Services supplied to overseas customers – main rules


The reverse charge

12 Estonia
12 Estonia | Commentary

The reverse charge

12 Estonia | Commentary

The reverse charge

If certain services are bought in from outside Estonia, the reverse charge will have to be applied by businesses without any threshold.

Under the reverse charge, a notional amount of VAT is accounted for as output tax on the VAT return and this VAT is recovered as input VAT by taxable person. However, for taxable persons with limited liability, such reverse charge will represent a cost.

The reverse charge applies to a range of services, including the following:


    •     Grant of the use of intellectual property or transfer of the right to use intellectual property.


    •     Advertising services.



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