- Opting for the SME Scheme: Small and medium-sized enterprises (SMEs) in Estonia can opt for the SME scheme, which exempts them from VAT obligations as long as their taxable supplies do not exceed the national annual threshold of €40,000.
- Excluded Transactions: Certain transactions are excluded from the SME scheme, including occasional transactions like the supply of buildings before first occupation and exempt cross-border supplies of new means of transport.
- Simplified VAT Obligations: SMEs applying the scheme across member states can replace individual VAT registrations and returns with a single prior notification and a consolidated quarterly report submitted in their country of establishment, simplifying compliance.
- Quarantine Periods: SMEs excluded from the scheme face a one-year quarantine period during which they cannot reapply for the exemption, while voluntary departures from the scheme do not incur a quarantine.
- Appeals Process: Appeals related to the SME scheme must be directed to the Member State of establishment for issues like annual turnover and notifications, while appeals regarding national thresholds should be addressed to the Member State of exemption.
Source ec.europa.eu
