Starting from January 1, 2025, new regulations on the VAT registration threshold will come into effect in Estonia. These changes will primarily impact companies operating in real estate, financial services, and insurance. Under the new regulation, the €40,000 VAT registration threshold will include the following:
- Taxable turnover of goods and services, including zero-rated turnover, excluding the sale of fixed assets.
- Turnover from real estate transactions, excluding the sale of fixed assets and occasional transactions.
- Turnover from insurance and financial services, excluding occasional services.
The threshold applies only to turnover generated in Estonia. However, it should be noted that if a person’s total turnover is VAT-exempt or subject to a zero VAT rate and does not include intra-community turnover, there is no obligation to register, regardless of the turnover amount.
Further information about these changes can be found on the Tax and Customs Board’s website. Translation from Estonian original.
https://tuokko.ee/en/vat-threshold-calculation-starting-from-1-january-2025/