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VAT number in Estonia – should you get it?25. March 2025

Value Added Tax (VAT) is a tax that is commonly used in the EU and in many other countries in the world. Various aspects of the tax are discussed in our FAQ section and in a dedicated memo we have compiled on the subject.

In certain cases, it is possible for your Estonian company to register for VAT in Estonia and get an Estonian VAT number. For our clients, this process is handled by your accountant at E-residency Hub.

It is important to remember that:

it is possible and entirely normal to operate a company in Estonia without registering for VAT and without getting a VAT number. In fact, about 2/3 of companies registered in Estonia do not have a VAT number

VAT registration in Estonia should only be done if certain criteria are met.

Before you decide to apply for an Estonian VAT number, you should think about whether or not your company really needs the VAT number. If you are sure that it is needed, make sure that your company corresponds to at least some of the following criteria:

  1. You sell your goods or services to private individuals in the EU
  2. You have a physical office in Estonia
  3. You have employees, who receive regular salary from your company and who live in Estonia
  4. You have suppliers in Estonia – companies from which you regularly buy goods or services
  5. You have clients in Estonia who regularly buy your goods or services
  6. You sell or buy physical goods which are warehoused in Estonia and are then shipped to clients from Estonia
  7. You already pay or intend to pay other taxes in Estonia (e.g. corporate income tax, taxes of fringe benefits, Board Member Fees, etc)

In case your company does not meet any of the criteria above, we strongly advise you to NOT apply for a VAT number in Estonia. If you still do that and apply for a VAT number, then even if the VAT number is given to your company, the Estonian Tax and Customs Board has the right to take the number away from your company in case they establish that the requested criteria are not met.

In case most or all your business is done in a country outside Estonia, you may also consider applying for a VAT number in that country. In such cases, please remember that E-Residency Hub does not offer VAT reporting services in countries outside Estonia.

For registering your Estonian company for VAT in other countries around the world, we recommend that you get in touch with https://www.taxually.com/