ACCOUNTING SERVICES IN ESTONIA
Our company specialises in corporate and accounting services for Estonian companies, as well as providing tax and financial consulting services. Our accountants and lawyers have many years of experience and are competent in solving the most complex tasks.
We are always up to date with the latest changes in legislation and developments in the field of accounting and taxation in Estonia and the EU.
Only innovative approach and only the most advanced accounting IT solutions. 1000+ successfully submitted annual reports. 50+ years of combined experience of our employees in the field of accounting and corporate law.We will provide professional accounting support for your company Send enquiry
ACCOUNTING AND BOOKKEEPING IN ESTONIA
Professional accountants and reliable accounting for Estonian companies
According to current legislation, all the companies registered in Estonia are obliged to keep accounting records and submit standardised reports on their business activities to the state in accordance with the applicable procedure. The purpose of this requirement is to provide the state with up-to-date data on the economic performance and financial situation of companies operating in the country.
We offer only quality accounting services for companies from a wide range of sectors and businesses, including innovative enterprises, e-commerce, IT companies, start-ups and crypto-projects. We only offer solutions that help our clients effectively implement their ideas and develop their business projects.
- We are convenient!
We offer our clients the opportunity to connect to and use a free online bookkeeping system, which allows them to invoice their counterparties quickly and conveniently and to keep up to date with their company’s financial performance.
- We are reliable!
Our experts are capable of handling a wide range of diverse and complex accounting tasks. We guarantee the utmost speed, correctness and accuracy in our work, as well as complete confidentiality of relationships with the client. In addition, the risks and professional liability of our employees are insured to the amount of 50,000 euros.
- We are effective!
We simplify the accounting process without sacrificing quality. Our company uses the latest and most advanced accounting software and technological solutions to automate the accounting process and data processing.
We will take care of all the necessary work related to the accounting of your company – from the collection and analysis of primary data to the preparation of tax reporting and financial statements and communication with state authorities. For example, the list of accounting services we provide includes the following:
- Bookkeeping and tax accounting
- Preparation and submission of tax accounts and financial reporting
- Work with human resources, payroll management
- Accounting and tax consulting
- Restoring accounting records
- Representation of the client’s interests in the tax authorities
ACCOUNTING SERVICES IN ESTONIA: START OF WORK
We offer professional accounting and legal support to business projects that are at the initial stage of development or seek to restructure their internal processes. We will analyse the expected business flows, discuss with you the possible nuances in the field of taxation and accounting, and prepare an effective internal infrastructure to ensure that your company’s entry into the market fully meets your expectations.
- Tax and accounting consultancy
The main purpose of a package of tax and accounting consultancy services is to improve the efficiency of bookkeeping and tax accounting. In addition to the above, our accountants and lawyers will provide expert assistance in choosing the best business model for your company and help you organise internal processes of your company so that the further business activities and their individual components become as clear, transparent and predictable as possible.
- Organisation of the accounting system
Before starting your commercial activities, it is important to discuss all possible nuances of the upcoming accounting processes and to agree in detail on all subsequent actions, including the format and timing of primary documentation submission. Internal accounting rules and guidelines should also be developed and adopted within the company, including procedures for maintaining accounting registers, rules for fixing and recording business transactions, principles for processing and storing primary documents, procedure for reflecting income and expenses in reporting documentation, accounting procedures for major equipment and taking inventory, and procedures for preparing reports and other circumstances related to the accounting process.
- Preparation of opening balance sheet
All businesses should, before entering the active business phase, prepare and draw up an opening balance sheet that reflects the company’s assets, equity capital and possible liabilities at the time immediately preceding the commencement of the business activities. The opening balance sheet is the starting point for organising the accounting process and determining the financial performance of each enterprise.
- Obtaining a VAT number in Estonia
The number of the Value Added Tax payer or VAT number is assigned to the entrepreneur on the basis of an application submitted to the Tax and Customs Board. The obligation to register as a VAT payer arises when the VAT taxable turnover of the company exceeds 40,000 euros in one business year. If the taxable turnover has not yet surpassed the previously defined threshold, but the company has directly commenced commercial activities and obtaining a VAT number is a reasonable step, considering the specifics of the business model and the expected business flows of the project, the entrepreneur has the right to register as liable for turnover tax on a voluntary basis.
