VAT Returns & Recovery in Estonia

All businesses, whether resident or non-resident, that are registered in Estonia are obligated to regularly submit returns to report taxable transactions and reverse charge invoices. The Estonian Tax and Customs Board specifies that businesses registered in Estonia are required to submit returns on a monthly basis. There is no annual reporting requirement in Estonia.

Read more about VAT recovery and VAT returns in Estonia in our comprehensive guide.

VAT guide Estonia

VAT Returns in Estonia

Although electronic filing is not mandatory according to the VAT Act in Estonia, businesses that have been recognized as taxable persons for a minimum of twelve (12) months must submit their returns electronically. However, if the entity has been a taxable person for twelve months, it has the option to submit returns in paper format. The Estonian Tax and Customs Board recommends utilizing the “e-Tax Portal” for electronic submission.

Filing Deadline

Monthly VAT return in Estonia must be submitted and paid on the 20th following the reporting period. VAT due for the period can be paid to tax authorities by bank transfer, by bank link, or by credit card with the help of the “E-Tax Board” or in person via card payment terminals or cash in service bureaus and customs offices. Payment on account is not required in Estonia.

Interests and Penalties

If the Estonian tax authorities detect an error, such as failure to register or to submit a tax return, they have the right to impose a penalty of up to 3,200 euros, as well as interest.

Section 117 of the Taxation Act, the daily interest rate for unpaid VAT is 0.06%.

Exempt Supplies or Equivalent

Supplies that are exempt from VAT in Estonia include the following:

  • Immovable property or parts of immovable property. However, it is possible to opt for the taxation of certain immovable property sales or leases if the tax authorities are notified in advance.
  • Leasing or letting, or the establishment of a usufruct on certain immovable property or parts of the immovable property. However, it is possible to opt for the taxation of these transactions if the tax authorities are notified in advance.
  • Insurance services.
  • Postal services.
  • Health and welfare services, which also cover the supply of human organs, tissue, blood, and milk.
  • Betting, gaming, and lotteries.
  • Securities and financial services, excluding sales of greenhouse gas emissions units and related transactions. It is possible to opt for the taxation of these transactions if the tax authorities are notified in advance.
  • Specific social services.
  • Services related to shelters for the protection of children and young persons.
  • Education services, other than training provided for business purposes.
  • Transportation of sick, injured, or disabled persons in vehicles specially designed for such purposes and which meet the requirements established on the basis of the Traffic Act.

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VAT Recovery in Estonia

Taxable persons in Estonia can claim an input tax from the government. Input tax is the VAT imposed on goods and services provided to the business for taxable business purposes. The recovery of input tax happens whenever a taxable person deducts the VAT from purchases and imports from the VAT charged on the supplies made by the taxable person.


In order for input tax to be eligible for a credit, certain conditions need to be satisfied, including:

  • The recipient or acquirer of the goods or services must be registered for VAT in Estonia.
  • The supplies must also have been used for business purposes of the recipient.
  • The claimant must maintain appropriate documentation as evidence of the input tax incurred, such as retaining invoices.
  • Additionally, the input tax should be related to either taxable supplies or to supplies outside Estonia that would have been subject to tax if they had been made in Estonia.

Exempt Supplies or Equivalent

If certain conditions are met, an independent association of members may offer services to its members. These conditions typically include:

  • Ensuring that the services are essential to the member’s core activities, that the member’s activities are either exempt from taxation or not subject to VAT.
  • The cost of the services does not exceed the amount incurred by the association in providing them.
  • Additionally, the tax exemption should not unfairly affect competition.

Input tax deductions can be claimed in the following transactions:

  • The VAT charged on goods and services that is supplied in Estonia.
  • VAT paid on the importation of goods.
  • VAT calculated on the intra-Community acquisitions of goods.
  • VAT charged on purchases under reverse-charge procedure.
  • 50% of the VAT paid on acquiring or renting a passenger car or goods or services related to the cars.

Mixed Transactions

In cases wherein a business is engaged in both taxable and exempt transactions, only the VAT paid on the taxable transactions are deductible.


Deadline for refund claims:

  • EU – 30 September of the year after the year in which the claimant received the invoice.
  • NonEU – 30 September of the year after the year in which the claimant received the invoice.

Filing Procedures:


  • VAT must be paid by the taxable person to the country where they are located.
  • The taxable person in Estonia has the right to deduct the VAT paid on imported goods, procurement of goods, or receipt of services in Estonia, subject to the same conditions, from their calculated VAT.
  • An electronic application must be submitted to the Estonian tax authority through the VAT portal of the respective EU member state.
  • The application should be submitted no later than September 30 of the calendar year following the refund period.
  • The refund process must comply with Council Directive 2008/9/EC.
  • The decision-making process typically takes approximately four months from the receipt of the application. However, in cases where the authority requests additional information, the timeline can be extended to up to eight months.
  • The VAT refund amount should be a minimum of EUR 50 per calendar year or at least EUR 400 for refund periods of only three months.
  • The payment must be made within ten working days after the authorities’ decision.


  • A taxable person can request an input VAT by filing an application form KMT.
  • KMT form can either be in Estonian or English


The Application must have the following attachments:

    • Original Invoices.
    • Power of Attorney (applicable to authorized representatives)
    • Certification from the country where the claimant is established proving that the claimant is a taxable person when the purchase was made (must be issued within 12 months).

The following conditions must also be met:

      • The refund amount must be at least EUR 320 for the year (no maximum amount).
      • The country where the claimant is established must also offer refunds to Estonian residents (for the purpose of reciprocity).
  • The claimant will be notified of the decision within six months after the application.
  • The application must be submitted before 30 September of the year following the period of refund.


Last Updated: 30/10/2023


The information provided by Global VAT Compliance B.V. on this webpage is intended for general informational purposes only. Global VAT Compliance B.V. is not responsible for the accuracy of the information on these pages, and cannot be held liable for claims or losses deriving from the use of this information. If you wish to receive VAT related information please contact our experts at support@gvc.tax

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