The general VAT rate is 20% of the taxable value of a good or service.
A tax rate of 9% applies to some goods and services – for instance books (including textbooks and workbooks), periodicals, accommodation services, and medicines, health and hygiene products specified by the Ministry of Social Affairs, and medical equipment for use of disabled persons.
A 0% VAT rate is in effect for a number of goods, including exported goods, and consultation services provided to VAT payers in another EU member state as well as for watercraft and aircraft used in international traffic. A 0% VAT rate also applies to services provided outside Estonia, a number of services related to water and air transport and carriage of goods. The supply of a number of goods and services with a social orientation is tax-free, such as postal services, insurance, health care and social services. For a full list of the VAT exemptions, consult the VAT Act.
The taxation period for VAT is a calendar month. You are required to file a value-added tax return and pay VAT to the Tax and Customs Board by the 20th day of the month subsequent to the taxation period. You may file the value-added tax return by using the electronic Tax and Customs Board or contacting the Tax and Customs Board’s regional tax centre. If you have been a VAT payer for at least 12 months, you will be required to submit the VAT return electronically.