News

October 6, 2016

Compensation for damages or expenses is not turnover

Taxpayers know that everything which is not a service is goods. However, things get complicated when we’re dealing with something that does not fall into…

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September 15, 2016

Change in declaration of long-term cross-border services in value added tax returns

Pursuant to the legislation in force before the amendment, the supply of services was considered to have occurred or the services were considered to have…

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August 31, 2016

Changes in approach to VAT payable on goods and services sold to European Union institutions and NATO armed forces

Replacing the VAT refund system with tax exemption (or, to put it correctly, taxation with a 0% tax rate) will considerably reduce the administrative burden…

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August 23, 2016

Formal omissions on invoices not an obstacle to deduction of input VAT

In the analysed dispute, the tax authority did not allow the taxable person to deduct input VAT for the reason that the buyer’s VAT registration…

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August 15, 2016

A person cannot be deleted from the register of persons liable to VAT for the reason that their business is only partially proven

In the course of an audit of engaging in business, the representative of the taxpayer appeared before the tax authority and gave explanations and, later,…

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August 10, 2016

Similar restrictions will from now on apply to the sale, use and promotion of electronic cigarettes as in the case of other tobacco products

On 8 June, the Riigikogu enacted the Tobacco Act Amendment Act that transposes the new Tobacco Products Directive of the European Union. This directive seeks…

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August 3, 2016

Deduction from rental income of a natural person

A new provision was added to the ITA. According to the provision, 20% is deducted from rent (subsection 1 of § 16 of the ITA)…

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July 27, 2016

There are plans to increase the threshold for registering as a VAT payer and to extend the circle of objects of domestic reverse charge procedure

The threshold of 16,000 euros currently valid in Estonia has been in force since 1 April 1995. The kroon was the effective currency at the…

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July 22, 2016

Accommodation service versus lease of an immovable property. How to distinguish them?

So far, the tax authorities and the Ministry of Finance have taken the stand that voluntary taxation of the dwellings with value added tax is…

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