OÜ ABC Kapital provides accounting services to companies
- Preparation of reports
- Submission of declarations
Outsourcing of accounting services enables cost saving as compared to intracompany accounting.
Estonian accounting and taxation system seems for most foreigners rather simple. But there are many rules that is important to be aware of. For exaple – the annual report needs to be filed in to the Commercial Register even if no economic transactions have been made. Due date for filing in an annual report is six months after the companys financial year has closed. If annual report is filed in late the Commercial Register has the right to charge a penalty.
Certain cost are not eligible as business expenses. All cost of the company need to be related - at least some level – to companyi’s enterprise. If the coporate bank card is used to pay for any expenses and no invoice is presented to prove that the expense is business related, such expence is subject to the corporate income tax. All cost need to be backed up by source documents (invoices).
In Estonia it is common to pay salaries in the beginning of next month so there will be more time for tax accounting. If you pay May’s salay in June you can declare it in July.
It is also important to know that if the equity drops below 2500 EUR or is less than half of the share capital measures have to been taken. Shareholders should restore the equity capital (f.e additional contribution) or dissolve the company.
If the company don’t have VAT registration then the company is not eglible for VAT refunds. It also means that it is not possible to use 0% VAT within EU (it is possible when seller and purchaser both have VAT numbers) If the company wishes to get a VAT number, it should file in an application to Estonian Tax and Customs Board. When companys turnover is less than 16 000 EUR the VAT number is optional. It means that the company can file in an application if it wishes so but Tax and Customs Board is not legally required to award a VAT number.
When the turnover exeeds 16 000 EUR it is required to have an VAT number. After that the company is required to file in VAT (KMD) and payroll (TSD) declaration every month even if no transactions or payments have been made. The deadline for VAT declaration is 20th every month and payroll taxes declaration date is 10th every month.
If some following months the company has had no sales subject to VAT, the company’s VAT number could be revoked. Before doing that Tax and Customs Board send a written caution.
If company has paid exess VAT, it is generally refunded within 30 days afer the relevant application is filed. But you should notice that in some cases tax authorities want to check the company’s paperwork.
The auditing obligation applies to an accounting entity in whose annual financial statements at least two of the indicators listed below exceed the following values:
- sales revenue or income 2 000 000 euros;
- total assets as at the balance sheet date 1 000 000 euros;
- average number of employees 30.
Furthermore, the auditing obligation also applies to an accounting entity in whose annual financial statements at least one of the indicators listed below exceeds the following value:
- sales revenue or income 6 000 000 euros;
- total assets as at the balance sheet date 3 000 000 euros;
- average number of employees 90.
Public limited companies are always subject to auditing