Buying goods abroad: EU acquisitions, imports, customs and excise

When your Estonian company buys goods abroad, the tax depends on where the goods come from. Goods from another EU country carry no customs duty, but your company declares Estonian VAT on them. Goods from outside the EU go through customs: they may carry customs duty, and they normally carry import VAT. Customs law is mostly EU law, and the Estonian Customs Act only adds national details.

In short

• From a VAT-registered EU supplier: the invoice has no VAT. If your company is VAT registered, it declares 24 percent Estonian VAT and, for goods used in taxable business, deducts it in the same VAT return (KMD).
• From outside the EU: customs duty depends on the tariff code, the origin and the customs value. Import VAT is normally 24 percent of the customs value plus the duty, any excise, and the transport to the first destination in Estonia.
• A VAT-registered company can get an authorisation to declare import VAT on its KMD, so it pays no cash at the border.
• Every company that imports or exports in its own name needs an EORI number from the Tax and Customs Board (MTA).
• Since 01.07.2026, low-value parcels of up to 150 euros no longer enter duty free.
• Imported excise goods (fuel, alcohol, tobacco) carry excise duty on top.

How is VAT declared on goods bought from a VAT-registered supplier in another EU country?

Your supplier invoices without VAT, and your company self-assesses Estonian VAT as an intra-Community acquisition. If your company is fully VAT registered and uses the goods for taxable business, it deducts the same amount as input VAT in the same return. The net cash effect is zero.

An intra-Community acquisition is a purchase of goods from a taxable person of another member state, with transport from that state to Estonia (VAT Act § 8(1)). The Estonian buyer owes the VAT (VAT Act § 3(4); VAT Directive Art. 200) at the standard rate of 24 percent (VAT Act § 15(1)). The supplier needs your valid Estonian VAT number (EE...) to zero-rate its sale (VAT Directive Art. 138(1)(b)), so give it before the invoice is issued.

The tax point is the 15th day of the month after the month of dispatch, or the invoice date if the invoice comes earlier (VAT Act § 11(2)). The deduction goes into the same period. Keep the supplier's invoice and the transport documents (VAT Act § 29(3), § 31(2) and (8)).

The KMD is due by the 20th of the next month (VAT Act § 27(1)). Fill these rows (KMD form; MTA handbook):

• row 1: the taxable value, that is the price plus incidental costs the supplier charges (VAT Act § 12(1) and (6^1));
• row 4: 24 percent of that value, as output VAT;
• row 5: the same VAT as input VAT, and row 5.2 as well if the goods are a fixed asset;
• rows 6 and 6.1: the value of the acquisition, for information.

A price in a foreign currency is converted at the European Central Bank rate of the tax point (VAT Act § 29(13)).

A company that is not VAT registered does not self-assess. Below 10,000 euros of acquisitions since the start of the calendar year, it simply pays the supplier's own VAT. Above that, it must register as a limited taxable person within 3 working days, pay Estonian VAT on its acquisitions, and it cannot deduct that VAT (VAT Act § 8(3) clause 7, § 21(2) to (4), § 3(5)). Only a full VAT registration gives the right to deduct. See VAT registration.

Common mistakes: filling only row 6 and forgetting rows 1, 4 and 5; deducting VAT on goods not used for taxable supplies; accepting an invoice with foreign VAT for goods that were transported to Estonia. Ask the supplier for a corrected 0 percent invoice.

From 01.01.2027 the VAT return changes: the separate VD report is repealed and its data become part of the KMD (VAT Act § 27(1^5), version in force from 01.01.2027). The self-assessment stays the same, but the rows of the return change. The MTA says the data-based return is available from April 2027 (MTA). Check with the MTA and your software before you file January to March 2027.

What VAT applies to a used asset bought in the EU from a private seller or a margin-scheme dealer?

None in Estonia. A used asset bought from a private person, or from a dealer who sells under the margin scheme, is not an intra-Community acquisition. Your company self-assesses no Estonian VAT and has no input VAT to deduct. The exception is a new means of transport.

The seller's status decides:

• A VAT-registered business that sells normally: an intra-Community acquisition with self-assessment in Estonia, as above, even for second-hand goods.
• A private individual: no taxable supply and no acquisition (VAT Act § 8(1)). The full price is your cost.
• A dealer under the margin scheme: the dealer pays VAT on its margin in its own state, and the invoice shows no VAT. This is not an intra-Community acquisition (VAT Act § 8(3) clause 8; VAT Directive Art. 4(a)). You declare nothing and cannot deduct the hidden VAT.
• A small business exempt in its own state (an "EX" number): no Estonian VAT for a registered buyer (VAT Act § 3(7)).

