Estonia - Extension of domestic reverse charge to metals from 1 January 2017

30 September 2016

In an effort to prevent VAT fraud the Estonian Government has approved a draft law that will expand the scope of the domestic reverse charge to include certain metal products which are mainly used for construction services and in the engineering industry.

It is likely that the new rules will be implemented from 1 January 2017 and if accepted it will mean that the providers of these types of goods will no longer have to charge VAT on their supplies to other business customers, it will then be the business customer’s responsibility to account for the VAT in the country.