- Estonia increased the standard VAT rate from 22% to 24% in July 2025, making it permanent.
- A new VAT return form was released on 1 July 2025, including boxes for 20%, 22%, and 24% transactions.
- The 20% rate, removed by January 2024, may still apply to certain transactions during a transitional phase.
- The VAT rate increase is part of measures to enhance Estonia’s defense capabilities.
- From January 2025, the VAT rate on accommodation services will rise from 9% to 13%.
- The VAT rate for press publications will increase from 5% to 9%, returning to the rate before August 2022.
- Special provisions allow businesses using the VAT cash accounting scheme to pay lower rates until December 31, 2026, under certain conditions.
Source: marosavat.com
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.
