An Estonian company must register as a VAT payer and obtain a VAT number (KMKR in Estonian) if its annual turnover of products and services supplied in Estonia exceeds 40,000 euros. A board member or a trustee of the company must apply for registration to the Tax and Board Department within three days from the moment the obligation arises.
Any Estonian company can voluntarily apply for registration as a VAT payer, even if its turnover does not reach such a volume. In this case, the Tax and Customs Board can ask the company to prove that it starts or conducts the entrepreneurial activity in Estonia.
After obtaining a VAT number, the company must add VAT to the cost of its goods or services according to the rates stated by law. Also, it is necessary to submit monthly tax declarations on taxable turnover and transactions with the partners from the EU countries.
Obligation to register as a VAT payer arises when conducting the following transactions:
- sale of goods in the territory of Estonia, also via the internet,
- intra-union sale of goods from Estonia, also via the internet: sale of goods to VAT payers from other EU countries with the compulsory departure of goods from Estonia to other countries,
- supply of services in Estonia to legal and natural persons, also via the internet,
- supply of services to VAT payers from other EU countries, also via the internet.
The cost of submitting an application to the Tax and Customs Board for registration as a VAT payer and obtaining a VAT number 300 euros + VAT.
Why choose Magrat?
- Magrat has extensive experience in cooperating with employees of the Tax and Customs Board and obtaining VAT numbers for client companies. Due to this, we can provide qualitative consultation to our сlients in preparing the necessary package of documents and clarifications if the department has additional questions.
- We offer comprehensive support: our clients can avail themselves of our one-stop services.
What is included in the price?
- analyzing the client’s company to determine if registration is obligatory or voluntary,
- consulting the client in preparing the package of documents and sending it to the Tax and Customs Board,
- preparing and submitting an application to the Tax and Customs Board through the e-MTA system,
- answering the additional questions of the Tax and Customs Board based on the information provided by the Client.
What is not included in the price?
- preparing documents that prove the necessity of obtaining a VAT number (contracts, invoices, business plans, financial forecasts and other documents),
- providing guarantees that a VAT number will be assigned, as the final decision is made by the Tax and Customs Board based on the analysis of the client’s business activity,
- visiting the Tax and Customs Board office for submitting an application in the paper format.
What is required from the client?
- to provide Magrat’s employees with access to the electronic system e-MTA of the Tax and Customs Board for submitting an application,
- to present the documents, proving the necessity of obtaining a VAT number, including:
- preliminary contracts with customers and suppliers,
- contracts (for the lease of a warehouse and/or an office, supply, the performance of works, etc.), correspondence with the partners, a bank statement that proves the existing activity, a website of the company or a proof that it is being developed,
- written business plan and brief financial forecast for the next two years, including a description of the offered goods or rendered services, internal structure and marketing policy of the company, a list of suppliers and customers, including their contact details for verification of information (for example, a supplier’s website).
You will receive a notification from the Tax and Customs Board about the assignment of a VAT number and registration as a VAT payer.
Upon assignment, your VAT number will be displayed on the website of the Tax and Board Department—https://apps.emta.ee/saqu/public/kmkrnr?lang=ru, and in the common European VAT Information Exchange System on website https://ec.europa.eu/taxation_customs/vies/. VAT number format—EE123456789.
The Tax and Customs Department decides on registration within 5 working days upon receipt of the application. If registration requires additional documents proving the start or existence of entrepreneurial activity, the department will send the request to the company within 5 working days via telephone or mail/e-mail. In this case, the decision about registration will be taken within 5 working days after providing answers and additional documents to the department.
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