# estonia-vat-return

## Estonia VAT Return Skill (KMD) v2.0

## Section 1 — Quick reference

Read this whole section before classifying anything. The workflow runbook is in `vat-workflow-base` Section 1.

- **Country** — Estonia (Eesti)
- **Standard rate** — 22%
- **Reduced rates** — 13% (accommodation), 9% (books, pharmaceuticals, periodicals, medical devices)
- **Zero rate** — 0% (exports, intra-EU B2B supplies, international transport)
- **Return form** — KMD (Kaibemaksudeklaratsioon)
- **Filing portal** — https://maasikas.emta.ee (e-MTA)
- **Authority** — Maksu- ja Tolliamet (MTA — Estonian Tax and Customs Board)
- **Currency** — EUR only
- **Filing frequencies** — Monthly only
- **Deadline** — 20th of month following period
- **Companion skill (Tier 1, workflow)** — vat-workflow-base v0.1 or later — MUST be loaded
- **Companion skill (Tier 2, EU directive)** — eu-vat-directive v0.1 or later — MUST be loaded
- **Validated by** — Deep research verification, April 2026
- **Validation date** — April 2026

## Section 1 — Quick reference

**Key KMD lines**

| Line | Meaning |
| --- | --- |
| 1 | Taxable supplies at 22% — base |
| 1.1 | Taxable supplies at 13% — base |
| 1.2 | Taxable supplies at 9% — base |
| 2 | Total output KM (calculated) |
| 3 | Intra-EU supply of goods and services (0%) |
| 3.1 | Intra-EU supply of goods (subset) |
| 3.1.1 | Intra-EU supply of goods after processing |
| 3.2 | Intra-EU supply of services (subset) |
| 4 | Exports and 0% supplies |
| 5 | Tax-exempt supply (total) |
| 5.1 | Exempt with right of deduction |
| 5.2 | Exempt without right of deduction |
| 6 | Intra-EU acquisition of goods and services — base (reverse charge) |
| 6.1 | Intra-EU acquisition of goods (subset) |
| 7 | Acquisition of other goods/services subject to KM (non-EU reverse charge) |
| 8 | Margin scheme supplies |
| 5.3 | Input KM on passenger car (50% restriction) |
| 5.4 | Input KM on passenger car (100% — documented) |
| 9 | Total deductible input KM |
| 9.1 | Input KM domestic |
| 9.2 | Input KM intra-EU |
| 9.3 | Input KM imports |
| 9.4 | Input KM non-EU reverse charge |
| 10 | KM payable (Line 2 minus Line 9, if positive) |
| 11 | KM refundable (if Line 9 > Line 2) |

## Section 1 — Quick reference

**Conservative defaults**

| Ambiguity | Default |
| --- | --- |
| Unknown rate on a sale | 22% |
| Unknown VAT status of a purchase | Not deductible |
| Unknown counterparty country | Domestic Estonia |
| Unknown B2B vs B2C for EU customer | B2C, charge 22% |
| Unknown business-use proportion (vehicle) | 50% recovery (statutory default for cars) |
| Unknown SaaS billing entity | Reverse charge from non-EU |
| Unknown blocked-input status | Blocked |

## Section 1 — Quick reference

**Red flag thresholds**

| Threshold | Value |
| --- | --- |
| HIGH single-transaction size | EUR 3,000 |
| HIGH tax-delta on single default | EUR 200 |
| MEDIUM counterparty concentration | >40% |
| MEDIUM conservative-default count | >4 |
| LOW absolute net KM position | EUR 5,000 |

### Required inputs

Minimum viable — bank statement for the month. Acceptable from: SEB Estonia, Swedbank Estonia, LHV Pank, Luminor, Coop Pank, Revolut Business, Wise Business.

Recommended — sales/purchase invoices, KMKR number (EE + 9 digits), prior KMD.

Ideal — complete register, KMD INF annex data (transaction-level reporting for large invoices), prior period reconciliation.

### Estonia-specific refusal catalogue

- **R-EE-1 — Non-registered below threshold** — Non-registered entities do not file KMD returns. (Trigger: turnover < EUR 40,000, not registered)
- **R-EE-2 — Partial exemption** — Partial exemption under KMS Section 32 requires reviewer. (Trigger: mixed taxable/exempt)  _(KMS Section 32)_
- **R-EE-3 — E-resident special cases** — E-resident companies without Estonian fixed establishment may have place-of-supply issues. Specialist review required. (Trigger: e-resident company with no Estonian substance)
- **R-EE-4 — Special schemes** — Margin/travel agent schemes out of scope.

