Registration process
OSS/IOSS registration process for taxable persons
Registration to One Stop Shop (OSS) and Import One Stop Shop (IOSS) schemes can be made electronically via Estonian Tax and Customs Board e-services environment e-MTA:
Instructions on how to register as a user of OSS and IOSS special scheme can be found from following Estonian Tax and Customs Board’s webpages:
How to apply IOSS registration
IOSS registration process for intermediaries
Intermediaries can register also electronically via e-services environment e-MTA:
Instructions on how to register as an intermediary can be found here.
According to Article 431 (3) of the Estonian VAT Act, in Estonia a company can act as an intermediary of the IOSS special scheme if it is registered in the Estonian Commercial Register, is registered in Estonia for VAT liability, is solvent and has an impeccable reputation and has no tax debt. More detailed requirements for intermediaries and the registration process are available here.
Appointment of a tax representative for registration within the Union OSS
Is not required.
Refusal of registration
If the registration application is refused, the tax authority shall issue a written decision explaining the reasons for the refusal. The decision also includes instructions for appeal. More detailed information on appealing to an administrative act can be found here.
Invoicing
Invoicing
In Estonia, there is no obligation to issue an invoice upon the transfer of goods or provision of services to a natural person for personal use (Article 37 (3) of the Estonian VAT Act).
There is an obligation to issue a VAT invoice with respect to the supply of goods and services provided to non-VAT taxable legal persons (Article 37 (1) of the Estonian VAT Act).
An invoice meeting requirements of Article 37 of the Estonian VAT Act need not be issued upon intra-Community distance sales if the OSS special scheme is applied, but shall be issued if the taxable person does not use the OSS special scheme. A compliant invoice shall be issued when the OSS special scheme is applied to the supply of services.
Invoicing comments
In case an invoice is issued, the invoice should be issued in accordance with Articles 37 (7) and (8) of the Estonian VAT Act corresponding to Directive 2006/112/EC with no specific language or additional requirements.
VAT returns
Formalities in the submission of the VAT return
OSS and IOSS VAT returns are submitted electronically via Estonian Tax and Customs Board e-services environment e-MTA.
Relevant information about the VAT returns can be found from following Estonian Tax and Customs Board’s webpages:
Corrections to returns after the three-year period
General approach to corrections beyond the standard period
In Estonia, as Member State of consumption, corrections to VAT returns after the expiry of the three-year period are permitted in exceptional cases.
The corrections are handled by Estonian Tax and Customs Board.
After the Member State of identification no longer accepts corrections to earlier filings, a taxable person must contact Estonian Tax and Customs Board via email oss
emta [dot] ee (oss[at]emta[dot]ee) or emtaemta [dot] ee (emta[at]emta[dot]ee).
As Member State of identification, no corrections within the OSS system are allowed after the expiry of the three-year period, and the taxable person needs to communicate directly with the Member State of consumption.
Payment modalities and deadlines
Payment modalities in Member State of identification (MSID)
In addition to submitting the OSS/IOSS declarations, the taxable person can also make online payments for the declarations via Estonian Tax and Customs Board e-services environment e-MTA.
Payments can also be made through bank transfers to a taxable person’s Tax and Customs Board prepayment account. For the bank transfers the taxable person needs to use its personal prepayment account reference number. All the necessary information, including the bank account details, for bank transfers can be found here.
Additional payment-related procedures in the Member State of consumption (MSCON)
Applicable payment deadline
When Estonia acts as the Member State of Consumption (MSCON) under the OSS/IOSS schemes, the payment is considered timely, when the amount is received by the due date. This means that the VAT payment must arrive by the last day of the month following to the tax period.
- OSS: VAT returns are submitted quarterly, and payment must be made by the end of the month following the reporting quarter (e.g., Q1 return due by 30 April; Q2 return due by 31 July etc).
- IOSS: VAT returns are submitted monthly, and payment must be made by the end of the month following the reporting month.
The deadlines do not move forward if the scheduled due date falls on a Saturday, Sunday or a public holiday.
Late payment penalties
Late payment penalties will be imposed if payment was initiated after the due date. For overdue VAT, Estonia applies a late payment interest of 0.06% per day on the outstanding amount, starting from the day after the deadline until full payment is received.
