Käibemaksuarvestus

Käibemaksuarvestus refers to the accounting procedures and principles related to Value Added Tax (VAT) in Estonia. It is a tax levied on the consumption of goods and services. Businesses registered for VAT are responsible for collecting VAT on their sales and remitting it to the tax authorities. They can also deduct the VAT paid on their business purchases, known as input VAT.

The fundamental principle of käibemaksuarvestus involves tracking both output VAT (VAT on sales) and input VAT (VAT on purchases). The difference between these two amounts determines the net VAT liability or refund. Businesses must issue VAT invoices for their taxable transactions, which serve as documentation for both VAT collection and deduction.

Key aspects of käibemaksuarvestus include determining the place of supply, identifying taxable transactions, and applying the correct VAT rate. Estonia has a standard VAT rate and reduced rates for certain goods and services. Proper record-keeping is crucial to ensure accurate calculations and compliance with tax regulations. This involves maintaining ledgers, invoices, and other supporting documents.

Taxable persons are required to submit regular VAT returns to the Estonian Tax and Customs Board. These returns detail the output VAT collected and input VAT deducted during the reporting period. Failure to comply with VAT regulations can result in penalties and interest. Therefore, businesses must stay informed about current VAT laws and ensure their accounting practices are up-to-date.