What Happens if I Have a Business Expense but Don’t Receive the Invoice Until Later?
It may happen that your company buys something and does not receive your invoice later. But what can you do if it's quite a long time, like a month or two?
Ideally, this should not happen and you should avoid doing business or buying from these types of providers. A supplier must issue an invoice shortly after you make the payment.
However, if it is something punctual, it is not a serious problem.
The Estonian Tax Office says that if the expense document (which meets the requirements of § 37 of the VAT Law) is submitted to the business name for taxable turnover, the VAT paid as input VAT can be deducted from the VAT invoice for the month in which it is received/posted. The same with receipts without VAT.
In other words, nothing happens if it is something sporadic, but your company must pay the VAT on the invoice in advance and cannot recover it until the corresponding invoice is submitted.
Ideally, this should not happen and you should avoid doing business or buying from these types of providers. A supplier must issue an invoice shortly after you make the payment.
However, if it is something punctual, it is not a serious problem.
The Estonian Tax Office says that if the expense document (which meets the requirements of § 37 of the VAT Law) is submitted to the business name for taxable turnover, the VAT paid as input VAT can be deducted from the VAT invoice for the month in which it is received/posted. The same with receipts without VAT.
In other words, nothing happens if it is something sporadic, but your company must pay the VAT on the invoice in advance and cannot recover it until the corresponding invoice is submitted.
Updated on: 10/08/2022
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