Required Accounting Documents

for Estonian Company

Overview

Estonian companies must comply with specific accounting documentation requirements based on their business activity and tax obligations. While most companies need to file tax returns monthly, some may handle their accounting annually through the annual report.

Accounting documentation requirements depend on:

  • Whether monthly tax returns are necessary

  • Your company's activity status (active or dormant)

  • The volume of accounting transactions

Accounting for an active company

Before beginning accounting services, your accountant needs:

  • A description of your company's business activities

  • A sales and purchase scheme (usually proposed by the accountant)

To take care of monthly tax returns and prepare an annual report, you must provide the following information and documents (originals or copies)

Source documents your accountant needs

  • Bank statements

    Often it is possible to link bank account with accounting software by API - this would be the best way.

    Transferring banking data via CSV or XML files makes things much easier as well.

    If this is not possible, then a PDF file is required.

  • All sales invoices and receipts

    We recommend to use our online accounting system and issue sales invoices there. This saves your and accountant’s time.

    Otherwise you can deliver invoces and receipt digitaly (email or upload).

  • All purchase invoices and receipts

    By using our online accounting system, you can upload your purchase invoices and receipts directly into your accounting software.

    Otherwise you can deliver invoces and receipt digitaly (email or upload).

  • Additional Transaction Documents

    - Loan agreements
    - Real estate transaction contracts
    - Any other documents supporting business transactions not covered by standard invoices

  • Investment related documents

    Portfolio market value statements as of fiscal year-end (typically December 31)

    In some instances, complete annual transaction records (purchases and sales) might be required.

  • Share Ownership Documents (if applicable)

    Purchase and sale agreements for company-owned shares

    Related ownership documentation might be required in some instances.

  • Annual reports of subsidiaries

    If company has subsidiaries (with ownership 50% or more), then the subsidiary’s annual report must be provided to prepare the annual report.

  • E-commerce transactions

    Report from the platform in Excel format including data about sales country, currency, amount and fees

  • Integration of digital application

    If you want your purchase invoices and expense receipts to go directly to our online software without much effort and manual work, then there are several interfaces to use.

↑

Accounting for a dormant company

A company qualifies as dormant when ALL of the following conditions are met during the fiscal year:

  1. No bank or securities account transactions

  2. No sales invoices issued

  3. No purchase invoices received

  4. No changes in assets

  5. No changes in liabilities

Documentation requirement: Written confirmation that no transactions occurred during the fiscal year.

Monthly-based accounting

Required for companies that:

  • Hold a VAT identification number

  • Have taxable expenses (e.g., salary payments)

Key deadlines:

  • Income tax returns: By the 10th of the following month

  • VAT returns: By the 20th of the following month

  • Source documents must be provided to your accountant at the beginning of each month

Yearly-based accounting

Available for companies that:

  • Do not have a VAT identification number

  • Have no taxable expenses

Key deadline: Annual report submission within 6 months after fiscal year-end (typically by June 30)

Best Practices

  1. Digitize your processes: Use online accounting systems to streamline document management

  2. Maintain consistency: Provide documents in the same format each month

  3. Stay organized: Keep all supporting documentation readily accessible

  4. Communicate clearly: Ensure your accountant understands your business model and any unique transactions

  5. Meet deadlines: Submit documents promptly to avoid late filing penalties

Document Delivery Methods

  • Optimal: Direct integration through accounting software

  • Good: Digital uploads or email submissions

  • Acceptable: PDF copies of original documents

By maintaining proper documentation and understanding these requirements, you can ensure smooth accounting processes and regulatory compliance for your Estonian company.