If I'm already registered for VAT, can the registration be cancelled by tax authorities?
Estonian tax authorities control thoroughly zero-rated VAT returns. In practice, they have often started a tax audit in a situation where the company submits many consecutive zero tax returns.
The purpose of these audits is to find out, whether the company is engaged in actual business activities or makes preparations for it. If the Estonian Tax and Customs Board concludes that the company does not conduct business in Estonia, they may cancel the VAT registration.
During the tax audit, the company is generally required to submit a proof that it is engaged in actual business. It is advisable to prepare a short overview of the activities. We will be pleased to assist you in this matter.