Estonia Combines VAT and ESL Returns by 2027

In a move to streamline tax compliance, Estonia has approved the consolidation of VAT (Value Added Tax) and ESL (European Sales List) returns into a single compliance obligation. This change is set to take effect starting from the January 2027 reporting period, instead of January 2025 as initially announced.

The updated VAT & ESL return form will apply to all VAT-registered taxpayers in Estonia, including both established and non-established entities. By merging the VAT and ESL returns, the Estonian government aims to simplify reporting requirements and reduce the administrative burden on businesses.

The submission deadline for the consolidated VAT return remains unchanged. Taxpayers must file the return by the 20th day of the month following the end of the reporting period.

Separately, the Estonian Tax Authority has released a revised VAT return form and supplement to be used as of January 2025.

Take a look at Marosa’s overview of VAT due dates in Europe.

Businesses operating in Estonia should prepare for the transition by familiarizing themselves with the new VAT return form and updating their internal compliance systems accordingly.

How can Marosa Help you?

Marosa stays current on the changing digital signature requirements, offering clients guidance on compliance timelines and smooth implementation. Marosa's VAT software VATify automatically applies updated VAT return forms across jurisdictions, ensuring compliance and accuracy in VAT calculations and reporting.

Other news from Estonia: Estonia plans a general B2B e-invoicing mandate by 2027.