If your annual taxable turnover is below €40,000, VAT registration in Estonia is not obligatory.
If the annual taxable turnover of your company exceeds €40,000, you are required to register your company with the Estonian Tax and Customs Board as a VAT payer. With rare exceptions, the VAT rate is a flat 20%.
Keep in mind that if your company activity is fully outside of Estonia, it should not be VAT-liable in Estonia. You will, however, need to determine whether your company is VAT-liable in another jurisdiction.
Please review the Estonian Tax and Customs Board website for more details and, specifically, to understand cases where obligations may rise in a foreign country and you would not register for VAT liability in Estonia.
If you need help with VAT registration, most service providers in our Marketplace offer assistance.