Supply of enterprises

Short-term statistics on the supply of enterprises are published again by Statistics Estonia since the end of 2022. The interactive charts provide an overview of the situation of enterprises on the basis of VAT returns. The statistics cover companies liable to VAT and self-employed persons who have submitted a VAT return.

There have been some methodological changes compared to the 2020 version.

The chart shows the monthly supply (sum and median) of enterprises based on VAT returns (form KMD), starting from 2019.

Median is the middle value, with 50% of enterprises having a supply smaller than this and 50% of enterprises having a supply bigger than this.

 

The chart outlines the change in the supply of enterprises compared with the same period of the year before. Both monthly change in supply and moving average (i.e. average change over the last three months) are shown. In order to better assess enterprises’ performance in times of rising inflation, the chart also includes the change in costs. The latter indicator is from another statistical activity, “Financial statistics of enterprises (quarterly)”, which provides quarterly data available here.

The change is calculated as follows:

(supply in the current year – supply in the previous year) / supply in the previous year × 100%

 

 

Economic activity

The chart shows the monthly VAT-based supply by the main activity of the enterprise.

The chart outlines the relative percentage change in monthly supply by economic activity since January 2020, compared with the corresponding month of the previous year.

The chart shows the relative change in monthly supply by economic activity on a more detailed level (two-digit EMTAK codes, which are the national version of the international harmonised NACE classification). The indicator is calculated as a moving average – the relative change in the sum of the reference month plus two preceding months, compared with the corresponding period of the previous year. The chart uses red tones for a decrease and green tones for an increase in supply.

Number of employees in enterprises

The chart shows the VAT-based supply of enterprises by number of employees.

The chart presents the relative percentage change in monthly supply by enterprise size class since January 2020, compared with the same month of the previous year.

Municipalities

The charts show the VAT-based supply of enterprises at the municipal level. When interpreting the results, it should be kept in mind that enterprises have been assigned to municipalities on the basis of their registered address. Only enterprises whose location could be determined at this level were included. The place of business of an enterprise may differ from its registered address. The transactions of single enterprises or transactions in some specific economic activities may significantly influence the indicators (especially for small municipalities). Values that do not meet confidentiality requirements have been removed, and breaks may occur in the time series.

The chart outlines the VAT-based supply of enterprises by municipality.

 

The map shows the change in supply by municipality. The indicators for smaller municipalities can be significantly influenced by the input of single enterprises. To mitigate such influences, the map is based on the relative change in the sum of supply in the reference month and in two preceding months, compared with the corresponding period of the previous year.

 

Methodology

The charts are based on the VAT return (form KMD) data of the Tax and Customs Board. Persons liable to VAT submit the tax return by the 20th day of each month for the previous taxation period (month). Transactions and operations subject to VAT are declared on form KMD by tax rate.

Formula for calculating supply:             

          R1      Acts and transactions subject to tax at a rate of 20%

+            R2          Acts and transactions subject to tax at a rate of 9%

+            R2¹        Acts and transactions subject to tax at a rate of 5%

 

+            R3          Acts and transactions subject to tax at a rate of 0%

-             R6          Intra-Community acquisitions of goods and services received from a taxable person of another Member State, total

-             R7          Acquisition of other goods and services subject to VAT

+            R8          Supply exempt from tax

+            R9          Supply of immovables, scrap metal, precious metal and metal products subject to value added tax under the special arrangements (VAT Act § 41¹) and taxable value of goods to be installed or assembled in another Member State

(In the previous version of short-term statistics of enterprises, supply was calculated as the sum of rows 1, 2 and 3 of the form.)

Companies and self-employed persons liable to VAT are covered.

The size group based on the number of employees and the economic activity of the enterprise are determined on the basis of Statistics Estonia’s business register for statistical purposes (as in the year of supply).

The differences between the declared ‘VAT-based supply reported to the Tax and Customs Board and ‘turnover’ reported to Statistics Estonia are as follows:

• turnover does not include sold fixed assets;
• turnover does not include excise;
• turnover does not include prepayments;
• turnover assessment is also calculated for small enterprises which are not liable to VAT.

 

Labour costs of enterprises

Statistics Estonia publishes short-term statistics on the labour costs of enterprises on the basis of income and social tax declarations (form TSD, annexes 1, 2 and 4). The statistics cover companies and self-employed persons who have made taxable payments to natural persons.

The chart shows total labour costs and labour costs per employee.

The chart shows labour costs per employee by economic activity starting from January 2019.

In order to assess the role of labour costs, the chart also indicates the share of labour costs in total costs in a given economic activity. The latter data are obtained from another source: statistical activity “Financial statistics of enterprises (quarterly)” which provides quarterly data available here.

