käibemaksukohustusega

Käibemaksukohustusega refers to the obligation to pay value-added tax (VAT). In Estonia, VAT is a consumption tax levied on the supply of goods and services. Businesses that exceed a certain annual turnover threshold are required to register as VAT payers and charge VAT on their taxable sales. This obligation applies to most goods and services provided within Estonia, as well as imports.

There is a VAT exemption threshold. If a business's taxable turnover does not exceed this threshold in a calendar year, they are not obligated to register as a VAT payer. However, they may voluntarily register. Once registered, a business becomes obliged to collect VAT from its customers and remit it to the Estonian Tax and Customs Board. This involves filing regular VAT returns.

The standard VAT rate in Estonia is 20%. Reduced rates apply to certain goods and services, such as books, accommodation, and medicines. The VAT liability is calculated as the difference between the VAT collected on sales (output VAT) and the VAT paid on business purchases (input VAT). Businesses can deduct the input VAT they have paid on goods and services used for their taxable economic activity. This system ensures that VAT is ultimately borne by the final consumer. Failure to comply with VAT obligations can result in penalties and fines.