The margin scheme is for dealers who buy used goods to resell them (VAT Act § 41). A company that buys an asset to use it, for example to rent it out, is not a dealer. It cannot later resell that asset under the margin scheme.

New means of transport. A land motor vehicle over 48 cc or 7.2 kW sold within 6 months of first use or with under 6,000 km, a vessel over 7.5 m within 3 months or under 100 hours of use, or an aircraft over 1,550 kg take-off mass within 3 months or under 40 flight hours, is a new means of transport (VAT Act § 2(7)). Its purchase from any person in another member state is taxed in Estonia. Even a buyer who is not VAT registered pays Estonian VAT within 10 days of arrival and before the vehicle is registered (VAT Act § 3(6) clause 3, § 38(4)).

What customs duty and import VAT apply to goods from outside the EU?

Customs duty depends on the tariff code, the origin and the customs value of the goods. The MTA says the rates are mostly between 0 and 17 percent (MTA, Customs duty). Import VAT is 24 percent of the customs value plus the duty, any excise, and the transport to the first destination in Estonia.

Goods from outside the EU that go on the EU market are declared for release for free circulation (Union Customs Code Art. 201). For VAT this is an import (VAT Act § 6(1) clause 1). The customs debt arises when customs accepts the declaration (Union Customs Code Art. 77).

Three things set the duty:

1. Classification. Each product has a 10-digit TARIC code (Union Customs Code Art. 56 and 57). Look it up in the Estonian Master Tariff System, EMTS (Customs Act § 20).
2. Origin. A free trade agreement can lower the duty to 0 if you present a proof of origin (Union Customs Code Art. 59 to 64).
3. Customs value. Normally the price actually paid, plus, if not already included, commissions (not buying commissions), packing, royalties that are a condition of the sale, and transport, insurance and handling up to the place where the goods enter the EU (Union Customs Code Art. 70 and 71; MTA, Customs value). Without a sale, for example a free sample, other methods apply (Art. 74).

The import VAT base is the customs value, plus the duty, plus any excise, plus transport and other costs to the first destination in Estonia that are not already in the customs value (VAT Act § 13(1); VAT Directive Art. 85 and 86).

Example: price 100,000 euros, transport to the EU border 2,000 euros, duty 0, transport from the border to Tallinn 500 euros. The customs value is 102,000 euros, the VAT base is 102,500 euros, and the import VAT is 24,600 euros.

A VAT-registered company that uses the goods for taxable supplies deducts the import VAT on the basis of the customs declaration, in the period of release (VAT Act § 29(3) clause 2, § 31(4) and (8)). Customs duty is not deductible: it is part of the cost of the goods. Customs repays or remits duty only in the cases of the Union Customs Code, for example an overcharge, defective goods or an error by customs. You apply within three years, or within one year for defective goods or goods that do not match the contract (Union Customs Code Art. 116 to 121).

Some goods also carry anti-dumping duties, sanctions or licence requirements. Check the measures in EMTS before you order.

Can import VAT be declared on the VAT return instead of being paid at the border?

Yes. A VAT-registered company that notifies the MTA in advance and gets its confirmation declares the import VAT on its KMD and deducts it in the same return. No cash is paid at customs (VAT Act § 38(2^1); VAT Directive Art. 211).

Without this authorisation, import VAT is paid under the customs rules at release (VAT Act § 38(2)). A broker often advances it and charges a fee on the tax.

The conditions (VAT Act § 38(2^1) and (2^2)):

• the company is a VAT-registered taxable person (a limited taxable person cannot use it);
• it has been registered for at least the previous 12 consecutive months;
• in those 12 months it filed no return late and had no tax debt;
• for a fixed asset, the 12-month condition does not apply, but the MTA may ask for a guarantee and tells the company within 5 working days.

How it works (MTA handbook):

1. Apply in e-MTA, under customs licences, for the authorisation for goods or the one for fixed assets. For a fixed asset, give the import period (at most 3 months), the estimated value and a description.
2. The MTA confirms or refuses within 30 days (VAT Act § 38(2^3)). The goods authorisation has no end date and is checked every month. The fixed-asset authorisation ends with its term.
3. Apply before the goods are declared. A company that holds the goods authorisation needs no separate fixed-asset authorisation.
4. On the KMD, the MTA pre-fills row 4^1 (import VAT payable) from the import declarations. Your company enters the deduction itself in row 5 and row 5.1, and in row 5.2 for a fixed asset (KMD form).

