In Estonia, the income tax rate for private entrepreneurs and corporations is 20% and you can pay entirely online.

 

The normal VAT rate in Estonia is 22%.

 

VAT rate 9% can be reduced and that applies to certain goods and services that includes books, teaching/learning materials, newspapers and magazines, accommodation services, medicines, and medical equipment, sanitary and toiletry products.

 

The 0% VAT rate applies to exports, the intra-community supply of goods, international passenger services, goods, and services supplied onboard ships and airplanes, delivery of goods and more.

 

If your annual taxable turnover is below €40.000, VAT registration in Estonia is not obligatory. If your company exceeds this amount, then you need to register your company as a VAT company. For more information click on this LINK.