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You do not need an Estonian VAT number to start your business, but you must register as a VAT payer in Estonia if any of the following apply:

1. Your taxable turnover in Estonia exceeds €40 000 in a calendar year.
   This includes most goods and services sold in Estonia, including exports taxed at 0%.
2. You start selling physical goods in Estonia.
3. Your company purchases services from outside Estonia (such as software, marketing, consulting, etc.), and your business activity creates taxable turnover in Estonia (Xolo does not support limited VAT registration in Estonia).
4. You purchase goods from other EU countries exceeding €10 000 per year.
   If your company is established and operating in Estonia, and cross-border goods are received in Estonia, you must register for VAT in Estonia for intra-Community acquisitions.
5. You provide digital services (e.g., software, online content) to consumers (B2C) in the EU who do not have a valid VAT number, and your EU-wide B2C turnover exceeds €10 000 per year.
   In this case, you must register for the OSS (One Stop Shop) scheme.

The Estonian tax authority may determine that the necessity to register for the OSS scheme arises in the country where the company’s effective management is located (i.e., where the actual business activities are carried out), rather than in Estonia.

Note: It is usually assumed that the OSS registration should be made in the EU country where your business is effectively managed, meaning:

• Where you (the operator) are personally located and running the business
• Where your company has a fixed establishment (e.g., office, employees)
• Where the services are actually provided from

If your company does not have taxable activity in Estonia (e.g., goods are delivered elsewhere and the company is run from another country), then you may need to register for VAT in that country instead, based on the actual place of supply and management.

Please check the VAT rules in the country where your real business activity takes place, as the VAT obligation thresholds might vary in different EU countries.

What is included in the €40 000 threshold?
As of January 1st, 2025, the VAT registration threshold of €40 000 will include:

• Taxable supply of goods and services, including those taxed at a zero rate, except for the transfer of fixed assets;
• Supply of immovable property, except for the transfer of fixed assets and occasional transactions;
• Supply of insurance services and financial services, except for occasional services.

Only turnover generated in Estonia is included in the threshold.

If a person’s total turnover is either VAT-exempt or taxed at a 0% VAT rate and does not include intra-Community supplies, there will be no obligation to register, regardless of the amount of turnover.

If you need to register a VAT number for your company, please contact us support@xolo.io, so we can assess your company´s need for the VAT number in Estonia.

The VAT number registration is available as an add-on service for €69 + VAT.