Estonia Localization SuiteApp – Version 1.9.4 Release Notes

Available Date: 2025-06-17
Release Date: 2025-06-23

Summary of Changes

This release includes critical updates in response to Estonia’s VAT rate change effective July 2025, enhancements to data privacy, and usability improvements for VAT reporting. It introduces support for KMD6, simplifies VAT report configuration, and ensures compatibility during the transition from 22% to 24% VAT.

Replacement of Personal ID Field with Encrypted PIN

Description

• The field [STA] Personal Identification Number (custentity_sta_personalid) is now deprecated and will be removed from employee records.

• It is replaced by [STA] EE Encrypted Personal Identification Number (custentity_sta_ee_encryptedpin).

Impact

• Users must now use the new encrypted field, which can be entered through the VAT Report interface.

Benefits

• Enhanced security and compliance with data protection standards (e.g., GDPR).

• Improved handling of personal data with encryption.

More information can be found here: Estonia VAT Report Personal Identification Number Encryption

VAT Reporting Changes

Support for New KMD6 VAT Report Format

Description

• The KMD6 VAT report version is now supported for reporting periods from July 2025 onward.

• KMD5 remains supported for reports from January to June 2025.

• KMD4 is no longer supported.

Impact

• The correct version (KMD5/KMD6) is automatically selected based on the reporting period.

Benefits

• Ensures continued compliance with Estonian tax authority requirements.

• Reduces manual user errors by removing the need to select the report version manually.

VAT Report Interface Enhancements

Description

• The VAT Report interface now displays the version number aligned with the actual KMD version in use (KMD5 or KMD6).

• Manual version selection is no longer required.

Impact

• The appropriate version is selected automatically based on the reporting period.

Benefits

• Simplifies the reporting process.

• Prevents reporting errors due to incorrect version selection.

New VAT Position 1.2

Description

• A new VAT Position value, 1.2, has been added to the VAT Position list (customlist_sta_ee_vat_positions).

• Tax codes can now be mapped to this position via the field custrecord_sta_ee_vat_tax_position.

Impact

• 22% VAT tax codes should be reassigned to VAT Position 1.2 to reflect transitional use of the old rate.

Benefits

• Allows correct classification of 22% VAT transactions for both KMD5 and KMD6 reports.

• Prepares the system for the VAT rate transition to 24%.

New Saved Search for Box 1.2

Description

• A new saved search has been added:
  [STA] EE VAT Report – Box 1.2 (customsearch_sta_ee_box_1_2).

• This saved search filters relevant transactions assigned to VAT Position 1.2.

Impact

• Used to determine which transactions flow into Box 1.2 of the VAT return when the 22% VAT rate is applicable.

Benefits

• Predefined configuration for Box 1.2 eliminates manual saved search creation.

• Ensures consistency in reporting.

Changes to Estonia Localization Settings

New Field

• A new configuration field has been added to Localization Settings:
  [STA] EE VAT Report Box 1.2.

Deprecated Fields
The following fields are no longer used in VAT return calculations:

• [STA] EE VAT Report Box 4 - Net Amount Multiplier Based on Standard VAT

• [STA] EE VAT Report Box 4 - Net Amount Multiplier Based on Standard VAT 1.1

• [STA] EE VAT Report Box 4 - Net Amount Multiplier Based on Reduced VAT

• [STA] EE VAT Report Box 4 - Net Amount Multiplier Based on Reduced VAT 2.1

• [STA] EE VAT Report Box 4 - Net Amount Multiplier Based on Reduced VAT 2.2

Impact

• User can now select a saved search to be used as source for VAT row 1.2.

• These values calculated previously using the deprecated fields are now determined automatically based on VAT position and selected KMD version.

Benefits

• Simplifies configuration and reduces maintenance.

• Improves reliability and consistency in VAT calculations.

Required User Actions

To ensure compliance and system readiness, users must:

• Update Estonia Localization Settings
  Select the saved search [STA] EE VAT Report – Box 1.2 in the new Box 1.2 field.
  If you need to use a custom saved search, make sure it is selected in box 1.2.

• Update Tax Codes

  • Reassign 22% VAT tax codes to VAT Position 1.2.

  • Create new 24% VAT tax codes and assign them to VAT Position 1.

• Update the Bundle (if unmanaged)

  • Go to the bundle record and manually click Update to apply version 1.9.4.

Backward Compatibility

Description

• In version 1.9.4, KMD5 reports will use VAT Position 1.2 (not Position 1) for Box 1 transactions. This ensures that 22% VAT transactions are still correctly reported under the older format.

Impact

• Ensures accurate reporting for historical VAT periods using the old 22% rate.

Benefits

• No need to maintain multiple setups for different VAT versions.

• Seamless transition between KMD5 and KMD6 formats.