Estonian VAT was raised in January 2024 from 20 % to 22 % — the largest hike in history. The system is simple: 22 % standard (most goods/services), 9 % reduced (books, magazines, accommodation), 0 % export (intra-EU reverse charge). The KMD form is filed with EMTA by the 20th of each month. 4b2b calculates VAT line by line and fills KMD completely.
In January 2024 the rate went from 20 % to 22 % — how to handle January invoices?
Transition rule: invoice date determines the rate. Up to 31.12.2023 = 20 %, from 01.01.2024 = 22 %. For advances: advance invoice = old rate, final invoice = new rate (advance portion). The platform applies the rate automatically based on invoice date.
We sell books (9 %) and stationery (22 %) on the same receipt.
Each invoice line carries its own rate. KMD form boxes 1, 2 and 5 (for 22 %, 9 %, 0 % respectively) are filled separately. VAT is aggregated per rate automatically and exactly matches the form requirements.
We export to Finland — how is reverse charge reflected?
Intra-EU B2B: 0 % VAT outbound, automatic VIES check. KMD form line 3.1 (intra-EU goods) or 3.1.1 (services). The client pays VAT in their country. The VIES recapitulative statement is submitted to EMTA automatically each month.
The entire 4b2b ecosystem is built for the Estonian market — from e-Residency through EMTA and X-Road to ID-card / Smart-ID signatures.
