tax

The Estonian CIT, or flat rate on corporate income, is a popular tax arrangement that defers taxation of company profits until they are distributed. However, to take advantage of this favorable system, entrepreneurs must meet several conditions. One of the most important is the employment requirement. In this article we explain what this condition is and how to meet it.

If the goods are supplied only between two VAT taxpayers, i.e. the seller and the buyer, and the goods are shipped or transported from one EU country to another EU country (or to a non-EU country), the rules for settling VAT are generally simple. As a rule, there is an intra-Community supply of goods (ICS) in the country of dispatch, and an intra-Community acquisition of goods (ICA) in the country of goods’ destination, respectively. And when the destination is an non-EU country there is an export of goods in the country of dispatch and import of goods in the country of the goods’ destination accordingly.