Reimbursements
As the Member State of consumption, do you require the taxable person to submit an additional claim before making the reimbursement?
No
Reimbursement threshold as Member State of consumption
According to Article 106 (6) of the Estonian Taxation Act the reimbursement threshold is 10 EUR. If the amount of the refund does not exceed 10 euros, the refund is paid only based on a written request submitted by the entitled person. If no such request is submitted, the tax authority keeps the refundable amount to cover future tax liabilities or set-offs of the taxable person.
Release from payment of insignificant amounts of VAT
No. Estonia has not implemented a rule according to which taxable persons are released from payment of the VAT due to the fact that payable VAT amount is insignificant.
Refund of deductible VAT by non-EU established trader
If you have business operations in a non-EU country
A taxable person not established in the EU but registered under OSS/IOSS may claim input VAT incurred in the EU under Directive 86/560/EEC (13th Directive). Detailed information is available at
Calculation and refund of VAT | Estonian Tax and Customs Board
Penalties for non-compliance (as Member State of consumption)
Failure to register and late registration
Failure and late registration may result in penalties of up to EUR 3,200. Whether a penalty is applied may depend on the behavior of the taxpayer.
Reference to the above may be found in Article 154 of the Estonian Taxation Act.
In addition the failure to register or late registration under the OSS may result in the taxpayer having to register under the standard procedure.
Non-compliance with accounting obligations
The possible consequence for breaching the OSS or IOSS related accounting obligations is a penalty fee. Whether a penalty is applied depends on the behavior of the taxpayer.
Reference to the above may be found in Article 91, Articles 1531 and 154 (fines) of the Estonian Taxation Act.
Non-submission and late submission of VAT returns
If a return is submitted late, the tax authority may set a term for the submission of the return and issue a warning that a penalty payment may be imposed if the return is not filed within the notified term. The penalty payment shall not exceed EUR 1,300 after the first notification and EUR 2,000 after the second notification. Penalty payments imposed by a tax authority to enforce submission of a same return shall never exceed EUR 3,300. However, if the non-submission or late submission results in VAT being underpaid, the Tax Authority may charge a fine of up to EUR 32,000. Additionally, in case VAT returns are retroactively corrected and the payable VAT amount increases through the correction, late payment interest at the rate of 0,06% per day is calculated upon the tax amount due.
Reference to the above may be found in Articles 91 (failure to submit/amend tax returns), Articles 115-117 (late payment interest) and 1531 of the Estonian Taxation Act.
Incomplete and incorrect VAT returns
Penalty and/or late payment interest (depending on the nature of incorrect information) may apply in relation to incorrect VAT returns. Whether penalties apply depends on the behavior of the taxpayer. If the return is not amended within the timeframe notified by the tax authority, the return shall be deemed not to have been submitted.
In cases where incomplete or incorrect VAT return results in underpaid VAT, the Tax Authority may apply fine up to 32,000 EUR. Additionally, in case VAT returns are retroactively corrected and the payable VAT amount increases through the correction, late payment interest at the rate of 0,06% per day is calculated upon the tax amount due.
Reference to the above may be found in Article 91 (failure to submit/amend VAT returns), Articles 115-117 (late payment interest) and Article 1531 (fines) of the Estonian Taxation Act.
Criminal action follows in cases where intentionally incomplete or incorrect VAT returns result in underpaid VAT or incorrect refund claim exceeding the amount of 40,000 EUR (i.e. exceeding major damage). Act which exceeds major damage is punishable by pecuniary punishment or up to five years’ imprisonment; act which exceeds particularly great damage (over 400,000 EUR) is punishable by one to seven years’ imprisonment. Reference to the above may be found in Article 3891 of the Estonian Penal Code.
Non-payment and late payment of VAT
For late payment of VAT, 0.06% interest on the amount due per day is applicable.
Reference to the above may be found in Articles 115-117 of the Estonian Taxation Act.
Time of supply – chargeability
Deferment and Cash Accounting Scheme:
In Estonia, the basic time of supply for goods and services is the earliest of the following events: the delivery of goods; the performance of services; or receipt of full or partial payment.
