What are VAT, EORI, and IBAN for Estonian companies?

VAT in Estonia

VAT (Value Added Tax) is a consumption tax levied on the prices of goods and services, collected at every stage of the exchange. The VAT rate in Estonia is 20% (standard rate), but it can be reduced to 9% if you supply certain goods and services. You become a VAT payer (obligated to obtain a VAT number) if the threshold of 40,000 EUR is exceeded. You can learn more about these and other VAT intricacies in Estonia in this article.

Discover how World Company Setup can simplify the VAT workload for your Estonian company.

EORI - Economic Operator Registration and Identification Number

The EORI number is a unique number used in the European Union for the identification of companies and individuals (economic operators - a special legal status) who are active in a customs-related field in the EU. Your business can operate both within and outside the EU. Every company that works with the import, export, or transit of goods is obliged to obtain this number, which legalizes its activity and allows a company to work freely in an economic area. Please note that you must obtain this number before starting your customs procedures.

The EORI number is issued by the customs administration of the EU Member State where a company is established. In the case of Estonian companies, you need to obtain an EORI from the Estonian Tax and Customs Board. And this process will be done for free and completely online (as with almost everything in Estonia). A unique Estonian EORI number registration means registration in the Economic Operators Registration and Identification system, where all EORI numbers are listed.

Note that you do not need to obtain an EORI number if your company does not trade in physical goods across the European Union or only sells digital products. In the case of Estonian companies, e-Residency will be sufficient to work in the main areas of economic life. Remember that the EORI is a unique number, meaning a company can only be registered under a single number.

Get VAT, EORI, or IBAN with World Company Setup

IBAN - International Bank Account Number

The IBAN is a 20-digit international number used for both domestic and international transactions, which simplifies and standardizes your interaction with banks and financial institutions not only in the EEA but in almost the entire world. You can check here which countries have introduced the IBAN. Yes, it used to be a special BBAN number for domestic payments, but since 2014, domestic and international transactions in Estonia have been set as IBAN. An IBAN number has actually made international trade life much easier and safer, as the payment process has become standardized, and possible errors with transactions between different countries have been eliminated.

You should get an IBAN number if you are planning to pay invoices from all over the world. An IBAN will make your transactions safe, easy, and fast. You can get this number from Estonian banks. Visit an official tool to check your IBAN number.

How Can World Company Setup Help You?

Our job is to make things easier for your company. And of course, we can help you with all these issues. If you want to get a VAT, EORI, or IBAN as soon as possible, do not hesitate to contact us. World Company Setup can save you from many time-consuming processes like company formation and accounting, and help you perform such a tiring task with ease. Forget the struggles, just visit our website to get one step closer to the paperless future.

Get Information on Becoming an E-Resident and Opening a Company in Estonia