ACCOUNTING ON A MONTHLY BASIS
Accounting is an important part of the daily operations of a company. The financial statements of the company must be presented in a fair, objective, and comparable manner and the information provided must be kept up to date.
Accounting and financial accounting policies are set out in the Accounting Act, the Estonian Financial Reporting Standard, and the Guidelines of the Accounting Board.
In order to be able to run your business in Estonia smoothly, we offer our clients a monthly accounting service.
An online accounting system will be set up to provide accounting services. Accounting procedures require the following information from the client: the company’s bank account statements, documentation for the expenses (invoices, receipts), sales invoices, purchase and sales contracts, etc. We also provide accounting-related advisory services related to taxes, expenses, invoices, etc.
If you are interested in the service and need more information, please send us a request via the contact form at the bottom of this page.
Each company shall provide the period of its financial year, which is generally 12 months starting on 1 January and ending on 31 December. Companies are required to submit an annual report within 6 months from the end of the financial year.
We provide our clients with the preparation and submission of the annual report. The service can also be ordered if you do not use our monthly accounting service.
If the employee is working in Estonia and works under a contract of employment or if a member of the management board works under contract of a management board member, all taxes must be paid in Estonia and a monthly income tax return must be filed.
General payroll taxes are covered by both the employer and the employee. Social tax and unemployment insurance are covered by the employer, while income tax and unemployment insurance are covered by the employee.
We provide you with a payroll service and payroll tax filing service. Please send us your enquiry and we will provide a solution to your needs. We also offer drafting employment and management board contracts as an additional service.
TAX RETURNS AND COMPLIANCE
There are two main tax returns in Estonia – value added tax (VAT) return and income tax return.
The VAT return must indicate the company’s taxable turnover and the VAT which is recoverable. The VAT return is based on accrual accounting and not on a cash basis. VAT is paid on the sale once the sale is complete, even if the buyer has not yet paid the money.
Registration as a VAT payer can be either mandatory or optional. The obligation to register as a VAT company arises from the date on which the taxable supply of the company’s transactions exceeds EUR 40,000 as calculated from the beginning of the calendar year. If the company does not yet have a taxable supply or if his taxable supply does not exceed EUR 40,000, VAT registration is optional. The prerequisite for VAT registration is that the company is engaged in business or intends to do business in Estonia.
VAT payers use the income tax return every month if there are no tax payments. Non-VAT payers should fill the income tax return only if the company has something to declare. The income tax return and supplements must be submitted by the 10th day of the month following the month in which taxable expenses were incurred.
We provide a tax filing service. For more information, please send a request using the enquiry form below.
We provide accounting consulting services to ensure compliance with Estonian legislation and efficient business management. Tax and accounting consultancy can help you to optimise the tax treatment of your accounting procedures and operations. Some clients prefer to do their own accounting. Therefore, it is wise to order advice and consultation from an Estonian accounting firm.