VAT
Also called: value added tax, käibemaks, KMD
Value added tax: a tax on sales that VAT-registered businesses charge their customers and pay to the Estonian Tax and Customs Board.
Value added tax (VAT) is a tax on the sale of goods and services. A VAT-registered business adds VAT to its invoices where it applies, deducts the VAT it paid on business purchases, and pays the difference to the Estonian Tax and Customs Board.
An Estonian company must register for VAT once its supplies taxable in Estonia since the start of the calendar year exceed €40,000 (source: emta.ee, checked 3 Oct 2026). It must apply within 3 working days (source: emta.ee, checked 3 Oct 2026) of passing that amount. A company can also register voluntarily below the threshold. The standard rate is 24% (source: emta.ee, checked 3 Oct 2026).
A VAT-registered company files a VAT return (KMD) every month, due on the 20th (source: emta.ee, checked 3 Oct 2026) of the following month, including months without sales. Sales to businesses in other EU countries often follow different rules, such as the reverse charge.
Read When does an Estonian company need to register for VAT? and include VAT in your plans with the cost calculator.
General information only, not tax or legal advice. This site is not affiliated with, endorsed by or operated by the Republic of Estonia or the e-Residency programme.
Guides that use this term
Related terms: OÜ, Service provider. All terms.
Sources
- Value added tax, Estonian Tax and Customs Board (EMTA). Checked 3 Oct 2026.
- Tax liabilities of companies established by e-residents, Estonian Tax and Customs Board (EMTA). Checked 3 Oct 2026.
- Value Added Tax Act, Riigi Teataja (Estonian State Gazette). Checked 27 Sept 2026.
- emta.ee, for: Annual taxable turnover above which VAT registration is required; Time to apply for VAT registration after passing the threshold.
- emta.ee, for: Day of the following month by which the VAT return (KMD) is due.
Figures last checked: 3 October 2026. Each figure links to its source; see all sources and dates.
Last reviewed .