 

Comparison of supply and labour costs

The chart compares the change in supply and the change in labour costs starting from January 2020. The y-axis represents relative change in labour costs per employee and the x-axis represents relative change in supply per employee in the reference month, year on year.

When assessing the correlations, it should be kept in mind that, in the declaration, enterprises report supply on accrual basis, but labour costs are shown by payment month. Monthly disbursements usually include the wages and salaries for the previous month. Therefore, changes in labour costs become evident with about a month’s delay in contrast to changes in VAT-based supply.

 

 

Methodology

Labour costs are calculated on the basis of the declarations of income and social tax, unemployment insurance premiums and contributions to mandatory funded pension (form TSD). Form TSD is completed by legal and natural persons and submitted to the Tax and Customs Board by the 10th day of each month, covering taxable disbursements made in the previous calendar month.

The charts show the data of companies and self-employed persons who have made taxable disbursements.

Data of annexes 1, 2 and 4 of form TSD have been used.

Annex 1 of form TSD. Payments made to resident natural persons, withheld income tax, contributions to mandatory funded pension and unemployment insurance premiums, and calculated social tax and employer’s unemployment insurance premiums.

Annex 2 of form TSD. Payments made to non-resident natural and legal persons, withheld income tax and unemployment insurance premiums, and calculated social tax and employer’s unemployment insurance premiums.

Annex 4 of form TSD. Fringe benefits.

 

Methodology

Labour costs are calculated on the basis of the declarations of income and social tax, unemployment insurance premiums and contributions to mandatory funded pension (form TSD). Form TSD is completed by legal and natural persons and submitted to the Tax and Customs Board by the 10th day of each month, covering taxable disbursements made in the previous calendar month.

The charts show the data of companies and self-employed persons who have made taxable disbursements.

Data of annexes 1, 2 and 4 of form TSD have been used.

Annex 1 of form TSD. Payments made to resident natural persons, withheld income tax, contributions to mandatory funded pension and unemployment insurance premiums, and calculated social tax and employer’s unemployment insurance premiums.

Annex 2 of form TSD. Payments made to non-resident natural and legal persons, withheld income tax and unemployment insurance premiums, and calculated social tax and employer’s unemployment insurance premiums.

Annex 4 of form TSD. Fringe benefits.

 

Labour cost components:

• Wages and salaries (payment types 10, 11, 12, 13, 15, 21, 22, 23, 70 in Annex 1 of form TSD; and payment types 120, 121, 122, 126, 127, 128, 144, 145, 146, 147, 148, 149, 156, 157, 270 in Annex 2 of form TSD).
• Remuneration paid under the Law of Obligations Act – payments made under a contract for services or an authorisation agreement in accordance with the Law of Obligations Act (payment types 17, 18, 19, 20 in Annex 1 of form TSD; and payment types 123, 124, 125 in Annex 2 of form TSD).
• Allowances and benefits paid by the employer – sickness benefits, benefits for occupational accidents and diseases, contributions to supplementary funded pension (pillar III), dismissal benefits, childbirth allowance paid by the employer (payment types 14, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 71, 72, 73, 74 in Annex 1 of form TSD; and payment types 129, 130, 131, 132, 133, 134, 135, 137, 138, 139, 140, 141, 142, 143, 158, 159, 271, 272, 273 in Annex 2 of form TSD).
• Fringe benefits paid by the employer – compensation of housing costs, insurance premiums, compensation of work-related use of private car, compensation of formal education costs, expenditure on employee’ health, and other fringe benefits.
• Social tax.
• Unemployment insurance premium paid by the employer.

When calculating labour costs per employee, persons who work for several enterprises at the same time have been included separately for each enterprise. The economic activity of the enterprise is determined on the basis of Statistics Estonia’s business register for statistical purposes (as in the year of payment).

The labour costs published in Statistics Estonia’s database (statistical activity 21103 “Labour costs”) differ from the labour costs reported in the declaration as follows:

• Payments reported in the declaration are cash-based, while for the statistical activity enterprises submit labour costs on accrual basis.

• In the declaration, it is not possible to indicate separately remuneration paid to members of the controlling body, which is not included in wages and salaries.
• In the statistical activity, remuneration paid under the Law of Obligations Act is not taken into account, as persons employed under Law of Obligations Act contracts are internationally considered to be self-employed. For better comparability, labour costs according to the declaration have also been calculated without contracts under the Law of Obligations Act.
• Declarations do not include the following major labour cost components: training costs, uniform and recruitment costs.