Many entrepreneurs, particularly owners of small businesses, have questions about the reverse charge mechanism for services. This occurs when the obligation to calculate and pay VAT shifts from the seller to the buyer of the service. This article clearly explains how reverse charge for services works in Estonia and how to correctly report it in the KMD declaration.
How to Pay Salaries and Taxes After Registering in the Estonian Employment Register
After registering an employee in Nola Accounting and either you or our accountant have entered this information into the Estonian Employment Register, it is important to properly organize the salary payment and tax process to avoid errors and penalties. Let’s go through the steps to do it correctly.
What to Consider When Paying Employee Salaries in 2025
Starting January 1, 2025, the income tax rate in Estonia will increase, directly impacting employees' December paychecks. Employees will receive less net salary than usual. Employers must account for this change to avoid surprises and maintain employee motivation.
All About Taxation in Estonia: Digital Services and Their Taxation
With the development of the digital economy, digital services and their taxation are becoming increasingly important. In Estonia, as in other EU countries, there is a taxation system that regulates the provision of such services both within the country and beyond its borders. In this article, we will explore what constitutes a digital service.
All About Taxation in Estonia: Common Services and Their Taxation
What Are Common Services from a Taxation Perspective? Common services, from the perspective of Estonian legislation, are services that are subject to value-added tax (VAT) according to the so-called general rule.