Claim your FREE copy
Doing Business Guide in the Baltics.
Tax Up-date in Estonia starting from 01.01.2017
20 January 2017
Value Added Tax
VAT is 20%.
VAT is 9% in case of:
- books and workbooks used as learning materials;
- medicinal products, contraceptive preparations, sanitary and toiletry products and medical devices intended for the personal use of disabled persons for the purposes of the Medical Devices Act;
- periodic publications, excluding publications mainly containing advertisements or personal announcements, or publications the content of which is mainly erotic or pornographic;
- accommodation services or accommodation services with breakfast, excluding any goods or services accompanying such services.
VAT is 0 % in case of e.g.:
- exported goods, excluding cases where the supply of such goods is exempt from tax;
- goods where their transfer and transport to another Member State or transport to another Member State without transfer is deemed to be intra-Community supply of goods.
- goods transferred and transported to another Member State to a diplomatic representative, a consular agent (except an honorary consul), a representative or representation of a special mission or an international organisation recognised by the Ministry of Foreign Affairs, headquarters of an international organisation, a diplomatic representation, a consular post, a special mission or a Union institution;
- Etc.
Threshold to register as VAT payer in Estonia is:
- In general 16,000 euros. Starting from 2018 it will be 40,000 euros;
- In case of distance sales 35,000 euros.
Social tax
Social tax is 33% from taxable amount.
Minimum amount of social tax payable by the employer is 141,90 euros.
In case of sole proprietor the minimum social tax payable is 425,70 euros per quarter.
Income tax
Income tax is 20%.
Income tax from the legal person payments (fringe benefits, gifts, donations, dividends, costs not related to business) are 20/80 i.e. 20% from the gross amount.
Tax free minimum is 180 euros per month and per year 2160 euros.
Should you have any questions, please do not hesitate to contact our tax and legal specialists via info@gencs.eu
T: +371 67 240 090
F: +371 67 240 091