VAT Declaration Requirements to Change from 2027

In Brief

The Minister of Finance has approved the new data structure for VAT declarations and related reports. This regulation applies to tax periods starting from 1 January 2027 and simultaneously repeals the previous acts on KMD, VD, and VDP forms.

What Happened

The Minister of Finance adopted Regulation No. 19 on 28 September 2026, titled “Käibedeklaratsiooni andmekoosseis.” It is issued under § 27(1) of the Value-Added Tax Act and sets out the data elements relevant for VAT reporting.

The regulation establishes four elements:

• KMD: the main VAT declaration form.
• KMD INF: information on issued and received invoices.
• VD: report on intra-EU turnover.
• VDP: report on changes in intra-EU turnover data.

The full text of the regulation is available in Riigi Teataja.

Note: Adopting the new regulation itself does not confirm any new declaration lines, new operation codes, or a new data exchange format with Maksu- ja Tolliamet.

What This Means for Businesses and Accounting

For companies registered as VAT payers, this primarily changes the regulatory framework for reporting. In practice, KMD, KMD INF, VD, and VDP are linked to accounting, invoice data, and transactions with partners from other EU countries.

Before the new rules apply, it is wise to include this topic in your accounting preparation plan for 2026–2027. There is no need to change processes immediately: the specific technical and content requirements should be reviewed based on published forms and official clarifications when they become available.

What to Check in Advance

1. Consult your accountant or accounting system provider on how new forms KMD, KMD INF, VD, and VDP will be tracked.
2. Verify who in the company is responsible for complete sales, purchase, and intra-EU transaction data.
3. Ensure primary documents and partner data are stored consistently and match accounting records.
4. If an external accounting firm is used, clarify who manages software updates and reporting settings.
5. Companies with intra-EU supplies or acquisitions need separate controls for preparing VD and, if needed, VDP data.

Important! The new data structure does not automatically apply to all past transactions but applies to tax periods starting from 1 January 2027. The period and the nature of the operation are crucial for determining reporting obligations.

Who Is Affected

This change directly concerns the following groups:

• VAT payers in Estonia: companies and entrepreneurs submitting KMD and KMD INF.
• OÜ owners and board members: those responsible for organizing accounting and timely company reporting.
• E-residents and non-resident founders: if their Estonian company is registered as a VAT payer, the company’s reporting obligations are unaffected by the owner’s citizenship or residence.
• Employers and companies with internal turnover: as far as they are VAT payers submitting KMD.
• Cross-border companies: participants in intra-EU transactions who need VD and possibly VDP reports.
• Accounting service providers and software vendors: who will need to track official forms and ensure clients’ data is correctly prepared.

This change does not mean every Estonian company must submit all four forms. For example, VD and VDP relate to intra-EU turnover and their submission depends on the company’s transactions and applicable rules.

Important Dates and Deadlines

It remains unconfirmed if there will be a separate transition period, additional technical documentation, or specific clarifications for software users before this date. Stay updated via official publications.

Frequently Asked Questions

• Must all companies submit KMD INF? The obligation depends on VAT rules and the company’s activities; the regulation itself does not specify requirements for every case.
• Does the change affect e-residents? Yes, if an e-resident owns or manages an Estonian company registered for VAT. The reporting obligation is the company's, not based on owner status.
• Are specific fields of the declaration changing? This cannot be assumed from the regulation: it confirms the annex names but does not describe particular fields or codes.
• From which period is the new structure applied? For tax periods starting from 1 January 2027.
• Should accounting software be changed now? Immediate reconfiguration is not required. It is practical to ask the software provider about support plans for 2027 forms once official technical details are released.

Conclusion

From 1 January 2027, VAT reporting will be governed by Regulation No. 19, which covers KMD, KMD INF, VD, and VDP. VAT payers should allocate responsibility for monitoring updates in advance and review the readiness of their accounting processes. Specific changes to form fields and reporting procedures should be confirmed through official materials, not assumed in advance.

Sources

• Käibedeklaratsiooni andmekoosseis

Article Author

Evgeniy Mialik

Business consultant, working in this field since 2011. I help entrepreneurs with company registration and administration, powers of attorney, accounting and tax returns. In my articles I write about the issues my clients face and share useful news for business owners in Estonia.