Walless Tax Cookies: New VAT registration rules in Estonia – have you received the memo?
2025 01 30
Some Estonian companies that have not needed VAT registration until now may need to register in 2025. Since 1 January, the €40 000 registration threshold includes, among other items, supply of real estate transactions (except incidental transactions and sales of fixed assets) and supply of financial and insurance services (except incidental transactions).
Only transactions where Estonia is the place of supply are included in the calculation. If all supplies are VAT-exempt or 0%-rated, registration is not required, regardless of the total amount. However, if the threshold is reached and there is any VAT-taxable supply, registration becomes mandatory. For example, an investment company that previously only had VAT-exempt transactions may now need to register if it issues even a small consultancy fee invoice.
The tax authority has notified 24 000 companies that may be impacted by these changes. Have you received the memo?