Case: VAT Registration and CFC Reporting for an Estonian Company. Full Turnkey Support

The owner of a manufacturing company producing and selling PVC structures—windows, doors, balcony units, and related products—approached KRYNO. To enter EU markets, the client registered a company in Estonia and began working with partners in the Baltic and Scandinavian countries.

The main sales markets became Estonia, Finland, and Latvia. The company operates in the B2B segment, supplying products to construction contractors, developers, and distributors.

After registering the company, the client faced several practical issues:

• obtaining a VAT number for full-fledged work with European counterparties;
• organising financial reporting in Estonia;
• preparing and filing CFC reporting in Ukraine as the controller of a foreign company.

It was critical for the client to build the process so that company management and reporting could be handled remotely, without the need for a permanent presence in Estonia.

What the project support included

E-Residency and VAT registration

At the first stage, we supported the client in obtaining an E-Residency card. This solution provided secure digital access to Estonian public services, enabled remote document signing, and allowed the company to be managed online.

After obtaining E-Residency, we:

• linked the digital identity to the company;
• prepared the document package for VAT registration;
• analysed the business model and the geography of counterparties;
• substantiated the need for voluntary VAT registration before the Estonian tax authority.

For the client, a VAT number was effectively a prerequisite for working with construction companies in the EU, as most counterparties work exclusively with VAT-registered businesses.

Organisation of financial reporting in Estonia

After obtaining the VAT number, we set up the company’s regular accounting and tax reporting.

The KRYNO team:

• organised the filing of monthly VAT returns;
• ensured correct classification of international transactions;
• set up remote interaction with the accountant through Estonia’s state portal;
• prepared and filed the company’s first Annual Report.

Because the company worked with several EU countries at once, we paid particular attention to the correct recording of transactions and compliance with Estonian law in order to minimise the risk of tax audits and penalties.

Preparation and filing of CFC reporting in Ukraine

Since the client is a resident of Ukraine and owns a foreign company, CFC reporting in Ukraine became a separate workstream.

We carried out a comprehensive analysis of:

• the ownership structure of the foreign company;
• the client’s controller status;
• the Estonian company’s financial statements;
• possible grounds for exemption of CFC profits from taxation;
• tax risks for an individual resident of Ukraine.

Following the analysis, our lawyers and tax specialists:

• prepared the controlled foreign company report;
• prepared the declaration of property status and income;
• filed the documents within the statutory deadlines in accordance with Ukrainian law.

The client received a fully managed process without having to communicate with the tax authorities independently or navigate complex international tax rules.