Estonia VAT Guide for 2026: Rates, Registration & Compliance
Estonia's standard VAT rose to 24% on 1 July 2025 (a permanent increase). This guide covers the registration threshold, OSS, and monthly filing.
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Key Takeaways
Estonia applies a standard VAT (KM) rate of 24% to most goods and services, including SaaS and digital products, with reduced rates for categories like accommodation, books, and medicine. A non-established business must register as soon as it makes taxable supplies, with no threshold; for EU-wide B2C distance sales, VAT is due once sales exceed the EU-wide EUR 10,000 threshold. Most financial and insurance services, healthcare, social services, and education are exempt; exports and intra-EU B2B supplies are zero-rated.
Taxability Snapshot
SaaS
Taxable
Digital Goods
Taxable
Sales Tax Rates
Estonia applies a standard VAT (KM) rate of 24% to most goods and services, including SaaS and digital products sold to consumers. Reduced and special rates apply to specific categories:
Rate | Applies to |
|---|---|
24% (standard) | most goods and services, SaaS, and digital services |
13% (reduced) | hotel and other accommodation |
9% (reduced) | books, certain medicines and medical devices, press publications |
0% (zero) | intra-EU supplies and exports |
Electronically supplied services are taxed where the customer is located, so a foreign SaaS seller charges Estonian VAT on B2C sales and reports it through the EU One Stop Shop (OSS).
Estonia VAT Calculator
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Estonia · KMRates as of September 2026. Source: EMTA: VAT rates (opens in a new tab).
Estonia · Standard rate
24%
KM rate
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This is an estimate. Whether a sale is taxable, and at which rate, depends on what you sell, who you sell to and where it's supplied. If you intend to rely on these rates, please use the Kintsugi platform.
Registration & nexus threshold
Estonia uses VAT registration rules rather than US-style economic nexus. A non-established business must register as soon as it makes taxable supplies in Estonia, with no threshold [2]. For cross-border B2C sales within the EU, VAT is due in the customer's country once total EU distance sales exceed the EU-wide EUR 10,000 threshold, reportable through the One Stop Shop [2]. Registration steps are in the How to Register section.
Filing frequency & deadlines
Estonian VAT returns are filed monthly. The return and payment are both due by the 20th of the following month, alongside the intra-Community supply report.
Exemptions
Exempt supplies include most financial and insurance services, healthcare and social services, education, and the letting of immovable property (with an option to tax). Exports and intra-EU B2B supplies are zero-rated.
Penalties
Late payment accrues interest of 0.06% per day, roughly 21.9% a year, from the day after the deadline. Non-filing and other non-compliance can draw a penalty payment (sunniraha).
Sources
[1] Estonian Tax and Customs Board — VAT rates (24% standard from 1 July 2025)
[2] European Commission — One Stop Shop (EU-wide EUR 10,000 threshold)
Verified July 2026 against the Estonian Tax and Customs Board and European Commission guidance.
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