The advertising tax was established on 17 December 2009 by regulation no. 44 called the Advertising Tax in Tallinn (hereinafter, the regulation), which came into effect on 1 January 2010.
According to the regulation, the object of the taxation is the advertising that is displayed in Tallinn:
- in a public space, which is on a publicly used location or territory that is designated for free movement and use, or on a structure, or part thereof, which is located in the interior space of the structure or outside of the interior space and is directed at the public;
- On privately owned property or structures or is directed at the public outside from the interior space of a structure;
- On the exterior sides of city busses, trams, trolley-buses or taxis, or in their interior space and directed at the public outside, if the user of the means of transportation is a company which, according to the business register, is located in Tallinn, or a sole proprietor, whose enterprise is located in Tallinn, based on the data in the business register;
- On a mobile construction and directed at the public.
- As of 1 January 2017, the tax rate is EUR 0.55 per calendar day for each square metre of advertising space.
From 1 April 2020 to 30 September 2021, a tax rate based on a 1.5 differential, i.e. €0.825 per square metre of advertising space per calendar day, will apply to advertisements displayed on advertising carriers with multiple ads. As of 1 October 2021, a tax rate based on a 2.0 differential, i.e. €1.1, will apply. Advertising carriers with multiple ads include those (city lights, billboards, digital or LED screens, etc) on which either an ad with a moving image or alternating multiple ads are displayed.
If an outdoor advertising carrier with multiple ads intermittently displays taxable and non-taxable or tax-reduced advertising throughout a calendar day, the advertising tax shall be calculated using the differentiated tax rate imposed in section 5(5) of the regulation.
If an outdoor advertising carrier with multiple ads intermittently displays tax-reduced and non-taxable advertising throughout a calendar day, the advertising tax shall be calculated using the differentiated tax rate imposed in section 5(5) of the regulation, decreasing it according to the given reduction.
- A fivefold differentiated tax rate will apply to advertising that advertises a willingness to provide consumers with credit or loans and/or mediate contracts that prescribe a willingness to provide credit or credit at an annual percentage rate of more than 25% (inclusive) per year. If the advertising is being displayed on carrier that display multiple images, a fivefold differentiated tax rate will apply.
The direct holders of outdoor advertising mediums or holders of public transport permits or taxi permits are considered to be the persons responsible for the advertising tax.
The taxable periods are calendar weeks, calendar months, calendar quarters or calendar years.
In its first tax declaration of the calendar year, the taxable person shall choose the tax period of its choice.
The taxable period can be changed in the subsequent calendar year.
Submission of an advertising tax declaration
The advertising tax declaration is submitted to the Tax and Customs Board on the first working day of the taxation period at a service office, by using electronic data communication or by mail.
- Submission of tax declarations to the Tax and Customs Board as of 2020 (pdf)
- Submission of tax declarations to the Tax and Customs Board as of 2017 - 2019 (pdf)
- Submission of tax declarations to the Tax and Customs Board by filling out a paper form (pdf)
Sample video of filling the advertising tax return (NB! the sample was compiled in 2014, some of the design and content elements have expired)
Deadline for the payment of the tax
The deadline for the payment of the tax is the same as the deadline for submitting the tax declaration, i.e. the first working day of the calendar week, calendar month, calendar quarter or calendar year.
Under §15 (1) of the Local Taxes Act and in accordance with § 115 (1) of the Taxation Act, the taxable person shall be obliged to calculate and pay interest on any outstanding tax payment.
Interest shall be calculated from the day following that on which the tax was due, up to and including the day the tax is paid. Based on § 117 (1) of the Taxation Act the interest rate is 0.06% per day.
There are two tax authorities responsible for the Tallinn advertising tax
– the Tallinn Strategic Management Office and the Tax and Customs Board (MTA). The division of labour between the tax authorities has been established on 13 June 2013 by administrative contract no. 86. The advertising tax declaration should be submitted to and advertising tax paid to the MTA.
- The Tax and Customs Board bank accounts are listed on the website called the requirement for the payment of taxes; the payment order must include a personal reference number, which can be found by making a personal reference number search;
- The tax declarations should be submitted to the Tax and Customs Board
- The declaration must be submitted electronically if there are more than 10 advertising objects.
The Tax and Customs Board provides information about declaring advertising taxes
- by using e-maksuamet/e-toll
- by email: email@example.com
- by phone: 880 0815
The Tallinn Strategic Management Office provides advice on the advertising tax:
- by phone: 609 3300
- by email: firstname.lastname@example.org
- in Tallinn at Kaarli pst 1// Roosikrantsi 2, Tallinn
- on the website:
Also read more on the Tax and Customs board website: Tallinn Advertising Tax
On the same subject elsewhere on the internet:
Authorisation of the officials of the Tallinn City Taxation Department (04.01.2020 directive no. T-29-1/21/1)
Authorisation of the officials of the Tallinn City Taxation Department (10.01.2020 directive no. T-6-1/20/4)