### 3.1 Estonian banks (exempt — exclude)

**Estonian banks (exempt — exclude)**

| Pattern | Treatment | Notes |
| --- | --- | --- |
| SEB, SEB PANK | EXCLUDE | Financial service, exempt |
| SWEDBANK, SWEDBANK AS | EXCLUDE | Same |
| LHV, LHV PANK | EXCLUDE | Same |
| LUMINOR | EXCLUDE | Same |
| COOP PANK | EXCLUDE | Same |
| REVOLUT, WISE, N26 (fee lines) | EXCLUDE | Check for taxable subscriptions |
| INTRESS, INTEREST | EXCLUDE | Interest |
| LAEN, LOAN | EXCLUDE | Loan principal |

### 3.2 Estonian government (exclude)

**Estonian government (exclude)**

| Pattern | Treatment | Notes |
| --- | --- | --- |
| MAKSU- JA TOLLIAMET, MTA, EMTA | EXCLUDE | Tax payment |
| SOTSIAALMAKS, SOCIAL TAX | EXCLUDE | Social tax |
| ARIREGISTER, BUSINESS REGISTER | EXCLUDE | Registration fee |
| PATENDIAMET | EXCLUDE | Patent office |

### 3.3 Estonian utilities

**Estonian utilities**

| Pattern | Treatment | Line | Notes |
| --- | --- | --- | --- |
| EESTI ENERGIA, ENEFIT | Domestic 22% | 9.1 | Electricity |
| ALEXELA | Domestic 22% | 9.1 | Gas/electricity |
| TALLINNA VESI | Domestic 22% | 9.1 | Water |
| TELIA EESTI | Domestic 22% | 9.1 | Telecoms |
| ELISA EESTI | Domestic 22% | 9.1 | Telecoms |
| TELE2 EESTI | Domestic 22% | 9.1 | Telecoms |

### 3.4 Insurance (exempt — exclude)

**Insurance (exempt — exclude)**

| Pattern | Treatment | Notes |
| --- | --- | --- |
| IF KINDLUSTUS | EXCLUDE | Exempt |
| ERGO KINDLUSTUS | EXCLUDE | Same |
| SALVA KINDLUSTUS | EXCLUDE | Same |
| KINDLUSTUS, INSURANCE | EXCLUDE | All exempt |

### 3.5 Post and logistics

**Post and logistics**

| Pattern | Treatment | Notes |
| --- | --- | --- |
| OMNIVA, EESTI POST | EXCLUDE for standard post; 22% for parcel | Universal exempt; parcel taxable |
| DPD EESTI | Domestic 22% | Courier |
| ITELLA, SMARTPOST | Domestic 22% | Parcel terminal |
| DHL INTERNATIONAL | EU reverse charge | Check entity |

### 3.6 SaaS — EU suppliers (reverse charge, Line 6 + 9.2)

**SaaS — EU suppliers (reverse charge, Line 6 + 9.2)**

| Pattern | Billing entity | Notes |
| --- | --- | --- |
| GOOGLE | Google Ireland Ltd (IE) | EU reverse charge |
| MICROSOFT | Microsoft Ireland (IE) | Reverse charge |
| ADOBE | Adobe Ireland (IE) | Reverse charge |
| META, FACEBOOK | Meta Ireland (IE) | Reverse charge |
| SPOTIFY | Spotify AB (SE) | EU reverse charge |
| DROPBOX | Dropbox Ireland (IE) | Reverse charge |
| SLACK | Slack Ireland (IE) | Reverse charge |
| ATLASSIAN | Atlassian BV (NL) | EU reverse charge |
| ZOOM | Zoom Ireland (IE) | Reverse charge |

### 3.7 SaaS — non-EU suppliers (reverse charge, Line 7 + 9.4)

**SaaS — non-EU suppliers (reverse charge, Line 7 + 9.4)**

| Pattern | Billing entity | Notes |
| --- | --- | --- |
| AWS EMEA SARL | LU entity | EU reverse charge (Line 6) |
| NOTION | Notion Labs Inc (US) | Non-EU RC |
| ANTHROPIC, CLAUDE | Anthropic PBC (US) | Non-EU RC |
| OPENAI, CHATGPT | OpenAI Inc (US) | Non-EU RC |
| GITHUB | GitHub Inc (US) | Check if IE |
| FIGMA | Figma Inc (US) | Non-EU RC |
| CANVA | Canva Pty Ltd (AU) | Non-EU RC |

