The standard VAT rate is 20%. A reduced rate of 9% is applied to books, periodicals (with few exceptions), hotel accommodation services, and listed pharmaceuticals.
When the turnover of the taxable goods or services of Estonian company exceed EUR 40,000 in a calendar year, VAT registration is mandatory. Voluntary registration is also possible,but certain transactions of non-resident businesses require Estonian VAT registration in order to be able to issue invoices.
VAT has to be declared and paid monthly.