- Obtaining an EORI number
EORI number (Economic Operators Registration and Identification System) is used to identify entrepreneurs when they carry out their customs procedures and is mandatory for businesses involved in import, export or transit traffic. The issuance of EORI numbers is coordinated by the Tax and Customs Board.
Financial statements are a systematised and unified set of data and information about the financial position, financial performance and changes in the financial position of an enterprise. The purpose of filing the financial statements is to provide the government, business partners and the general public with objective and reliable information about a company’s financial performance.
Financial statements must be prepared professionally and comply with generally accepted principles of reliability, consistency, comparability, objectivity, etc. Our specialists will offer you a full range of accounting services, as well as the preparation of annual reports and other financial statements, taking into account all the nuances and peculiarities of the business processes of your company.
- Filing of the annual reports
The preparation and filing of accounts for the business year is compulsory for all companies registered in Estonia. The annual report is submitted to the Commercial Register within six months of the end of the company’s business year. The annual report must comply with established rules and standards, include the balance sheet, statement of activities (explanatory note), income statement and statement of cash flows.
- Zero balance annual report
Lack of economic activity does not relieve a company from its obligation to submit annual report to the state. In case of complete absence of any economic activity during the reporting period, it is necessary to prepare and submit the zero balance annual report.
- Drawing up interim financial statements
Interim financial statements are financial statements for a period other than the company’s business year (for a specific month or quarter). Most often, the preparation of interim statement is required in case if this statement must be provided to partners and counterparties when concluding important contracts or applying for loans and leases, and also for internal business processes to record interim statuses or determine the seasonal financial performance of an enterprise.
- Submission of statistical reports
Statistics Estonia collects various data on the activities, condition or financial indicators of companies in order to provide the state, the public or authorised organisations with objective and reliable information on the development of the Estonian economy. Research involves businesses providing data and information that will enable a better understanding and evaluation of the social phenomenon in question. When conducting a continuous study, data is collected from all enterprises of the relevant target group. Data are submitted to the Statistics Estonia by completing the relevant questionnaires in the eSTAT electronic environment.
- Reviewing and adjusting the financial statements
Our accountants have the necessary competence and experience to monitor the financial status and performance of enterprises, search for and correct errors and inaccuracies, check the calculation methodologies used and the presentation of data in the reports, and reconcile the results with the data previously submitted to the Commercial Register.
Tax accounts and its preparation is a set of activities in which standardised declarations containing information on the financial performance of an enterprise for a certain period, as well as information on the calculation and payment of relevant state taxes, are submitted to the tax authorities by a pre-determined deadline.
The priority of the team of our specialists is to simplify the process of collecting and processing data on our client’s business activities using the latest technological solutions and to ensure maximum efficiency in submitting tax accounts to the controlling authorities.
- Submission of income tax returns
Companies that pay wages to their employees or make other taxable payments to natural persons, must declare (TSD return) and pay income and social security tax to the state, as well as make contributions to unemployment insurance fund and, if necessary, also make contributions to a mandatory funded pension for their employees. In case if no income tax-deductible payments were made during the accounting period, it is not necessary to submit the TSD return.
- Submission of Value Added Tax (VAT) returns
Entrepreneurs who are registered as Value Added Tax (VAT) payers are obliged to submit to the Estonian Tax and Customs Board a summary data (KMD return) of the turnover and imports of their company (including turnover and imports taxed at a zero or reduced rate) and to withhold the VAT payable and credit the funds to the state. VAT report must also be submitted if the company did not carry out any activities during the reporting period (month).
- Submission of declarations of turnover within the European Community
If a taxable enterprise (VAT payer) has supplied goods or rendered services during the accounting period (month), both directly and within the framework of trilateral deals, to its conunterparties registered as VAT payers in other EU member states, then in such a case it is necessary to submit a report on the turnover within the EU (VD return) to the Estonian tax authorities, in addition to the VAT return.
- Preparation and submission of MOSS, OSS and IOSS returns
A special turnover tax (VAT) procedure for electronic services provided to non-taxable persons in other European Union member states is MOSS (Mini One Stop Shop), which allows the service provider to declare and pay the turnover tax payable in another EU member state through the tax authorities of his own state. This procedure may also be extended to other services provided to non-taxable persons from EU member states whose turnover occurs in the EU member state of the service recipient, to distance selling of goods within the Community and, in some cases, to selling of goods through the OSS (One Stop Shop) online store, and to distance selling of goods imported from non-Community countries, a new special taxation procedure – IOSS (Import One Stop Shop) is introduced.
