A buyer in the United Kingdom orders goods from an Estonian company. The invoice says 0% VAT, but that line alone does not show where the goods went. For a goods export, the accounting file needs to connect the sale to physical movement out of the EU. A courier status, a customs declaration and a customer invoice may each tell only part of the story. The practical question is whether the records, read together, identify the same goods and establish their exit and transfer.
I am Dmitri Schmidt, a certified accountant and CEO of AccRes. In more than 15 years of Estonian accounting work, I have found that the safest month-end review starts with the route, not the customer's postal address. This guide follows a simple shipment from invoice to KMD and shows what to resolve when evidence arrives later. It concerns ordinary goods exported from Estonia; special customs procedures and services need separate treatment.
Establish the route before applying 0% VAT
EMTA explains that a qualifying export of goods is generally a zero-rated supply. The key fact is movement of the goods out of the EU, not merely a customer with a non-EU billing address. If stock stays in Estonia or moves only to another EU member state, do not label the sale an export just because the buyer is based abroad.
Before invoicing, identify who ships the goods, where they are handed over, who handles customs and which records the carrier will return. EMTA’s customs export guidance explains the export procedure and the need to check commodity codes and possible restrictions. A chain sale, goods installed abroad or a special customs arrangement can change the VAT analysis; map those facts before using this example.
The agreed delivery term helps assign operational tasks, but EMTA does not make a particular delivery term a separate condition for treating a proven sale as an export.
Build one evidence file for the sale and shipment
EMTA lists the customs export declaration, delivery notes, contract, invoice and transport documents as possible proof. Its list is open-ended: the file must demonstrate both taking the goods out of the Union and transferring them. Match the invoice number, goods description, quantities, consignee and shipment references across the available records. If a freight forwarder holds the customs paperwork, agree how the seller will receive it.
For example, an invoice for 40 unmarked equipment units worth EUR 4,800 can be paired with the purchase order, dispatch note for 40 units, carrier record and customs exit evidence. Store the documents under one transaction reference. A bank receipt proves payment; it does not by itself prove export. A tracking screenshot with no link to the invoiced goods is similarly weak on its own.
Ask for missing evidence while the carrier and buyer can still locate the shipment, rather than waiting until an audit request.
Put the export value in KMD fields 3 and 3.2
For the EUR 4,800 example, assume the goods are an ordinary taxable export and the evidence supports exit from the EU. EMTA says to declare the export value in fields 3 and 3.2 of KMD. The same EUR 4,800 appears in field 3 as total zero-rated supply and in its export breakdown, field 3.2. These are not two sales. The invoice carries 0% Estonian VAT, so it adds no output VAT from this sale.
Do not put this third-country export into the VD report for intra-Community supplies. If the seller is entitled to deduct input VAT on purchases used for the taxable export, a 0% sales rate does not by itself remove that deduction. Review the purchase evidence and ordinary deduction conditions separately.
| Record | Illustrative amount | Meaning |
|---|---|---|
| Customer invoice | EUR 4,800 + 0% VAT | Sale of the exported goods |
| KMD field 3 | EUR 4,800 | Total zero-rated supply |
| KMD field 3.2 | EUR 4,800 | Export component of field 3 |
| VD | No entry for this sale | VD covers relevant intra-EU supplies |
Reconcile the KMD figure with the final invoice and shipment, especially when an order is split into several consignments.
Resolve delayed or inconsistent evidence before filing
A customs document may reach accounting after the invoice. EMTA states that the timing of receiving a copy of the export declaration, the storage period in Estonia and the delivery term are not standalone extra conditions for export treatment. Still, the seller must be able to substantiate the sale. Record what is outstanding and obtain the carrier or customs records that close the gap.
If the invoice describes 40 units but the transport record shows 32, do not assume all 40 were exported. Check whether eight units remained in Estonia, left in a later shipment or were returned. Correct the invoice or the VAT period as the actual facts require. An unverified destination, a missing customs link or a buyer collecting goods without reliable movement evidence deserves individual review before a zero-rate conclusion.
Keep the decision and supporting documents together so the accountant can explain why the rate was used in that KMD period.
When a customer collects goods, I ask for evidence of the actual exit and transfer before treating the foreign address on the invoice as enough. The commercial agreement matters, but the shipment trail settles the VAT question.
For a standard goods export, first establish where the goods went, then match the sale to customs and transport evidence. The EUR 4,800 example belongs in KMD fields 3 and 3.2 once the export is supportable. Keep purchase-side input VAT and any special customs arrangement as separate questions.
If your company ships goods outside the EU, send a sample invoice, dispatch record and available customs evidence through the AccRes contact form. We can check the document trail before the next KMD filing.