The Estonian Chamber of Commerce has prepared an overview of the most important amendments of the law that entered into force on 1 July 2019. The most significant change for entrepreneurs is the fact that from now on invoices can be sent to the public sector only as e-invoices. In total there were more than 25 legal acts that entered into force from the beginning of July.
Only e-invoices can be sent to the public sector from now on
On 1 July, amendment of the Accounting Act entered into force. According to the amendment companies and other legal entities can send invoices only as e-invoices to the public sector. Invoices sent on paper or electronically are no longer accepted.
The public sector unit to whom the e-invoices must be sent from 1 July is the state and state authority, local municipality unit and authority of a local municipality unit, another public legal entity and foundations, non-profit organizations and companies under the direct or indirect control of all of the above.
Alcohol excise duty to decrease by 25 percent
From 1 July, the excise duty on beer, cider, and light alcohol was decreased by 25 percent. As a result, the excise duty sum paid on 0.5 l beer (5% vol) will decrease by €0.1 and for a litre of vodka by €2.51. The main aim of the amendment was to decrease border trade on the southern border.
Period of limitation on certain claims to be extended
The limitation period for the claims ordered to be paid based on civil actions submitted within the framework of claims arising for illegal causing of damages and criminal proceedings will be extended from the current ten years to 20 years. A longer limitation period is applicable, for example for claims arising from the liability of a manufacturer, owner of a hazardous building or item. The aim of the amendment is to strengthen the rights of creditors.
A longer limitation period is applicable for rulings, in-court settlements or other enforcement documents that entered into force from 1 July 2019.
The limitation period for civil claims, such as claim for payment of the purchase price arising from a sales contract or a claim arising from a loan agreement is still ten years.
General Part of the Civil Code Act
Obtaining the list of entities who receive income tax incentives to become faster
Amendments to the Income Tax Act updating the principles for drawing up the list of non-profit organisations, foundations and religious associations who enjoy income tax incentives entered into force at the beginning of July. In the future, the tax administrator will update the abovementioned list of entities on the first date of each calendar month. At the moment the list of such entities is updated twice a year.
Income Tax Act
New restrictions on cigarettes and e-cigarettes
From 1 July prohibition on displaying tobacco products and related products, and prohibition on displaying trademarks in retail sales points entered into force. Furthermore, a requirement that the liquid for e-cigarettes may not contain flavourings, except tobacco flavour and scent, entered into force. Distance sales within Estonia of tobacco products and related products are also prohibited since July. This means that from now on it is not allowed to buy cigarettes or e-cigarettes and their liquids from e-shops.
Tax declaration with zeros no longer required
An amendment of the Income Tax Act entered into force on 1 June, according to which a company required to pay value added tax is not required to submit the TSD tax declaration if the company has not had any payments.
Income Tax Act
Should you have any questions regarding legal acts that entered into force on 1 July, please contact the lawyers of the Chamber by email juristid[at]koda.ee.