VAT registration of foreign traders

A person, except a foreign trader, who has no permanent establishment in Estonia, whose taxable supply exceeds 250 000 kroons (€15 978) (as calculated from the beginning of the calendar year) must register for VAT from the date when their taxable supply reaches this threshold.

A foreign trader must register for VAT in the following circumstances:

– when a trader, with no permanent establishment in Estonia and liable to taxation in another country, makes a taxable supply in Estonia that is not taxed by the Estonian taxable person or a limited taxable person upon acquiring the goods or services. The foreign trader must register from the date when the taxable supply was made;

– when a trader, liable to VAT in another Member State, makes a distance sale to a person in Estonia who is not registered for VAT purposes (excluding goods subject to excise duties), and the taxable supply of the distance sale exceeds 550 000 kroons (€35 151) as calculated from the beginning of the calendar year. The foreign trader must register from the date when their taxable supply reached this threshold;

– when a trader, liable to VAT in another Member State, makes a distance sale of goods subject to excise duties to a natural person in Estonia for personal purposes. The foreign trader must register from the date when the taxable supply was made;

– when a trader, liable to VAT in another Member State, makes distance sale to an Estonian (excluding goods subject to excise duties), the trader can register for VAT voluntarily. The foreign trader should enclose a certificate from the competent authority in the Member State in which they are liable to taxation, confirming that the competent authority is aware that the foreign trader will be registered for VAT in Estonia.

A trader must submit a VAT registration application to the Tax Board within three working days from the date on which the criteria for VAT registration was fulfilled (compulsory registration). However, the trader may also voluntarily register for VAT, even if the criteria are not fulfilled.

Upon submission of a registration application a natural person, or the representative of a legal person or a state, rural municipality or city agency, must present an identification document. The contractual representative of a legal person or a state, rural municipality or city agency also needs to provide a document certifying their authority, together with their identification document. A person liable for VAT in another country without a permanent establishment in Estonia, may appoint a tax agent. The tax agent must be approved by the Tax Board.

The Tax Board will register the taxable person and enter their data in the register of taxable persons (hereafter registration) within three working days of receiving the application.

Read more from Estonian Tax and Customs Board (VAT in the European Community)