VATupdate

VAT rates in Estonia

 

Quick overview

Standard Rate Reduced Rate
20% 9%

The local name for VAT in Estonia is ”Käibemaks” (KM).

There are basically 2 VAT rates in Estonia:

  • Standard VAT rate is 20%
  • Reduced VAT rate is 9%

Recent developments

For more information about (recent) rate change developments in Estonia, please click here.

Standard rate: 20%

This rate applies for all transactions that take place in Estonia, unless an exception applies (such as a reduced rate, the zero rate or an exemption, or a reason to treat the transaction as outside scope of VAT).

Zero rate (0%)

No goods and services are subject to specific 0% VAT rate besides the typical ”Exemptions”.

Reduced rate: 9%

  • Medical equipment and products for handicapped people
  • Specified pharmaceutical products, contraceptive products and sanitary/toiletry products
  • Books and e-books (excluding textbooks and workbooks related to the national curriculum)
  • Periodicals and e-periodicals
  • Accommodation and accommodation services with breakfast, excluding any goods or services accompanying such services

For a description of how the VAT rates are structured in the European Union, please see here.  The European Commission has also made an EU VAT rate database available where you can find the applicable VAT rate by entering the CN/CPA code of the goods respectively services (you can find more information here).

A global VAT/GST rate overview can be found here (note this is a work in progress).

This post was last updated on 6 April 2021.

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