Starting from 1 June 2010 sales tax of 1 % should be paid on goods and services sold to the private persons by retail trade, catering and service enterprises whose place of activity is registered in Tallinn.

The tax liability arises when a service is provided to the client or goods are made available or sent to the buyer or when full or part of payment for the goods is received.

In case of long-term contracts sales tax has to be paid from the goods sold or services provided after 1 June.

Tax will not be imposed on the following goods and services:

  • Products and services sold via internet (e-commerce)
  • Electricity, thermal energy, natural gas and water sold through distribution networks
  • Goods and services that are sold in water or air vehicles, trains or buses during a trip that starts or ends outside Tallinn or makes way outside of Tallinn
  • Medicals that are imposed with 9% VAT
  • Bread products that does not contain honey, eggs, cheese, berries or fruits
  • Milk and certain dairy products
  • Special milk for infants and products containing milk and milk products or homogenized products for infants use
  • Infant diapers
  • Boats, yachts and speedboats which length of 4-12 meters.

The sales tax must be declared and paid quarterly by the 20th of the first month of the next quarter.

The sales tax is administrated by the Tax and Customs Board who receives and checks the declarations, deals with the collection and also refunds. Tallinn City Enterprise Department is responsible for the advising and claims.