Registration as a VAT payer

The obligation to register as a person liable to VAT arises if the supply of the transactions specified in subsection 3 of § 19¹ of the Value Added Tax Act, the place of supply of which is Estonia, exceeds 40,000 euros from the beginning of the year. An economic operator whose intra-Community acquisition of goods exceeds 10,000 euros as calculated from the beginning of a year is registered as liable to value added tax with limited liability. A parent undertaking and its subsidiaries can be registered as a value added tax group. For both registration and deletion from the register, an application must be submitted to the Estonian Tax and Customs Board.

 Useful links

Value added tax (VAT) identification number search EU VIES VAT number validation
Applications for registration and deletion as a person liable to VAT Value Added Tax Act (VAT Act) Changes in the VAT Act

You can register as a person liable to VAT or delete yourself from the register of taxable persons in the
e-services environment e-MTA.

Register as a VAT payer

Handbook “Registration as a VAT payer”

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    Cash accounting for VAT

    Legal basis

    § 44 of VAT Act

    Conditions for the application of the special cash accounting arrangement

    According to the amendments to the VAT Act which entered into force on 1 January 2011, all persons liable to VAT whose taxable supply did not exceed 200,000 euros as of the beginning of the previous calendar year or the beginning of the current calendar year may implement the special arrangement for cash accounting of VAT (hereinafter special arrangement). A taxable person must keep the calculation of the threshold on a cash basis and the taxable supply does not take into account the transfer of fixed assets and the incidental transfer of immovable as goods.

    According to the procedure in force until 31.12.2010, the cash accounting of VAT could only be applied by a sole proprietor without taking into account the amount of taxable supply per year.

    Determination of the time of registration for VAT purposes

    A person that wishes to implement the special arrangement must keep records of the registration obligation threshold (40,000 euros since 1 January 2018) on the cash basis. VAT must be added to the transaction with which the threshold is exceeded in the extent of the entire transaction.

    Example. Keeping records of the registration obligation threshold
    Goods were dispatched 20.01 In the amount of 30,000 euros Payment 17.02 In the amount of 30,000 euros
    Service was provided 10.02 In the amount of 5,000 euros Payment 18.03 In the amount of 5,000 euros
    Goods were dispatched 01.04 In the amount of 5,100 euros Payment 01.05 In the amount of 5,100 euros
    Total 40,100 euros Total 40,100 euros

    Therefore, in the case of cash accounting, the supply exceeded 40,000 euros on 1 May (in the application of the general rules on 1 April). The taxable person must add VAT to all invoices of the same day (1 May).

    Last updated on 06.08.2025

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