If the company provides services or sells goods outside Estonia, there is no sales tax. In addition, these taxes do not appear in the monthly reports of sales tax that are submitted to the Tax Department.
For example, the company acts as the trading non-resident company in the commercial transaction with the partner countries.
In the case when the owner of the Estonian company intends to implement the trading transactions, in which goods move from Europe to Ukraine or Russia, or vice versa, the owner should organize the work as follows:
1) The Estonian company buys goods from the European country (in this case, the price does not include VAT according to the EU legislation) Further, the Estonian company increases the price of goods and resells it to Ukraine. The income tax of the income that is received from the transactions will be charged at a rate of 0%.
Working capital required for the Estonian trading company can be loaned from the own offshore company. You can repay the loan out of profits received from the turnover of credit funds.
2) The Estonian company borrows from the offshore company trade credit at a certain price. Then it adds the extra charge to the price and resells to Ukraine. In this case, goods on consignment note can move directly from the offshore company to Ukraine. The Estonian company pays according to the trade credit after the sale of goods, or after a certain period according to the agreement of the parties. In addition, income tax is 0% as in the first case. If to perform the same organization, but vise versa - it means that the Estonian company buys goods in Ukraine, then it is necessary to take into consideration foreign exchange regulations in Ukraine. It is necessary to close the foreign trade contract, and that is why the delays in payments for goods from the Estonian company to the Ukrainian company must fulfill the requirements for the foreign trade on the territory of Ukraine.
Obviously, in the both cases, the Estonian company invoices without VAT (20%) and it can be easily proved that the turnover occurs outside Estonia.