Estonia Sales Tax VAT

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Estonia has a simple, broad-based value-added tax with a 20 percent tax rate, which is slightly above the OECD average.

According to Estonian law, if sales or services are made to companies (with VAT ID) outside of Estonia, the Estonian company needs a VAT ID after annual sales exceed 40 000 EUR also for the following list of services:

  1. grant of the use of intellectual property or transfer of the right to use intellectual property;
  2. advertising services;
  3. services of consultants, accountants, lawyers, auditors and engineers, translation services, as well as data processing or the supplying of information;
  4. financial services, except for leasing safes, or insurance services, including reinsurance and insurance intermediation services;
  5. allowing use of manpower;
  6. the hiring or leasing of or establishment of a usufruct on movables, except means of transport;
  7. electronic communications services, including assignment of rights to use transmission lines;
  8. electronically supplied services;
  9. allowing access to natural gas or electricity, heating and cooling energy network connections, and transmission of natural gas or electricity, heating or cooling energy through networks and services directly related thereto;
  10. transfer of permitted limit values of emissions of greenhouse gases regulated by the Ambient Air Protection Act;
  11. refraining from the services specified in clauses 1)-10) of this subsection, waiving the exercise of a right or tolerating a situation for a charge
If a company has no VAT ID, It is allowed to sell goods and/or services in Estonia or in the EU without VAT, as long as total annual sales does not exceed 40 000 EURO.

If you wish to apply for Sales Tax in Estonia, please register in the form below the reasons for needing sales tax VAT in Estonia or send us an email.