Estonia’s parliament (Riigikogu) has passed amendments to the value added tax (VAT) law that will be effective in 2014 or in 2015.
Among the most significant amendments effective as from 1 March 2014 include the following:
- The amendments clearly stipulate the option of voluntary registration as a taxable person in the case of intra-Community acquisitions and exports of goods which are exempt from tax.
- The deadline for a tax authority to make a decision to register a person as a taxable person has been extended from the current three days to five working days.
- Taxpayers will be entitled to deduct VAT paid on the services received prior to registering as a taxable person as input VAT upon reselling the services. The amendment results from the European Court of Justice’s judgment 385/09.
- Accounting for VAT may not be amended in cases where a credit invoice is submitted due to full or partial non-payment for goods or services.
The above changes are effective from March 2014 but there are also some amendments that enter into force on 1 January 2015. The VAT amendments entering into force on 1 January 2015 are mostly related to electronically provided services and result directly from amendments to Council Directive 2006/112/EC and Implementing Regulation (EU) 282/2011 that are effective as from 1 January 2015.
