VAT Questions

The Value Added Tax, or VAT, in the European Union is a general, broadly based consumption tax assessed on the value added to goods and services. It applies more or less to all our services and services that are bought and sold for use or consumption in the European Union.

The services which are sold for export (in other words, services which are sold to customers abroad) are normally not subject to VAT. Conversely imports are taxed to keep the system fair for EU producers so that they can compete on equal terms on the European market with suppliers situated outside the Union.

VAT rules in Europe depend on where you are, what you sell, where your customer is based, and whether your customer is a business or an individual. Although the regulations differ across national lines, the following steps are consistent if you’re selling in the EU.

How VAT excl / incl works?

  • Estonian residents will be billed with VAT 20%.
  • EU residents with valid VAT registry ID will be billed with 0% VAT according EU reverse-charge procedure, described in VAT directive.
  • All others EU residents will be billed with home country VAT.
  • All non-Estonian and non-EU residents will be billed with 0% VAT.

Identification of a VAT ID number provided

If you provided a valid VAT ID number, we can consider your account as a business. We can verify the validity of the number with the VAT Information Exchange System (VIES) portal. This is required to verify the VAT ID number to help prevent tax fraud.

VAT Information Exchange System (VIES)