Estonia: Domestic Corporate Taxation
Sales Taxes and VAT
The standard rate of VAT is 20% (increased in 2009 from 18%). Certain supplies attract a reduced rate of 9%, including books, some periodicals, and certain medicines and medical equipment supplies. The provision of accommodation also qualifies for the reduced rate. International services, international transport services and exports are all zero-rated.
Exemptions from VAT include insurance, postal services, financial services, health and education.
The threshold for VAT registration is EUR16,000 per calendar year and individuals or companies must register for VAT. Where revenue is below the threshold, voluntary registration is an option.
VAT returns must be submitted monthly and there are penalties for late submission of the returns at an interest rate of 0.06% per day.