### 3.8 Payment processors

**Payment processors**

| Pattern | Treatment | Notes |
| --- | --- | --- |
| STRIPE (transaction fees) | EXCLUDE (exempt) | Financial service |
| PAYPAL (transaction fees) | EXCLUDE (exempt) | Same |

### 3.9 Professional services

**Professional services**

| Pattern | Treatment | Notes |
| --- | --- | --- |
| NOTAR, NOTARY | Domestic 22% | Legal |
| RAAMATUPIDAJA, ACCOUNTANT | Domestic 22% | Accounting |
| ADVOKAAT, LAWYER | Domestic 22% | Legal |

### 3.10 Payroll (exclude)

**Payroll (exclude)**

| Pattern | Treatment | Notes |
| --- | --- | --- |
| SOTSIAALMAKS | EXCLUDE | Social tax |
| PALK, SALARY | EXCLUDE | Wages |
| TULUMAKS | EXCLUDE | Income tax |

### 3.11 Internal transfers and exclusions

**Internal transfers and exclusions**

| Pattern | Treatment | Notes |
| --- | --- | --- |
| SISEUULEKANNE, OWN TRANSFER | EXCLUDE | Internal |
| DIVIDEND | EXCLUDE | Out of scope |
| LAENU TAGASIMAKSE, LOAN REPAYMENT | EXCLUDE | Loan principal |
| ATM, SULARAHA | Ask | Default exclude |

### Example 1 — Non-EU SaaS reverse charge (Notion)

Input: `03.04.2026 ; NOTION LABS INC ; -14.68 EUR`
Treatment: Non-EU RC. Output KM self-assessed at 22%. Line 7 (base). Input in Line 9.4.

**Example 1 worked table**  _(N)_

| Date | Counterparty | Net | KM | Rate | Line (input) | Line (output) | Default? |
| --- | --- | --- | --- | --- | --- | --- | --- |
| 03.04.2026 | NOTION LABS INC | -14.68 | 3.23 | 22% | 9.4 | 7 | N |

### Example 2 — EU service reverse charge (Google Ads)

Input: `10.04.2026 ; GOOGLE IRELAND LIMITED ; -850.00 EUR`
Treatment: EU RC. Line 6 (base). Output KM at 22%. Input in Line 9.2.

### Example 3 — Entertainment

Input: `15.04.2026 ; RESTORAN TCHAIKOVSKY ; -220.00 EUR`
Treatment: Entertainment input KM not specifically blocked in Estonia (unlike Malta). Deductible if business purpose. Default: block (purpose unknown).

### Example 4 — Passenger vehicle (50% statutory restriction)

Input: `28.04.2026 ; CIRCLE K EESTI ; Fuel ; -60.00 EUR`
Treatment: Passenger car fuel. Estonia has statutory 50% input KM restriction on passenger vehicles (KMS Section 30(4)) unless 100% business use documented and MTA notified. Default: 50% recovery in Line 5.3.

**Example 4 worked table**  _("100% business use documented?")_

| Date | Counterparty | Net | KM | Rate | Line | Default? | Question? |
| --- | --- | --- | --- | --- | --- | --- | --- |
| 28.04.2026 | CIRCLE K EESTI | -50.85 | -5.59 | 22% (50%) | 5.3 | Y | "100% business use documented?" |

### Example 5 — EU B2B service sale

Input: `22.04.2026 ; STUDIO KREBS GMBH ; +3,500.00 EUR`
Treatment: B2B to DE. Line 3.2. 0%. Verify USt-IdNr.

### Example 6 — Capital goods

Input: `18.04.2026 ; EURONICS EESTI ; Laptop ; -1,595.00 EUR`
Treatment: Business equipment. Input KM at 22% in Line 9.1. No specific capital goods monetary threshold in Estonian KMD — track for adjustment period.

### 5.1 Standard 22% (KMS Section 15(1))

- **Standard 22%** — Default. Sales: Line 1. Input: Line 9.1.  _(KMS Section 15(1))_

### 5.2 Reduced 13% (KMS Section 15(2))

- **Reduced 13%** — Accommodation.  _(KMS Section 15(2))_

### 5.3 Reduced 9% (KMS Section 15(2))

- **Reduced 9%** — Books, pharmaceuticals, periodicals, medical devices.  _(KMS Section 15(2))_

### 5.4 Zero rate / exports

- **Zero rate / exports** — Exports: Line 4. Intra-EU goods: Line 3.1. Intra-EU services: Line 3.2.

