Accounting in Estonia is done on a monthly basis, especially if you have a VAT number. That means you must upload all purchase and sale invoices of one month to our dashboard before the 5th of the following month so that we can process them correctly.
However, sometimes it can happen that your company buys something and does not receive an invoice until some time later. What should you do if it becomes a significant amount of time, such as one or two months?
Ideally, this should not happen, and you should avoid doing business or buying from this type of providers. A provider should issue an invoice short after paying the expese.
However, if this situation occurs occasionally, it is not so problematic. This is the official position of the Estonian Tax Office:
If the expense document (which meets the requirements of § 37 of the VAT Act) is submitted to the business name for taxable turnover, the VAT paid as input VAT can be deducted from the VAT invoiced for the month in which it is received / posted . The same with receipts without VAT.
In other words, it is fine if it happens occasionally, but your company must pay VAT on the invoice beforehand and cannot recover it until the corresponding invoice is submitted.