EST GVT e-Commerce VAT Payments

On Sep. 13, EST GVT said VAT Act changes passed the first reading.

  • EST GVT informed that the bill improving e-commerce tax collection regarding foreign e-shops, via amendments to the VAT Act, passed the first reading in the EST PRL.
  • Follows EU Mar. 2020 issued dir 2020/284 re payment service providers, see #50854.
  • Purpose
  • Changes to EU VAT directive were adopted into Estonian law, the purpose of which is to detect tax fraud in e-commerce by establishing an obligation to provide information.
  • EU payment service providers transmit cross-border data to tax authorities, quarterly.
  • Authorities transmit data to EU central electronic payment information system CESOP.
  • Authorities can receive information on the turnover of e-shops selling goods to Estonia.
  • E-traders whose cross-border turnover in the EU is less than 10,000 EUR per year don't have to pay VAT in the consumer's country of residence, but in their own country.
  • Effectiveness
  • Payments are reported quarterly; first data submission will be by the end of Apr. 2024.

Regulators EST GVT
Entity Types Auditor; Corp; MSB
Reference PR, 9/13/2023; Dir 2020/284
Functions Accounting; Compliance; Financial; Fraud; Legal; Operations; Privacy; Tax; Technology
Countries Estonia; Cross-Border
Products Corporate; Payments
Regions EMEA
Rule Type Final
Rule Date 9/13/2023
Effective Date 4/30/2024
Rule Id 184900
Linked to Rule :50854
Reg. Last Update 9/13/2023
Report Section EU

Last substantive update on 09/17/2023