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Generic Tax Name VAT
Tax name in the national language Käibemaks
Tax name in English Value added tax
Member State EE-Estonia
Tax in force since 2004/05/01
If abolished, date on which the tax ceases to apply
Business version date 2015/01/01
Version date 2015/02/17
This file was last updated on

Type of tax
Direct taxes Personal income tax
Corporate income tax
Other

Indirect taxes VAT
Excise duty (EU harmonised)
Alcoholic beverages
Energy products and electricity
Manufactured tobacco
Other

Social security contribution Employers
Employees
Other
 
Legal base

Value Added Tax Act (Käibemaksuseadus)

Passed 10 December 2003,

Entered into force 1 May 2004,

Last amended: 18.12.2014 (entered into force in 01.01.2015)

 
Who sets
The tax rate is set by




The tax base is set by




The reliefs are set by




Comments
 
Beneficiary





Comments

The State.

 
Geographical Scope
Territories excluded (article 6 2006/112/EC)

None



Comments
Estonia.
 
Taxpayers
Included taxable persons doing occasional transactions (article 12 2006/112/EC)


Comments

Special scheme for SMEs (article 281 2006/112/EC and following) None
Exemption
Graduated relief
Turnover threshold: 16,000.00  EUR/Natcur
Comments

Common Flat-rate scheme for farmers (article 295 2006/112/EC and following) None
All categories
Some categories
Flat rate compensation percentage (general):
Flat rate compensation percentage for forestry:
Flat rate compensation percentage for fisheries:
Comments

There is a special scheme on the following





Comments

Special derogations to continue to tax (annex X)




Comments

Special derogations to continue to exempt (annex X)













Comments


Comments

 Taxable person

A person liable to value added tax is a person, including a legal person in public law or a state, rural municipality or city authority, who is engaged in business and is registered or required to register as a taxable person. The threshold for obligatory registration as a taxable person is 16,000 euros.

Taxable person with limited liability is a person, except a natural person not engaged in business or registered taxable person, who is registered or required to register as a taxable person with limited liability. If the taxable value of the goods acquired by a person by way of intra-Community acquisition, except excise goods and new means of transport, exceeds 10,000 euros as calculated from the beginning of a calendar year, arises the obligation to register as a taxable person with limited liability. There is no threshold in case of receiving a service from a foreign person engaged in business who is not registered as a taxable person in Estonia.

 
Tax object and basis of assessment
The following items are regarded as supply of goods and hence taxed under VAT (article 14 - 15 2006/112/EC)




Comments

The following items are regarded as supply of goods and hence taxed under VAT (article 18 2006/112/EC)



Comments

By derogation to article 26 paragraph 1, the following item(s) are not regarded as supply of services and hence not subject to VAT (article 26(2) 2006/112/EC)


Comments

By application of article 27 of 2006/112/EC, the following item is treated as supply of services The supply by a taxable person of a service for the purposes of his business, where the VAT on such a service, were it applied by another taxable person, would not be wholly deductible
Comments


Comments

Object of taxation:

-supply created in Estonia, except supply which is exempt from tax;

-import of goods into Estonia, except imports exempt from tax ;

-provision of services the place of supply of which is not Estonia, except supply exempt from tax;

-intra-Community acquisitions of goods, except intra-Community acquisitions of good which are exempt from tax.

Basis of assessment:

The taxable value of goods or the taxable value of the intra-Community acquisition of goods and services received is comprised of the sales price of the goods or services and anything else which is deemed to be fee that the transferor of the goods or the provider of the services has received or will receive from the purchaser of the goods, the recipient of the services or a third party for the goods or services.

In the case of the transfer of goods without charge and intra-Community acquisition of goods without charge as well as the transport of goods to another Member State which is deemed to be intra-Community supply, the taxable value shall be the value determined on the basis of the purchase price or, in the absence thereof, the cost price of the goods or other similar goods during the performance of the aforementioned acts.

The taxable value of imported good is comprised of the customs value of the goods according to the Community Customs Code and all duties payable upon import, as well as other costs related to the carriage of the goods to destination, such as commission, packing, transportation and insurance costs which have not been included in the customs value, up to the first place of destination in the territory of Estonia.

 
Deductions, Allowances, Credits, Exemptions
Exempted sectors*

None


Special Measures derogating from the normal VAT rules in accordance with Article 395 of Directive 2006/112/EC*

Special arrangements for cash-basis VAT accounting.