If the monthly check finds a condition no longer met, the MTA may suspend the right. It may revoke it after six consecutive months of suspension or by a tax decision (VAT Act § 38(2^4) to (2^6)).

A new company that buys one large asset should apply for the fixed-asset authorisation before the asset arrives. Without it, the company must finance the VAT at the border and get it back only through a later KMD refund.

Does a company need an EORI number?

Yes. Any company that imports, exports or carries out other customs operations in its own name needs an EORI number. In Estonia the MTA issues it, and it is valid across the EU (Union Customs Code Art. 9; Customs Act § 3(1)).

An Estonian OÜ gets its EORI number from the MTA, even if its first import happens in another member state. Apply in e-MTA under customs, "Economic operators registration and identification number (EORI)". The applicant must be a board member or hold the access right for EORI (MTA, EORI).

Rules to know (MTA, EORI):

• one company has one EORI number, used everywhere in the EU;
• you need it even when a broker declares for you, because the declaration names the importer by it;
• a GB EORI number from the United Kingdom is not valid in the EU.

Apply as soon as you plan the first import. A courier may hold a business parcel until you give an EORI number.

Should you use a customs broker or file the import declaration yourself?

Both are possible. A company may lodge its own customs declaration with no licence (Union Customs Code Art. 170). A broker is useful for a one-off, unusual or high-value import.

A broker (customs agency) acts for you in one of two ways (Union Customs Code Art. 18):

• Direct representation: the broker acts in your name. Your company is the declarant and owes the duty.
• Indirect representation: the broker acts in its own name. It becomes the declarant and is jointly liable for the duty with your company (Union Customs Code Art. 77(3) and 84).

In Estonia, a customs representative needs an MTA customs agency licence, even without a fee. The only exceptions are a narrow case under Union Customs Code Art. 18(2) and a private person who represents another private person outside any business (Customs Act § 17). The MTA publishes the list of agencies. You authorise the broker in e-MTA or by a written power of attorney (Union Customs Code Art. 19; MTA, Customs agencies). Both the declarant and the representative answer for the accuracy of the data (Union Customs Code Art. 15(2)). Import VAT paid through a customs agency is deductible by your company after release, not by the agency (VAT Act § 31(6) and (7)).

To file yourself, lodge the declaration electronically in the MTA import system through e-MTA (MTA, Free circulation). You need the EORI number, the tariff code, the customs value, the supporting documents, and the reference of the previous document.

That reference is the most common reason for a rejection. Goods that arrive from outside the EU first go into temporary storage, under a temporary storage declaration that the carrier or courier lodges (Union Customs Code Art. 139 and 145). Your import declaration must refer to that exact document. If you enter the air waybill number in place of the MRN of the temporary storage declaration, or the wrong document type, the system cannot find the goods. Ask the carrier's customs department for the exact document type code, the MRN, the transport document number and the storage location code. Then lodge a new declaration. A rejected declaration was never accepted, so there is nothing to amend (Union Customs Code Art. 172 to 174).

Goods may stay in temporary storage for up to 90 days (Union Customs Code Art. 149). Tell the courier in advance that your company will declare the parcel itself.

What changed for low-value parcels from outside the EU on 01.07.2026?

The customs duty exemption for parcels of up to 150 euros ended on 01.07.2026 (Council Regulation (EU) 2026/382). According to the MTA, a business-to-consumer parcel of up to 150 euros now pays a fixed duty of 3 euros per item category, on top of VAT. A business-to-business parcel of any value is declared normally and pays the ordinary duty rate (MTA, parcels from 01.07.2026).

Import VAT applies to every parcel, whatever its value (VAT Act § 13(3^1)). For a distance sale of up to 150 euros (not excise goods), the seller can charge VAT at checkout under the Import One-Stop Shop (IOSS). The import is then VAT exempt (VAT Act § 43^1(1), § 17(1) clause 11). Without IOSS, the postal operator or courier can collect the 24 percent VAT from the recipient (VAT Act § 43^2).

What this means for your company, according to the MTA:

• a parcel your company buys, including a sample, is declared in the full import profile at the normal duty rate of its tariff code;
• the simplified profile is only for consumer distance sales and gifts between private persons, and it takes no company EORI number;
• you may not group several parcels of up to 150 euros into one to avoid the 3-euro duty (MTA, parcels from 01.07.2026), and customs may refuse separate declarations for parts of one consignment (Customs Act § 28(2));
• your company deducts the import VAT as usual.