### 5.5 Exempt without credit (KMS Section 16)

- **Exempt without credit** — Financial, insurance, healthcare, education, postal, gambling, residential rental.  _(KMS Section 16)_

### 5.6 Reverse charge — EU (KMS Section 3(4))

- **Reverse charge — EU** — Base: Line 6. Input: Line 9.2.  _(KMS Section 3(4))_

### 5.7 Reverse charge — non-EU (KMS Section 3(5))

- **Reverse charge — non-EU** — Base: Line 7. Input: Line 9.4.  _(KMS Section 3(5))_

### 5.8 Passenger vehicle 50% restriction (KMS Section 30(4))

- **Passenger vehicle 50% restriction** — All passenger vehicles: 50% input KM in Line 5.3. Exception: 100% in Line 5.4 if documented and MTA notified.  _(KMS Section 30(4))_

### 5.9 Blocked input

- **Blocked input categories** — Personal use: blocked Entertainment: not specifically blocked by statute (deductible if business purpose) Passenger vehicles: 50% default

### 6.1 Vehicle costs — *Default:* 50%. *Question:* "100% documented?"

- **Vehicle costs** — Default: 50%. Question: "100% documented?"

### 6.2 Entertainment — *Default:* block. *Question:* "Business purpose?"

- **Entertainment** — Default: block. Question: "Business purpose?"

### 6.3 SaaS entity — *Default:* non-EU RC. *Question:* "Check invoice."

- **SaaS entity** — Default: non-EU RC. Question: "Check invoice."

### 6.4 Owner transfers — *Default:* exclude.

- **Owner transfers** — Default: exclude.

### 6.5 Individual incoming — *Default:* 22% domestic.

- **Individual incoming** — Default: 22% domestic.

### 6.6 Foreign incoming — *Default:* 22%.

- **Foreign incoming** — Default: 22%.

### 6.7 Large purchases — *Default:* deductible; flag capital.

- **Large purchases** — Default: deductible; flag capital.

### 6.8 E-resident company — *Default:* flag for reviewer.

- **E-resident company** — Default: flag for reviewer.

### 6.9 Cash withdrawals — *Default:* exclude.

- **Cash withdrawals** — Default: exclude.

## Section 7 — Excel working paper template

Per `vat-workflow-base` Section 3. Column H accepts Estonian KMD line codes. Bottom-line: Line 10 (payable) or Line 11 (refundable).

## Section 8 — Estonia bank statement reading guide

CSV conventions. SEB and Swedbank use semicolons, DD.MM.YYYY. LHV exports CSV in EUR.

Estonian language. uuur (rent), palk (salary), intress (interest), ulekanne (transfer).

IBAN prefix. EE = Estonia.

### 9.1 Entity type — *Inference:* OU = company; FIE = sole trader.

- **Entity type** — Inference: OU = company; FIE = sole trader.

### 9.2 KM registration — *Fallback:* "KMKR holder?"

- **KM registration** — Fallback: "KMKR holder?"

### 9.3 KMKR number — *Fallback:* "EE + 9 digits?"

- **KMKR number** — Fallback: "EE + 9 digits?"

### 9.4 Filing period — Monthly only.

- **Filing period** — Monthly only.

### 9.5 E-resident status — *Fallback:* "Are you an e-resident company?"

- **E-resident status** — Fallback: "Are you an e-resident company?"

### 9.6 Exempt supplies — *Fallback:* "Any exempt supplies?"

- **Exempt supplies** — Fallback: "Any exempt supplies?"

### 9.7 Vehicle ownership — *Fallback:* "Own/lease passenger vehicle? MTA notification filed?"

- **Vehicle ownership** — Fallback: "Own/lease passenger vehicle? MTA notification filed?"

### Sources

1. Kaibemaksuseadus (KMS — VAT Act)
2. KMS Section 30(4) (vehicle restriction)
3. EU VAT Directive 2006/112/EC — via companion skill
4. VIES — https://ec.europa.eu/taxation_customs/vies/

### Change log

v2.0 (April 2026): Full rewrite. Estonian banks (SEB EE, Swedbank EE, LHV).
v1.0 (April 2026): Initial skill.

## End of Estonia VAT Return Skill v2.0

This skill is incomplete without BOTH companion files: `vat-workflow-base` v0.1+ AND `eu-vat-directive` v0.1+.

## Disclaimer

This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional before filing or acting upon.

The most up-to-date, verified version of this skill is maintained at [openaccountants.com](https://openaccountants.com).