The right of deduction of a taxable person whose VAT solely becomes chargeable in accordance with Article 66(b) of Directive 2006/112/EC is postponed until the VAT on the goods or services supplied to him has been paid to his supplier. The threshold for using the scheme, based on the annual taxable turnover of the taxable person, may not exceed 200,000 euros.



Comments

Deductions

The amount of value added tax to be paid by a taxable person is the value added tax calculated during the taxable period on transactions or acts less the input value added tax of the same taxable period on taxable supply.

Input value added tax is:

-value added tax to be paid on goods or services which a taxable person acquires or receives from another taxable person;

-value added tax paid or to be paid by a taxable person on imported goods;

-value added tax calculated by a taxable person on the taxable value of services the place of supply of which is Estonia and which are received from a person of a foreign state engaged in business who is not registered as a taxable person in Estonia;

-value added tax calculated by a taxable person on the taxable value of goods acquired by way of a triangular transaction or other goods which are acquired and on which the taxable person is required to calculate value added tax pursuant to this Act.

Exempted goods and services are:

-postal services

-health services

-dental technicians services

-social services

-education

-services for the protection of children

-transportation of sick, injured or disabled persons

-services provided by a non-profit association to its members free of charge or for a membership fee

-services provided by independent associations of persons to their members provided that certain conditions are met

-financial services

-insurance services

-securities

-investment gold

-the organisation of gambling

-supply of certain immovables

-the leasing and letting of immovables.

 
Rate(s) Structure
Standard VAT rate Rate: 20.00 %
Comments

Reduced rate 1

(article 98 of Directive - Annex III of Directive)
Rate: 9.00 % on full or part of the following items

Article 98(2) 2006/112/EC

Foodstuffs (including beverages but excluding alcoholic beverages) for human and animal consumption; live animals, seeds, plants and ingredients normally intended for use in the preparation of foodstuffs; products normally used to supplement foodstuffs or as a substitute for foodstuffs
Supply of water
Pharmaceutical products of a kind normally used for health care, prevention of illness and as treatment for medical and veterinary purposes, including products used for contraception and sanitary protection
Medical equipment, aids and other appliances normally intended to alleviate or treat disability, for the exclusive personal use of the disabled, including the repair of such goods, and supply of children's car seats
Transport of passengers and their accompanying luggage
Supply, including on loan by libraries, of books on all physical means of support (including brochures, leaflets and similar printed matter, children's picture, drawing or colouring books, music printed or in manuscript form, maps and hydrographic or similar charts), newspapers and periodicals, other than material wholly or predominantly devoted to advertising
Admission to shows, theatres, circuses, fairs, amusement parks, concerts, museums, zoos, cinemas, exhibitions and similar cultural events and facilities
Reception of radio and television broadcasting services
Supply of services by writers, composers and performing artists, or of the royalties due to them
Provision, construction, renovation and alteration of housing, as part of a social policy
The renovation and repair of private dwellings, excluding materials which account for a significant part of the value of the service supplied
Window cleaning and cleaning in private households
Supply of goods and services of a kind normally intended for use in agricultural production but excluding capital goods such as machinery or buildings
Accommodation provided in hotels and similar establishments, including the provision of holiday accommodation and the letting of places on camping or caravan sites
Restaurant and catering services, it being possible to exclude the supply of (alcoholic and/or non-alcoholic) beverages
Admission to sporting events
Use of sporting facilities
Supply of goods and services by organisations recognised as being devoted to social wellbeing by Member States and engaged in welfare or social security work, in so far as those transactions are not exempt pursuant to Articles 132, 135 and 136
Supply of services by undertakers and cremation services, and the supply of goods related thereto
Provision of medical and dental care and thermal treatment in so far as those services are not exempt pursuant to points (b) to (e) of Article 132(1)
Supply of services provided in connection with street cleaning, refuse collection and waste treatment, other than the supply of such services by bodies referred to in Article 13
Minor repairs of bicycles
Minor repairs of shoes and leather goods
Minor repairs of clothing and household linen (including mending and alteration)
Domestic care services such as home help and care of the young, elderly, sick or disabled
Hairdressing

