Preparing a KMD return

The KMD is the Estonian VAT return — the form every VAT-registered company files with EMTA (the Estonian Tax and Customs Board) for each period. In Arvello you don't fill it in; you generate it. The return is calculated from the sales and purchase documents already in your account, and your job is to review it rather than type it.

This page covers how that calculation works, how to trace any figure back to the documents behind it, and what happens once you approve.

Preparing a return

VAT returns live under Company Tax → VAT Returns: one row per month with its status, due date and net VAT amount, with a year selector for going further back.

How the figures are calculated

Each invoice line carries a tax code, and the tax code determines which KMD line the amount lands on — domestic 24% sales feed line 1, EU supplies feed line 3, input VAT feeds line 5, and so on. VAT is calculated and rounded per line, then aggregated, which keeps the return free of cent-level discrepancies. Amounts in foreign currencies are converted to euros.

Draft returns also keep themselves current: when an invoice changes, a bank transaction is reconciled or an expense is finalised, Arvello recalculates any draft return for the affected period in the background. A Recalculate button is there for the impatient.

Reviewing before submission

The detail view opens with a summary: output VAT (what you've charged), input VAT (what you can claim back), the net position — VAT to pay or a refund — and the filing deadline.

Below the summary, four tabs let you trace every figure:

• VAT Summary — output and input VAT broken down by category: domestic sales at each rate, EU services and goods, exports, exempt supply, and the VAT claimed on expenses.
• Invoice Details (KMD INF) — the invoice annex EMTA requires for Estonian business partners where the month's total exceeds €1,000 excluding VAT. Sales partners appear in Part A, purchase partners in Part B. Selecting a partner row expands it into the individual invoices behind the total — number, date, rate and amount — so a KMD figure is never more than a click away from its source documents.
• EC Sales List (Form VD) — intra-Community supplies of goods and services, listed by partner with country and VAT number.
• Review Checklist — automated checks over the whole period.

The review checklist

The checklist flags anything that would make the return wrong or incomplete:

• Unrecognised tax codes — invoice lines whose tax code Arvello doesn't recognise are excluded from the calculation entirely, so output VAT may be understated or input VAT left unclaimed. These appear as errors with a link to the affected documents.
• Unmatched bank transactions — unreconciled transactions in the period may hide undeclared income or unclaimed expenses.
• Missing receipts — expenses claiming VAT with no receipt attached; the VAT may not be claimable.
• EU invoices without a valid VAT number — sales to EU clients charged at the standard rate because no validated VAT number is on file.
• Draft expenses — purchase documents still in draft aren't counted; finalising them brings their input VAT into the return.
• Depreciation pending — if you have fixed assets, the month's depreciation run can be triggered straight from the checklist.
• Large refund — a refund out of proportion to your output VAT is flagged, since EMTA tends to look harder at those.

Approving — and what locks

Approve & Generate moves the return to Ready to Submit, generates the official XML and CSV files, and locks the period. From that point, invoices and expenses dated in the period can no longer be edited — Arvello will tell you "This period has a filed VAT return. Create an amendment to make changes."

A return moves through five statuses: Draft, Ready to Submit, Submitted, Accepted by EMTA, and Rejected. Once approved, the next step is filing it with EMTA; if the data changes later, see amending a return.