Forest transactions

All natural and legal persons who have sold and purchased cutting right and/or timber are required to submit a notice concerning the cutting right or timber sold or purchased (forest transaction notice) to the Tax and Customs Board once a year.
  • The notice of cutting right or timber sale and purchase transactions must be submitted once a year.
  • The notice of transactions of the previous year must be submitted by 10 January.
  • No notice is required if less than 20 solid cubic metres of timber is sold or purchased per year.
  • Even if less than 20 cubic metres of timber has been sold per year, income from the sale of timber must still be declared in the income tax return of a natural person (in table 6.2).

 Useful links

Forest Act

Regulation No 84 of the Minister of the Environment of 21 December 2006 (in Estonian)

The requirements for the transportation of timber, the deed of delivery and receipt of timber, the conveyance document and the form of the notice to be submitted to the Estonian Tax and Customs Board concerning the cutting right or timber sold or purchased.

Submission of forest transactions notice

The notice of cutting right or timber sale and purchase transactions can be submitted to the Estonian Tax and Customs Board in the e-services environment e-MTA or on paper form.

There are two options for submitting the notice in the e-MTA:

  • filling in an electronic form, which is the easiest way to declare individual purchases or sales;
     

    Submit notice

  • uploading a file in XML format, which we recommend to companies that have the option to create XML files in their accounting program.

If you want to submit the notice on paper, you can ask for the form from our service bureaus or print it out. If you wish to complete the notice on your computer, please send it digitally signed to [email protected].

Questions and answers

  1. We have purchased timber from Swedish legal entities. The problem lies in the transmission of the data on these transactions electronically through the e-MTA using an XML file. When uploading the file in the e-MTA, we receive an error message that the Swedish company registration code is not correct and the upload will be cancelled. What can be the problem and how to solve it?
    Purchases of timber from abroad (from both EU Member States and non-EU countries) do not have to be declared in the notice of cutting right or timber sales and purchase transaction. Timber sales from Estonia to foreign countries must be declared. In order to successfully upload the XML file to the e-MTA, it is necessary to remove purchases from abroad.
  2. Should the notice of cutting right or timber sales and purchase transactions also include firewood sold to private individuals or to a company?
    According to the Forest Act, timber is a felled tree and stem, the part of stem acquired by means of cross-cutting the stem, and slash. As firewood is chopped, i.e. processed, it does not have to be declared in the notice, as it does not fall within the definition of ‘timber’ (subsection 2 of § 28 of the Forest Act).
  3. How does the notice have to be submitted when the transfer is made by a private individual who is not obliged to submit invoices?
    In the absence of an invoice, the number of the written contract or deed must be indicated in the document field. Upon transfer of the cutting right or timber and transfer of timber for processing, storage or transportation, the person who transfers the right or delivers timber must prove the existence of the cutting right or the legality of the possession of timber to the person who acquires the right or receives timber, and the latter must verify it (subsection 1 of § 37 of the Forest Act). Upon transfer of timber and giving of timber for processing or storage, the transferor or the person who gives timber for processing or storage and the acquirer of timber or the person who receives timber for processing or storage conclude a timber transfer contract in writing or in a form reproducible in writing or prepare a written instrument on the conclusion of an oral agreement (subsection 8 of § 37 of the Forest Act).
  4. Should the notice of cutting right or timber sale and purchase transactions also include purchases from third countries?
    The notice of cutting right or timber sale and purchase transactions does not need to include purchases from third countries or from countries of the European Union.
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Last updated: 20.01.2022

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