Estonian tax authority seeks 425,000 euros from car importer

Estonia’s Tax and Customs Board is seeking 425,128.60 euros from JMV Motors, a company importing cars from the Czech Republic, after rejecting its claim to deduct the amount in input value-added tax, ERR reported.

JMV Motors claimed the deduction in its September 2025 VAT return. The amount arose from credit notes issued by Cuculus Nidum, which reduced an intra-Community acquisition by 2.1 million euros.

The Tax and Customs Board said in an official notice published Wednesday that it did not accept the reduction in the intra-Community acquisition or the corresponding reduction in VAT. JMV Motors must pay the 425,128.60 euros within 30 days.

The board declined to comment specifically to ERR. Pavel Prokopenko, its head of media relations, said the agency could not comment on individual companies or private persons because such information is protected by tax secrecy.

Business newspaper Äripäev reported that the Tax and Customs Board had identified concealed operations in Estonia by Czech company JMV Real Estate, involving JMV Motors. According to the report, JMV Motors had also included in its input VAT calculations a transaction that had not actually taken place between JMV Motors and Cuculus Nidum.

Äripäev reported that Cuculus Nidum had failed to submit a VAT return or demonstrate that it was engaged in business activity, and that the invoices it issued did not meet legal requirements.

According to the Tax and Customs Board, Cuculus Nidum was established in the interests of JMV Motors board member Jaak Laiksoo and former board member Virgo Veiman. The board says the Czech company is controlled by them and has no actual economic activity.

JMV Motors currently has no tax arrears. However, it has not submitted VAT returns since May or income and social tax returns since June.

Cuculus Nidum’s tax debt to the Estonian state is close to 1.3 million euros, of which slightly more than 725,000 euros has been disputed.