Anyone who lodges a low-value declaration before the goods arrive must prepay the tax plus 7 percent. The exceptions are a deferred payment right, the KMD authorisation above, IOSS, and the courier's special arrangement (Customs Act § 27(2) and (3)).

More changes are announced for late 2026, among them a customs handling fee per parcel. Check the MTA page before you rely on the details.

When does a company owe excise duty on fuel, alcohol or tobacco?

A company that buys excise goods in Estonia at the normal price owes nothing: the duty is in the price. It owes excise itself when it imports excise goods from outside the EU, or when it brings in duty-paid goods from another member state for business use.

Excise goods are alcohol, tobacco products, fuel and electricity (Excise Duty Act § 1(1)). The liability arises when the goods are released for consumption, which includes import, or when they arrive in Estonia from another member state without duty suspension (Excise Duty Act § 4^1(1) clause 4, § 24(1)).

• Import from outside the EU: the declarant pays the excise with the customs duty and the import VAT (Excise Duty Act § 9, § 10, § 22(1) clause 2, § 25(4)). Excise is part of the import VAT base (VAT Act § 13(1)).
• Duty-paid goods from another member state for business use, for example wine for resale: only a certified consignee may receive them. The company registers each consignment with the MTA and gives a guarantee before dispatch. It declares and pays Estonian excise within 5 days (Excise Duty Act § 21^1(1), § 25(2^2), § 41(1^1), § 44^4; MTA, Excise duties).
• Fuel in the tank: fuel in the standard tank of a vehicle that arrives from another member state is excise free when it is used in that vehicle and not brought for a commercial purpose, such as sale or transfer. The same applies in international carriage (Excise Duty Act § 69(1) and (2); Directive 2003/96/EC Art. 24). From outside the EU, the standard tank plus up to 10 litres in a can are exempt on the first arrival in a calendar month, with narrower rules for later arrivals (Excise Duty Act § 68). Exempt fuel may not be taken out of the vehicle, stored or passed on.

A company that is not VAT registered and acquires alcohol, tobacco products or fuel (not natural gas) from another member state also owes Estonian VAT, whatever the amount. The 10,000 euro threshold does not apply (VAT Act § 3(6) clause 4, § 21(2), § 38(5)). Excise rates change often (Excise Duty Act § 46 and § 66), so check the rate on the day of release.

How is an imported high-value asset booked and depreciated?

Book the asset at cost: the purchase price plus customs duty, non-refundable taxes, transport, broker fees and the other costs of bringing it into use. Import VAT that your company deducts is not part of the cost. Depreciate the asset over its useful life from the day it is ready for use. Estonian accounting rules do not allow revaluation to market value.

Before a large import, prepare in this order: the EORI number, a full VAT registration, the fixed-asset authorisation for import VAT, and a check of the tariff code and any licence. Keep the customs declaration and its MRN: it is the evidence for the VAT deduction (VAT Act § 31(4)).

The rules come from the Accounting Standards Board guideline RTJ 5 (RTJ). The point numbers below are from the wording for financial years that start on or after 01.01.2027. The earlier wording has the same principles.

• Cost (RTJ 5 points 11 and 12): the purchase price including customs duty and non-refundable taxes, plus directly attributable costs such as transport, installation, testing and professional fees. For a company without the right to deduct, import VAT is part of the cost.
• Depreciation (RTJ 5 points 21 to 30): the cost less the residual value is spread over the useful life, usually straight line. Depreciation reflects use, not market value. The company sets its methods and rates in its accounting policies.
• Components (RTJ 5 points 18 and 19): a significant part with a different useful life, for example an engine, is depreciated separately.
• Later costs (RTJ 5 points 31 and 32): an improvement or a replaced component that brings future benefit is added to the asset, and the carrying amount of the old part is written off. Routine repairs are an expense.
• No revaluation (RTJ 5 point 83): only the cost model is allowed. Only an impairment write-down is possible.

VAT follow-up: if the use of a fixed asset for taxable supplies changes, the deducted input VAT is adjusted at the end of each calendar year for 5 years, or 10 years for immovables (VAT Act § 32(4) to (4^2)). A taxable sale within that period counts as fully taxable use for the rest of the period, so a company that deducted the VAT in full normally repays nothing. If the sale price is below half of the cost, a repayment can still arise (VAT Act § 32(5) and (5^1)).

A car has its own rules: the 50 percent limit on input VAT (VAT Act § 30(3)), the motor vehicle tax and the registration fee. See cars and private use and the motor vehicle tax.

General information, not advice for your situation. The law as in force on 30.09.2026.