Käibemaksukohuslane

Käibemaksukohuslane is a term used in Estonia to refer to a person or entity that is registered as a value-added tax (VAT) payer in accordance with Estonian tax legislation. This status is typically assigned to businesses and individuals engaged in economic activities that involve taxable supplies of goods or services within Estonia or across borders within the European Union.

The primary responsibility of a käibemaksukohuslane is to charge VAT on their sales, properly document transactions, and submit periodic VAT returns to the Estonian Tax and Customs Board (Maksu- ja Tolliamet). They also have the right to deduct input VAT from their purchases, thereby reducing their overall tax liability.

To become a käibemaksukohuslane, a person or business must meet certain threshold criteria, such as annual turnover exceeding a specified limit set by Estonian law. Registration is mandatory for those who conduct taxable transactions above this threshold or choose to register voluntarily. Once registered, the entity must comply with specific reporting and invoicing requirements to ensure transparency and adherence to tax regulations.

The status of käibemaksukohuslane is crucial for businesses engaging in cross-border trade within the EU, as it facilitates compliance with VAT rules and enables the recovery of VAT paid on inputs. Maintaining accurate records and submitting timely declarations are essential duties associated with this status.

Overall, being a käibemaksukohuslane is an important aspect of conducting lawful and tax-compliant business activities in Estonia, ensuring proper fiscal conduct and contributing to the country's tax system.