Estonia Combines VAT and ESL Returns by January 2025

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 2025 reporting period.

The new requirement applies 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 Estonian Tax Authority has released a revised VAT return form and supplement to be used as of January 2025. The updated form will feature new sections or boxes to capture information on intra-Community supplies of goods and services, integrating the ESL data into the VAT return.

It is important to note that 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.

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.

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