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Fiscal Representation of Non-Residents

Companies involved in European cross-border operations need to ensure that they comply with the applicable VAT legislation. With different local VAT regulations and foreign languages, complying with the formalities (e.g., preparing and submitting declarations) can be complicated and time consuming.

A non-resident of another Member State engaged in business with no permanent establishment in Estonia has the right to appoint upon registration as a taxable person a fiscal representative specified in the Taxation Act.

Estonian Value-Added Tax Act stipulates that a non-resident of a third country engaged in business with no permanent establishment in Estonia must appoint, upon registration as a taxable person, a fiscal representative, who has been approved by the tax authority.

The fiscal representative of a non-resident is a person to whom a corresponding activity license has been issued by the tax authority and whom a non-resident may authorize to represent them for the performance of the obligations arising in Estonia.

All the rights and obligations of a non-resident extend also to the fiscal representative. The fiscal representative is required to ensure that the non-resident's monetary and non-monetary obligations arising from tax legislation are performed within the set term and in full.

The appointment of a fiscal representative does not change the obligations of the non-resident as they are still liable for fulfilling their tax obligations in Estonia.

BDO Estonia supports non-resident companies in their business activities in Estonia by offering fiscal representative service. We will assist you with:

  • communication with tax authority;
  • registration of a company as a VAT liable person in Estonia;
  • concluding an agreement with tax authority to use e-taxboard;
  • submitting monthly VAT returns and IC sales reports;
  • customs matter etc.

 

Rules related to Brexit since 1 January 2021

After Brexit, since 1 January 2021, also UK is considered as a third country. Thus, according to the Estonian VAT Act, if a UK-established person, engaged in business with no permanent establishment in Estonia, will be registered in Estonia for VAT purposes after Brexit, must appoint, upon registration as a VAT liable person, a fiscal representative.

If a UK-established person engaged in business with no permanent establishment in Estonia, who already has a VAT number in Estonia, as of 1 January 2021 wishes to continue their business activities and retain their Estonian VAT number, must appoint a fiscal representative approved by the tax authority and also notify the tax authority of the fact (by sending a copy of a contract concluded with the chosen fiscal representative to the e-mail address emta@emta.ee).

 

We have the expertise to address your needs and are here to help you. Contact us directly using the adviser@bdo.ee address with more details on your issue.