What accounting duties do you need to remember when running a company in Estonia?

Every registered company in Estonia is required to fulfill a number of accounting obligations by a certain date. Despite the fact that the Estonian tax system is one of the most favorable in all of Europe, it requires reliable record-keeping, timeliness and correctness of submitted declarations. 

VAT declaration of a company in Estonia

It is the obligation of a company in Estonia that exceeds the limit of sales revenue equivalent to 40,000 euros during the year to register for VAT settlements.

A company in Estonia also has the option to voluntarily register for VAT when it begins operations. In both cases, after applying for VAT registration in Estonia, a decision is received within a maximum of 3 working days, most often an individual VAT number is assigned the same day.

>>YOU CAN READ MORE ABOUT VAT REGISTRATION OF A COMPANY IN ESTONIA AT THIS LINK <<.

A company in Estonia that has been registered for VAT is required to settle VAT on a monthly basis, keep records of purchases and sales. Consequently, it is obliged to submit a value-added tax return by the 20th of the month for the previous month.

VAT OSS declaration of a company in Estonia

Companies registered in Estonia that make mail order sales to other countries in the European Union, the value of which exceeds EUR 10,000 (per country) are required to join the VAT OSS system. By registering for this system, the taxpayer is able to file a single quarterly return that captures all sales to individuals, facilitating the transfer of VAT to individual countries, which is performed by the Estonian tax authority.

TSD declaration of a company in Estonia

It is the accounting obligation of a company in Estonia that makes profit distributions in the form of dividends, as well as the payment of a board member’s salary, to file a TSD declaration on a monthly basis, by the 10th of the month following the month in which the payment was made.

>> YOU CAN READ ABOUT WHAT VD AND TSD DECLARATIONS ARE HERE <<

Intrastat declaration of an Estonian company

In the case of trade in goods between a company registered in Estonia and other European Union countries, the company may be required to report data for statistical purposes.

It is mandatory to include all export or import transactions of goods in the Intrastat declaration. The statistical statement must be compulsorily submitted by the 14th day of the month following the month declared.

Annual report for a company in Estonia

It is the accounting obligation of a company in Estonia, after the end of the fiscal year, to prepare and then submit an annual report to the Estonian Registry Court.

>> READ MORE ABOUT THE ANNUAL REPORT FOR A COMPANY IN ESTONIA HERE <<

This is an annual report on the company’s activities, which provides a comprehensive picture of the entity’s financial performance. The annual report must be filed within 6 months of the end of the fiscal year. Submission of the report is mandatory, even if there is no operating activity. In special cases, the annual report must also be accompanied by a summary of the auditor’s examination.