Telephone Numbers
Telephone Numbers
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When you set up or start running an Estonian company, three abbreviations come up again and again: VAT, EORI and IBAN. Together, these are the building blocks that let a business trade legally within the European Union, clear customs and receive or send international payments with confidence. For entrepreneurs operating in the EU for the first time, these terms can feel intimidating — yet once you understand what each one does and how they differ, the process becomes straightforward. In this guide, based on current Estonian legislation, we explain in detail what each number is for, how to obtain it, and when it is mandatory for your company.
VAT (Value Added Tax; in Estonian, KMKR) is a consumption tax charged on the value added at every stage of the supply chain for goods and services. The end consumer ultimately bears the tax, while the business collects and reports it on behalf of the state. Thanks to its digital-first tax system, Estonia is known for handling VAT filing and payment almost entirely online.
Estonia increased its standard VAT rate to 24% as of 1 July 2025 (the previous rate was 22%). Reduced rates apply to certain goods and services of a social or cultural nature. The current rates are summarised in the table below:
| Rate | Applies To |
|---|---|
| 24% | Standard rate – most goods and services |
| 13% | Accommodation and accommodation-with-breakfast services |
| 9% | Certain social goods/services, press publications |
| 0% | Exports and intra-EU supplies within the exemption scope |
In Estonia, the obligation to register as a VAT payer arises when your domestic taxable supplies exceed EUR 40,000 from the beginning of the calendar year. Businesses that reach this threshold must apply to the Estonian Tax and Customs Board (EMTA) for a VAT number. In addition, if your intra-EU acquisitions of goods exceed EUR 10,000 in a year, registration as a VAT payer with limited liability may be required. Companies below the threshold can register voluntarily — a common choice for exporters and B2B-focused firms that want to reclaim input VAT.
The taxable period is one calendar month, and both the VAT return and the intra-EU supply report are submitted through the e-MTA environment by the 20th day of the following month. A special scheme for small businesses has also been in force since 1 January 2025.
EORI (Economic Operators Registration and Identification number) is a unique EU-wide number used to identify companies and individuals that carry out customs-related activities in the European Union. Any economic operator that imports, exports or moves goods in transit must obtain this number before starting customs declarations. The EORI allows your business to be recognised under a single identity in the customs system, and a company can hold only one EORI number.
The EORI number is issued by the customs administration of the EU Member State where the company is established. For Estonian companies, the application is made through the Estonian Tax and Customs Board (EMTA). As with almost everything in Estonia, the process is fully online and generally free of charge. Once approved, your number is registered in the central system that lists all EU EORI numbers and becomes usable in your customs operations.
IBAN (International Bank Account Number) is a standardised account-identification format used for both domestic and international payments. For Estonia, the IBAN begins with the "EE" country code and consists of a total of 20 characters. The IBAN system makes payments standard, fast and secure by minimising errors in cross-border transactions. Estonia has used the IBAN standard for both domestic and international transactions since 2014.
If you plan to receive or pay invoices from anywhere in the world, you need an IBAN. You can obtain one through an Estonian bank account opened in your company's name or through a licensed electronic money / fintech institution (EMI). For e-Residency entrepreneurs, fintech-based business accounts are a popular alternative because they allow remote account opening.
When opening a business account in Estonia there are two main options. Traditional banks may require a physical presence or a strong local connection, and the process can be more selective for remote, non-resident entrepreneurs. Licensed fintech/EMI institutions, by contrast, offer e-Residents fully remote account opening, multi-currency support and fast integration. Both options provide a valid IBAN; the choice depends on your transaction volume, cash needs and any additional requirements such as credit or card services.
Even if you have not crossed the threshold, voluntary VAT registration can be financially advantageous if your business model is mainly B2B within the EU or if you regularly purchase VAT-bearing inputs (software, services, equipment). This lets you reclaim the input VAT on your purchases and improve cash flow. On the other hand, if your customers are end consumers (B2C) and price-sensitive, early VAT registration can make your products appear relatively more expensive. The decision should therefore be assessed based on your customer profile and supply structure.
Although these three numbers are often confused, they serve entirely different purposes. The comparison table below summarises the function of each and when it is required:
| Number | Purpose | Issued By | When Needed |
|---|---|---|---|
| VAT | Collecting and reporting value added tax | EMTA (Tax and Customs Board) | When the EUR 40,000 threshold is exceeded, or voluntarily |
| EORI | Identification in customs procedures | EMTA (customs administration) | For import/export/transit of physical goods |
| IBAN | Receiving/sending payments via a bank account | Bank or licensed fintech (EMI) | For international/domestic payments |
Obtaining these three numbers in the right sequence significantly reduces wasted time and administrative friction. A typical roadmap in Estonia follows these steps: first you obtain your digital identity through e-Residency, then complete your OÜ (private limited company) registration. After incorporation, you open a business bank account — and therefore an IBAN — to manage commercial payments. As you approach the VAT threshold or decide to register voluntarily, you apply for a VAT number. Finally, just before you start trading in physical goods, you obtain your EORI number.
| Step | Action | When? |
|---|---|---|
| 1 | e-Residency and OÜ registration | At incorporation |
| 2 | Bank/fintech account and IBAN | Right after incorporation |
| 3 | VAT registration | Near the threshold or voluntarily |
| 4 | EORI application | Before customs operations |
The most common misconception businesses fall into is assuming that every Estonian company automatically needs a VAT and an EORI number. In reality, these numbers are not mandatory for many companies that sell only digital services or stay below the threshold. A second frequent mistake is delaying VAT registration and then facing retroactive obligations and penalties after the threshold is crossed. Another important point is that the validity of a VAT number can be checked through the EU VIES system; verifying your trading partners' numbers reduces the risk of errors in cross-border transactions.
If you are VAT-registered, it is critical not to miss your monthly filing period and payment deadlines (the 20th of the following month). Although Estonia's digital infrastructure allows returns to be completed quickly via e-MTA, keeping orderly accounting records and applying invoicing obligations correctly will lower your compliance costs over the long term.
VAT registration, the EORI application and opening a business bank account (IBAN) are processes that move quickly when handled in the right order with complete documentation — but they require attention to detail. At World Company Setup, we provide end-to-end advisory across all of these steps, from the incorporation of your Estonian company to accounting and tax compliance. We help you identify which numbers your company actually needs so you can avoid unnecessary obligations.
To review the full Estonian company formation process, see our Setting Up a Company in Estonia guide, and get in touch through our contact page for a tailored assessment.
When setting up a company in Estonia, you may encounter the following rather complex terms: VAT, EORI and IBAN are very important for every company. If you are opening your first company or are not fully familiar with how companies in the EU work, this topic may seem a little daunting, but don't worry, we are here to help you navigate this cloud of uncertainty.
Estonia's standard VAT rate has been 24% since 1 July 2025. Reduced rates of 13% (accommodation), 9% (certain social goods/services and publications) and 0% (exports, intra-EU supplies) also apply.
EORI stands for Economic Operators Registration and Identification number. It is a unique EU-wide number that identifies companies and individuals carrying out import, export or transit of goods within the customs system.
Estonian companies apply for an EORI through the Estonian Tax and Customs Board (EMTA). The process is fully online and generally free; once approved, the number is recorded in the central EU system.
An Estonian IBAN begins with the EE country code and consists of a total of 20 characters. It is a standardised account-number format used for both domestic and international payments.
The obligation to register for VAT arises when your domestic taxable supplies exceed EUR 40,000 from the start of the calendar year. Registration may also be required if intra-EU acquisitions exceed EUR 10,000.
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