VAT number of an Estonian company

An Estonian company must register for VAT if:

1. Annual Revenue Threshold: Its taxable turnover exceeds 40 000 EUR in a 12-month period.

2. Cross-Border Transactions: It engages in cross-border trade within the EU.

3. Voluntary Registration: A company can choose to register for VAT even if its turnover is below the threshold, which can be beneficial for reclaiming VAT on business expenses.

If a company’s turnover remains below the threshold and it does not engage in cross-border transactions, it is not obligated to register for VAT. However, registering for VAT can provide advantages in certain business situations.