This online calculator obtains the amount before or after applying the VAT rate for Estonia. Enter the product’s price and select the VAT rate. If you don’t know the VAT rate for your type of digital product, check the official standard and reduced VAT rates for Estonia.

How to Automate VAT Calculations

Vatstack Quotes is a powerful tax engine that lets you automate VAT calculations for every online payment. Don’t waste valuable manhours of your time in tax research and implementation of tax treatment logic all by yourself.

By accessing centralized VAT rules through our API, you can automate VAT calculations for every business scenario from the get-go:

  • Geolocates your customer by IP address to check which VAT rate is applicable for the purchase in connection with your own nexus.
  • Calculates the VAT amount and final amount inclusive or exclusive of VAT.
  • Supports reduced rates for various types of digital products.
  • Exempts business customers from VAT by verifying their VAT-registration status with government databases.

Why VAT Rate Calculation is Important

Before you charge a VAT, you have to know which VAT rate is applicable for the customer. However, if you have a business or corporate customer, the VAT rate will be zero-rated for electronically supplied services (or ESS). This is a process called reverse charge whereby the responsibility to report and pay VAT has been reversed to the buyer.

Charging VAT on behalf of tax administrations requires that are registered for VAT and have obtained a unique VAT number. The collected VAT returns are filed electronically on a monthly or quarterly basis. Contact us to see how Vatstack’s solutions can help you to automate the process.

Further Resources