- VAT Rate Increases: The standard VAT rate will rise to 24% from July 1, 2025, while the rates for accommodation services will increase from 9% to 13% and for press publications from 5% to 9% starting January 1, 2025.
- Special Scheme for Small Enterprises: Effective January 1, 2025, small enterprises with a turnover below €100,000 can benefit from an EU-wide tax exemption scheme, provided their turnover in Estonia does not exceed €40,000.
- Reverse Charge Obligation Changes: Taxable persons will not need to apply reverse charge for goods or services acquired from foreign businesses that have registered under the special scheme for small enterprises.
- Registration Threshold Adjustments: The VAT registration threshold will now only include supplies made in Estonia, and certain financial and insurance services will be counted unless incidental.
- Reporting and Compliance Updates: The report on intra-community supply will be included in the VAT return starting January 1, 2027, transitioning to data-based reporting to simplify compliance for taxpayers.
Source EY
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