- Reviewing and adjusting the tax returns
Our specialists are qualified and experienced in checking tax returns and identifying possible inaccuracies that affect the calculation of tax payable. If an audit of the tax returns reveals any errors or deficiencies, it is essential to correct the returns filed and to show the correct data on the tax return, and to pay any tax and penalties that have arisen. A prompt amendment of tax declarations will save the company from possible penalties and other troubles.
If a company makes payments to employees who reside and perform work abroad and at the same time are not Estonian tax residents (e. g. freelancers), there is no obligation for the company to declare such payments to the Tax and Customs Board and pay taxes to the Estonian state treasury. Non-resident employees performing work for the company outside Estonia must declare their income to the tax authorities of their country of tax residence.
Not all companies are required to register as VAT payers and file reports related directly or indirectly to it. The exact list of goods and services that constitute VAT taxable turnover, as well as exceptions to the rules, can be found in the Value Added Tax Act.
An audit is a supplementary check of the company’s financial statements and accounting principles; most commonly, the annual financial report of the company is audited.
The purpose of the audit is to ensure the accuracy and transparency of the company’s economic situation and financial indicators, including the data submitted to the Commercial Register and the Tax and Customs Board.
The annual report must be audited in the companies meeting the following criteria:
а) at least two of the indicators outlined below exceed the established limit values:
- sales revenue or income is more than 4 million euros
- the book value of assets exceeds 2 million euros
- the number of employees in the company exceeds 50
b) at least one of the indicators outlined below exceeds the set limit values:
- sales revenue or income is more than 12 million euros
- the book value of assets exceeds 6 million euros
- the number of employees in the company exceeds 180
The audit is carried out by a specialised audit company or an independent sworn auditor. As part of the audit, all financial, accounting and other relevant documentation is reviewed, and the company’s business processes are examined. An appropriate conclusion on the company’s financial situation and economic performance is prepared on the basis of the results of the audit.
Our company has experience in organising and supporting audits and inspections for businesses from various sectors of economy. Our experts will hold a preliminary consultation, give an initial assessment of the company’s financial situation and the accuracy of its accounting, give advice and suggest corrections of accounting principles if necessary, as well as organise an audit and accompany you through the whole process.
WORK WITH HUMAN RESOURCES
Staff records management is one of the most important business processes in companies with employees. This process regulates the employment relationships between employer and employee, outlines their rights and obligations, and ensures the circulation and archiving of documents related to employees’ work activities. Compliance with all applicable employment law requirements is the employer’s direct and most important responsibility.
Outsourcing personnel accounting will help to avoid unforeseen complications and reduce the risks associated with the intricacies of labour legislation, as well as ensure that employee payments are calculated and tax reports are submitted to the controlling bodies promptly and correctly.
We provide a full range of human resources and personnel management services, including:
- Payroll accounting and management.
- Accounting of holiday pay, travel expenses, sick pays, bonuses, compensation for overtime, etc.>
- Registration of employees in the Employment Register of the Tax and Customs Board
- Official registration of non-resident workers
- Preparation of employment agreements, non-disclosure agreements (NDAs), job descriptions, etc.
- Legal advice on employment law and the resolution of employment disputes
For personalised accountant’s consultation or advice on Estonian taxation and accounting and a individualised quotation on accounting support for your company, please contact our experts by phone, by e-mail or by using the feedback form on our website.
ACCOUNTING SERVICES IN ESTONIA: PRICES
Prices for accounting services are shown below, with VAT 20% added to the prices. All prices shown are for illustrative purposes only. We prepare a tailor-made quotation for each client, taking into account the scope of the company’s business, the expected quantity and quality of the primary documentation and other important circumstances.
- Type of servicesPrice
- Submission of the annual report (price from)150 €
- Accounting services for a company without VAT number (price per month from)75 €
- Accounting services for a company with VAT number (price per month from)150 €
- Accounting or tax advice (1 hour of work)75 €
- Representation of the client’s interests at the Tax and Customs Board (1 hour of work)100 €
- Obtaining a VAT number300 €
- Obtaining an EORI number100€