains; OSS/IOSS eligibility questions; margin scheme assessment |
| VAT health check (review of prior KMD filings) | Quoted on scope | Review prior months of KMD for systematic errors; identify overclaimed input VAT; identify missed output VAT |
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 rolling 12-month calculation, 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.