Taxation of goods

In certain cases, intra-Community acquisitions of goods are exempt from tax, although they are subject to all the rules applicable to intra-Community supply of goods.

The intra-Community acquisition of goods exempt from tax in Estonia does not generate supply and it is declared only in informational lines 6 and 6.1 of the VAT return. When the import of goods is exempt from tax, the intra-Community acquisition of such goods is accordingly exempt from tax. VAT is not payable on the intra-Community acquisition of goods even if a foreign taxable person had the right to later recover the VAT paid.

Value added tax is not imposed on the following (§ 18 of the VAT Act):

1. intra-Community acquisition of goods the supply of which is exempt from tax (§ 16);
2. intra-Community acquisition of goods the import of which is exempt from tax (§ 17);
3. intra-Community acquisition of goods by a foreign taxable person if the conditions for the refund of value added tax provided for in clauses 1–3 of subsection 1 of § 35 of this Act are met;
4. intra-Community acquisition of goods by a taxable person of another Member State in the case of a triangular transaction;
5. intra-Community acquisition of goods, if the goods are subject to immediate tax warehousing (§ 44¹).