In Estonia, certain tax requirements must be completed through local agents, especially when it comes to non-EU companies. These must appoint a fiscal representative to handle VAT-related procedures.
Below, we invite you to find out the main services associated with appointing a fiscal representative in Estonia. You can rely on our local advisors for support if you want to open a company in Estonia.
Table of Contents
Who is required to appoint a fiscal representative in Estonia?
Unlike other EU countries where having a local agent is not required, Estonia has a regulation in this sense. Specifically, businesses outside of the EU must designate a fiscal representative in order to register for VAT in Estonia. The fiscal agent is in charge of making sure the non-resident corporation will be VAT compliant.
| Quick Facts | |
|---|---|
| Requirement to appoint an Estonian fiscal representative (YES/NO) | Yes, for non-EU companies operating in Estonia. |
|
Types of businesses that can appoint a fiscal agent in Estonia |
Optionally, local and EU companies can also appoint such an agent. |
|
Possibility to appoint a fiscal agent by sole traders (YES/NO) |
Yes, such services are also available for sole traders in Estonia. |
| Who can act as a fiscal agent in Estonia? |
– accountants, – accounting firms, – other companies. |
| Registration requirement for a tax agent (YES/NO) |
Yes, the agent must be registered with the Estonian Tax and Customs Board. |
| Availability of VAT registration services through a fiscal agent (YES/NO) |
Yes. |
| VAT reporting services availability (YES/NO) |
Yes, a fiscal representative can also offer VAT reporting services. |
| Availability of VAT filing services (YES/NO) |
Yes, such solutions also enter the portfolio of a fiscal agent. |
| Record-keeping services |
Yes, you can delegate this task to an Estonian fiscal representative. |
| VAT control support (YES/NO) | Yes, especially for foreign companies. |
| VAT claims and refund services (YES/NO) |
Yes, the agent can represent businesses when filing for VAT refunds. |
| Support in intra-community VAT matters (YES/NO) |
Yes. |
| Other services (if any) |
Such an agent can also act as a contact between a company and the Estonian tax authority. |
| Activities for which fiscal representation is recommended |
– import-export, – EORI registration. |
| Availability of fiscal representative services in Estonia (YES/NO) | Yes, you can rely on our specialists for such a service. |
This is applicable to any business operating outside of the EU that completes transactions/commercial activities with Estonia and is subject to taxation here. Among the operations are the following:
- – importing goods into Estonia from non-EU countries;
- – exporting products from Estonia to non-EU states;
- – purchasing of goods supplied in Estonia by EU members;
- – business-to-business (B2B) exports of goods to EU members;
- – business-to-customer (B2C) exports of goods and services, including through marketplaces, to individuals in Estonia.
You can obtain more information about the VAT legislation from our accountants in Estonia.
Who can be a fiscal representative in Estonia?
Foreign companies can appoint persons who are licensed by the Estonian Tax and Customs Board (ETCB). Such a person can also be a licensed accountant. A non-resident company may designate the tax agent to act on their behalf when fulfilling obligations arising in Estonia under the Taxation Act.
The company formation procedure in Estonia can be completed by our local agents, while tax representation can be provided by one of our accountants.
Services provided by an Estonian tax agent
The following services/activities can be completed by an Estonian fiscal representative:
- act as a contact officer with the tax authorities;
- registration in Estonia as a VAT-liable entity;
- signing documents on behalf of the foreign company in relation to using the electronic system of the ETCB;
- filing intra-community reports and monthly VAT returns;
- handling customs operations, such as EORI registration.
Not complying with the Estonian tax authorities’ requirements will lead to penalties for enterprises that do not designate a tax agent and also to the impossibility to claim VAT refunds.
Should you need such services, please get in touch with our company registration agents in Estonia for advice.
VAT registration requirements
Local and foreign businesses operating in Estonia and that are subject to taxation must register for VAT. While non-EU enterprises must register for Estonia VAT regardless of their sales, local businesses have a registration threshold requirement of EUR 40,000.
E-commerce companies engaged in cross-border distance-selling operations in the EU must register for VAT after reaching a EUR 10,000 threshold. A business must register for VAT if its yearly sales to Estonian consumers surpass this threshold.
A fiscal representative in Estonia can help both types of entities to register and comply with the VAT requirements after registration.
Filing VAT returns in Estonia
Foreign companies must consider the following VAT reporting requirements in Estonia:
- – VAT returns must be filed by the 20th of the following month for the current month;
- – companies with activities in the EU must file Intrastat declarations for annual revenues exceeding EUR 400,000 for imports, and EUR 270,000 for exports;
- – Intrastat declarations must be filed by the 10th of the following month for the current reporting period.
For more information on fiscal representation in Estonia, please contact us. Our agents are also at your service if you want to apply for a crypto license in Estonia.