31.03.2017

The Estonian government has just approved the bill draft that will raise the VAT registration threshold from 1^st of January 2018, from 16 000 euros to 40 000 euros. The amendment is intended to reduce the level of bureaucracy for small and micro enterprises.

 Finance Minister Sven Sester says that this is going to make life easier for the smallest enterprises with a turnover not exceeding 40 000 euros per year. Thanks to the rise in the threshold small-scale business owners no longer have to keep records and submit tax returns on a monthly basis.

To start paying VAT you have to register your company after its annual turnover has exceeded 40 000 euros. If your company’s turnover is below the given number, then it is not compulsory to register as a VAT payer.