- Permanent VAT rate of 24%: The military emergency 1st July 2025 2 percent VAT increase from 22 percent to 24 percent will become permanent.
- Prime Minister Kristen Michal confirmed that this VAT hike, originally intended to be temporary until the end of 2028, will now be a permanent fixture in the tax system to address ongoing security needs.
- Tax System Changes: In addition to the VAT increase, the government plans to abolish the corporate profits tax and reduce personal income tax, with ongoing discussions regarding the long-term implications and adjustments to the overall tax structure.
Source: news.err.ee
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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