However, businesses with a turnover specified in subsection 191 (3) of the Estonian VAT Act, the place of supply of which is Estonia, not exceeding EUR 200,000 per year may opt for VAT to become chargeable when payment is received from the customer (cash accounting scheme). Reference to the above may be found in Article 44 of the Estonian VAT Act.
Continuous supplies:
In Estonia, continuous supplies of services are generally regarded as being completed at the earlier of receipt of payment or the taxable period overlapping with the end of the period of time for which an invoice is submitted or during which payment for goods or services received is to be made as agreed, but not later than after twelve calendar months from when the service started.
Reference to the above may be found in Article 11 (4) of the Estonian VAT Act. VAT on continuous supplies of telecommunications, broadcasting and electronic services provided to non-VAT taxable persons becomes generally chargeable when the service is provided or upon receipt of the full or partial payment for the service. Reference to the above may be found in Article 11 (1) of the Estonian VAT Act.
Reminder Messages
As the Member State of Identification, reminders are sent electronically to the email address provided by the taxable person to the Estonian Tax and Customs Board (ETCB).
As the Member State of Consumption, reminders are sent electronically to the taxable person via the email address provided in the OSS/IOSS registration application.
The messages are sent from email address teatedemta [dot] ee (teated[at]emta[dot]ee). These e-mails never contain payment links or attachments. They may only include a secure link to our e-services environment e-MTA.
ETCB never requests sensitive data or payment confirmation via e-mail. Any message containing direct payment links or QR codes is fraudulent.
The official bank accounts for OSS/IOSS payments are:
SEB Pank – IBAN EE351010052031000004, SWIFT/BIC EEUHEE2X
Swedbank – IBAN EE522200221013264447, SWIFT/BIC HABAEE2X
Luminor Bank – IBAN EE401700017002872300, SWIFT/BIC RIKOEE22
LHV Pank – IBAN EE957700771001523585, SWIFT/BIC LHVBEE22
Coop Pank – IBAN EE774204278607566704, SWIFT/BIC EKRDEE22
More detailed information on how to make a payment to ETCB can be found here.
If in doubt about the authenticity of a reminder message, please contact the Estonian Tax and Customs Board directly:
Phone: +372 880 0812
E-mail: ossemta [dot] ee (oss[at]emta[dot]ee)
Exclusion and Appeals
Appeal procedures
If the taxable person finds that an administrative act or action of the Estonian Tax and Customs Board has violated their rights or restricted their freedoms, the taxable person may file a challenge against the administrative act or action or file a complaint to the court.
A challenge submitted against an administrative act or action is reviewed by the Tax and Customs Board. Compared to court proceedings, the challenge procedure is a simpler, less expensive, and faster way for a taxable person to protect their rights.
Submitting a challenge does not remove the right to apply to the court. An application to the court may be made at any stage of the challenge procedure or within 30 days of receipt of the decision on the challenge.
Instructions for appeal as well as deadline for submitting the claim are always enclosed to the administrative act.
More detailed information on appealing to an administrative act can also be found here.
Steps after exclusion/de-registration
If a taxable person ceases to use the OSS/IOSS in Estonia as MSCON, but still making supplies, it must register as a VAT payer in Estonia.
Registration application for non-resident taxpayer (Form R2) must be completed and submitted, together with the required supporting documents, to the email address emtaemta [dot] ee (emta[at]emta[dot]ee). More detailed information is available at -
Registration of non-residents | Estonian Tax and Customs Board
Other rules
Use and Enjoyment
In Estonia no use and enjoyment rules have been adopted by virtue of Article 59a of VAT Directive with respect to supplies of goods and services reported in the OSS/IOSS scheme.
Bad Debt relief
In Estonia, bad debt relief is not available with respect to supplies of goods and services reported in the OSS/IOSS schemes.
Additional obligations deemed necessary for collecting VAT and preventing evasion (anti- avoidance measures)
Estonia has not implemented any rules or anti-avoidance measures by virtue of Article 273 of the VAT Directive that may directly impact supplies of goods and services reported in the OSS /IOSS schemes.