What is VAT?

Written by Dmitri Schmidt
Updated 2 years ago

VAT (Value Added Tax) is a value-added tax or turnover tax.

This tax is called käibemaks in Estonian. 

If your company's income (turnover) in a calendar year exceeds 40,000 euros, you are obliged to get a VAT number and add VAT to your sales. But you should get a VAT number before that. 

VAT can be 20%, 9% or 0%. The tax rate depends on the type of service you sell, the type of goods or how the goods move.

NB! Only if you have a VAT number, you have the right to refund the Estonian VAT from the Estonian Tax Board.

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