▸ Industry · ESTONIA

Estonian Company for E-commerce: OÜ Setup, EU VAT, OSS and IOSS

Companies selling across borders: VAT registration, marketplace compliance, and choosing the right jurisdiction for fulfilment. An international business on a proper foundation — not a patchwork of fixes bolted on for each market.

▸ Structure

Operating company in the core market + per-country EU VAT registration

▸ Banking

Multi-currency accounts, PSPs, marketplace payouts

▸ Compliance

OSS / IOSS, marketplace-facilitator rules

▸ Tax

VAT/GST per market, customs strategy

▸ Recommended services

▸ Related scenarios

Sub-verticals in E-commerce

Marketplace sellerAmazon · Etsy · eBay DTC brandShopify / direct-to-consumer Subscription modelRecurring physical / digital goods Cross-borderFulfilment across multiple markets B2B wholesaleTrade · distribution · supply

Why e-commerce sellers open an Estonian company

An Estonian private limited company (OÜ) gives an online store an EU legal entity, an EU VAT number and access to the One Stop Shop. A founder who holds Estonian e-Residency signs every filing online, so the company can be set up and run without a trip to Tallinn. Profit that stays in the company is not taxed; corporate income tax of 22% applies when profit is distributed (22/78 on the net amount).

It suits three kinds of seller best:

a store that sells to consumers in several EU countries and wants one VAT return for all of them;
a seller that ships from a warehouse inside the EU and needs an EU entity on the marketplace account;
a founder outside the EU who wants an EU contracting party for payment processors and marketplaces.

VAT for an Estonian e-commerce company: registration, 24% rate, OSS and IOSS

Estonian VAT number. Registration becomes mandatory once taxable supplies in Estonia exceed €40,000 in a calendar year. A company can register voluntarily before that, and an e-commerce OÜ usually does, because OSS and IOSS registration need the Estonian VAT number first. With the application the company shows that it does business in Estonia or is about to start. The standard rate is 24% (since 01.07.2025). The VAT return (KMD) is due by the 20th of the following month.

OSS for sales to consumers in other EU countries. While cross-border B2C sales of goods and e-services stay under €10,000 a year across the EU, the OÜ may charge Estonian VAT. Above that, each sale carries the VAT rate of the buyer's country, and the Union One Stop Shop lets the company declare all of it in one quarterly return to EMTA, due by the end of the month after the quarter.

IOSS for goods shipped from outside the EU. For consignments up to €150, IOSS lets the store charge the buyer's VAT at checkout and file one monthly return. An Estonian OÜ registers for IOSS itself; a seller from outside the EU would need an EU intermediary. Since 1 July 2026 the EU also charges a temporary €3 customs duty per item line on these parcels, see EU customs reform 2026. The full VAT mechanics are in EU OSS and IOSS for non-EU sellers.

Our tax desk files the returns: VAT and GST compliance in Estonia.

What it costs to run an Estonian e-commerce company

The costs fall into three groups. Keep them apart when you compare offers.

State fees. Registering the OÜ in the e-Business Register costs €265 in the expedited procedure (usually reviewed within one business day) or €200 in the regular one (RIK, state fees from 01.01.2022). The minimum share capital is €0.01.
Running costs. Monthly bookkeeping, the KMD return, the quarterly OSS return and, where used, the monthly IOSS return; the annual report to the Business Register; a legal address and a contact person in Estonia when the board sits abroad.
INNOVA's work. We quote a fixed fee after a short scoping call, once we know your sales channels, countries and volumes. The setup cost of the whole route is estimated in the setup cost calculator.

Order fulfilment from Estonia

Where the goods sit decides the VAT route. Stock held in an Estonian warehouse and shipped to consumers in other EU countries is an intra-EU distance sale under OSS. Stock imported from outside the EU in parcels up to €150 goes through IOSS. Fulfilment, 3PL contracts and cross-border logistics are covered on a separate page: cross-border e-commerce and order fulfilment from Estonia.

Setting up an Estonian company for e-commerce in five steps

Digital identity. Get e-Residency (or use an Estonian ID card) to sign documents in the e-Business Register.
Address and contact person. Arrange a legal address in Estonia and, if the board will sit abroad, a contact person in Estonia.
Register the OÜ in the e-Business Register, pay the state fee and pay in the share capital. Step-by-step detail: Estonia OÜ registration.
Account and payments. Open a business account and connect the payment processor and marketplaces. Bank options: Estonia corporate banking.
VAT. Register for Estonian VAT, then for OSS and, if you import, IOSS. Set the store's tax settings by destination country before the first EU sale.

Questions about an Estonian company for e-commerce

Do I need to live in Estonia? No residence is needed. e-Residency lets a non-resident sign the registration and the returns online. When the board is abroad, the company names a contact person in Estonia.

Is an Estonian OÜ worth it below €10,000 of EU sales? Often yes, if you sell through EU marketplaces or payment processors that require an EU entity. Below the threshold the OÜ may charge Estonian VAT on cross-border B2C sales.

What does an Estonian company for e-commerce cost? The state fee is €265 (expedited) or €200 (regular). Bookkeeping and VAT filings are a monthly running cost. Our fee is fixed after scoping.

Can the OÜ sell on Amazon EU and Shopify? Yes. Both work with an EU entity, an EU VAT number and an account in the company's name. Marketplaces may collect VAT themselves on some sales; check each platform's terms before you set prices.

Start with the Estonia hub or book a scoping call.