On 1 January 2013, changes will come into effect related to the place where turnover is generated for services in the case of the long-term leasing or rental of, or the establishment of a usufruct for, transportation vehicles, along with a series of changes related to the submission and preparation of invoices: 

  • The turnover that develops from the long-term leasing or rental of, or the establishment of a usufruct for, transportation vehicles to a non-taxable entity or non-business operator in a non-EU country is considered to have been generated in the country that is the client's country of location or residence.
  • An exemption is being prescribed in connection with the long-term leasing or rental of, or the establishment of a usufruct for, hobby and recreational boats to a non-taxable entity or non-business operator in a non-EU country. In the given case, the turnover is generated in the service provider's location or permanent place of business, where the boat is actually given into the possession of the lessee.
  • An obligation is being prescribed to immediately make invoices available to the competent authorities of other member states, in addition to the Estonian tax authorities. At the same time, the current requirement to notify the tax authorities of the place where the invoices are stored is being abolished.
  • A new provision is being added, according to which the issued invoice must conform to the requirements of the Estonian VAT Act, if the turnover is generated in Estonia or in a non-EU state, or if the recipient of the goods or services implements its own country's reversed charges for the transaction. At the same time, if upon the agreement of the parties, the buyer, instead of the seller, issues the invoice, the requirements of the country where the turnover was generated apply to the invoice.
  • A new provision is being added, according to which the invoice for the intra-Community turnover on goods or the provision of services subject to reverse charges based on the general rule that is issued to a taxable person or limited taxable person in another member state must be issued by the 15th day of the calendar month following the shipment of the goods, their being made available, or the provision of the services. Generally, the invoices will continue to be issued within 7 days of the turnover being generated.
  • The VAT Act § 37 (8) and (81) as well as § 411(5) is being amended in connection with the requirements for referencing in case of reverse charges, travel services, the special procedure that applies to used goods, and issuing invoices to oneself. According to the amendment, in the case of reverse charges,  the reference "reverse charge" must be added to the invoice; in the case of the implementation of the special procedure for the VAT taxation of travel services, the notation "procedure for taxing the profit norm - travel agencies" must be added to the invoice; in the case of the implementation of the special procedure for the taxation of the resale of goods, original works of art or collections and antiques, the notation "procedure for taxing the profit norm - collections and antiques" must be added; and in the case of an invoice being drawn up by the buyer to him/herself, the notation "drawing up an invoice to oneself". The given references must not be replaced with other notations.