Article 102 2006/112/EC

Supply of natural gas
Supply of electricity
Supply of district heating

Article 103(1) 2006/112/EC

Pictures, collages and similar decorative plaques, paintings and drawings, executed entirely by hand by the artist, other than plans and drawings for architectural, engineering, industrial, commercial, topographical or similar purposes, hand-decorated manufactured articles, theatrical scenery, studio back cloths or the like of painted canvas (CN code 9701)
Original engravings, prints and lithographs, being impressions produced in the limited numbers directly in black and white or in colour of one or of several plates executed entirely by hand by the artist, irrespective of the process or of the material employed, but not including any mechanical or photomechanical process (CN code 9702 00 00)
Original sculptures and statuary, in any material, provided that they are executed entirely by the artists.
Sculpture casts the production of which is limited to eight copies and supervised by the artist or his successors in title (CN code 9703 00 00); on an exceptional basis, in cases determined by the Member States, the limit of eight copies may be exceeded for statuary casts produced before 1 January 1989
Tapestries (CN code 5805 00 00) and wall textiles (CN code 6304 00 00) made by hand from original designs provided by artists, provided that there are not more than eight copies of each
Individual pieces of ceramics executed entirely by the artist and signed by him
Enamels on copper, executed entirely by hand, limited to eight numbered copies bearing the signature of the artist or the studio, excluding articles of jewellery and goldsmith's and silversmith's wares
Photographs taken by the artist, printed by him or under his supervision, signed and numbered and limited to 30 copies, all sizes and mounts included
Postage or revenue stamps, postmarks, first-day covers, pre-stamped stationery and the like, used, or if unused not current and not intended to be current (CN code 9704 00 00)
Collections and collector's pieces of zoological, botanical, mineralogical, ethnographic or numismatic interest (CN code 9705 00 00)
Goods, other than works of art or collector's items, which are more than 100 years old (CN code 9706 00 00)
Comments


Special reduced VAT rate for specific regions (including articles 104 and 105 2006/112/EC) Rate:
Regions
Comments

Special provisions under article 110 2006/112/EC (existing provisions prior to 1991):No

Special provisions under articles 111 2006/112/EC:No

Special provisions under articles 112 2006/112/EC:No

Special provisions under articles 113 2006/112/EC:No

Special provisions under articles 114 2006/112/EC:No

Special provisions under articles 115 2006/112/EC:No

Special provisions under articles 116 2006/112/EC:No

Special provisions under articles 117 2006/112/EC:No

Special provisions under articles 118 2006/112/EC:No

Special provisions under articles 119 2006/112/EC:No

Special provisions under articles 120 2006/112/EC:No

Special provisions under articles 121 2006/112/EC:No

Special provisions under articles 122 2006/112/EC:No


Comments
 
Tax due date

The taxable period is one calendar month. Value added tax returns shall be submitted to the tax authority by the twentieth day of the month following the taxable period.

 
Tax collector

Tax and Customs Board.

 
Special features

On 01/12/2014 (approved 01/07/2014) came into effect the restriction of the right to deduct 50% (but no more than 2000€) of the input tax incurred on the acquisition, hire or lease of passenger cars and on acquisition of goods and services connected to passenger cars when the car is used for private purposes. Estimated cash based revenue increase in 2015 ca 47 mil, 2016 ca 49 mil, 2017 ca 52 mil, 2018 ca 55 mil. This measure is a part of a wider overhaul of company car taxation with the aim of reducing inefficiencies in tax expenditure and thereby increasing tax revenues.

On 01/07/2014 (approved 21/05/2014) came into effect the reverse charge VAT for precious metals. Estimated cash based revenue increase 3.5 mil €. This measure is with the aim to reduce VAT frauds involved with precious metals ca 70%. Previously the reverse charge mechanism included only gold material of a purity of 325/1000 or greater.

VAT revenues will increase also due to increase in excise duty rates on 01/01/2015, 2016, 2017 and 2018. Estimated cash based revenue increase in 2015 9 mil €, 2016 ca 13 mil, 2017 ca 18 mil, 2018 ca 22 mil.

 
Economic function







Comments
 
Environmental taxes



Comments
 
Tax revenue
ESA95 code d211

Year
Annual tax revenue (millions)
Currency
Tax revenue as % of GDP
Tax revenue as % of total tax revenue
2012 1,508.00 EUR 8.38
2011 1,363.00 EUR 8.18
2010 1,257.20 EUR 8.54
2009 1,224.00 EUR 8.65
2008 1,287.80 EUR 7.80
2007 1,423.20 EUR 8.76
2006 1,214.80 EUR 8.98
2005 969.90 EUR 8.61
2004 743.80 EUR 7.66
2003 712.10 EUR 8.18
2002 650.50 EUR 8.37
2001 568.30 EUR 8.15
2000 520.30 EUR 8.43
1999 415.80 EUR 7.73
1998 407.90 EUR 8.13
1997 430.10 EUR 9.61
1996 340.90 EUR 9.12
1995 266.10 EUR 9.17

Comments