The Estonian Tax and Customs Board clarifies that income obtained through various platforms, including home cafés, must be declared as business income if it is regular and intended for profit.
In a recent broadcast of the KUKU show "Sihik", Aune Maria Marjapuu, a leading specialist at the Estonian Tax and Customs Board, highlighted the importance of declaring additional income, regardless of how insignificant it may seem. She explained that many Estonians earn money through various platforms, such as Bolt, Wolt, Fudy, Facebook Marketplace, or OnlyFans, and all earnings from these platforms are required to be declared in tax submissions. The discussion aims to clarify misconceptions about additional income and the responsibilities associated with it.
Marjapuu elaborated on the criteria that define whether an activity is considered business or merely incidental income. According to her, entrepreneurship begins when an individual consistently earns income with the intention of generating profit. If someone engages in a particular activity on a daily basis and aims for continuous income flow, it transcends the realm of occasional earnings and must be reported as business income on their tax declaration. This distinction is crucial for many individuals who may experiment with monetizing their hobbies or talents.
In discussing home cafés, Marjapuu agreed that if these establishments operate regularly and generate income, they must be classified as businesses. This insight serves as a reminder to many aspiring entrepreneurs in Estonia to understand their obligations under tax law and properly report their income to avoid future complications with the Tax Office. The conversation reflects a broader effort to help individuals navigate the complexities of taxation in an evolving economy.
