VAT Rate Increase in Estonia by 2025
Estonia will increase the VAT rate applied to accommodation services and press publications. Also, the Estonian government is planning a new increase of the standard VAT rate from 22% to 24% by July 2025.
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Estonia will increase the VAT rate applied to accommodation services and press publications. Also, the Estonian government is planning a new increase of the standard VAT rate from 22% to 24% by July 2025.
The Accountings Act was amended aiming at expanding the use of e-invoices in Estonia by January 2025. The new rule sets that all companies registered as e-invoice receivers in the business register will have the right to require their suppliers to submit an electronic invoice.
Estonia reduced the VAT rate on specific press publications to 5%, instead of 9%. The change became effective on August 1st, 2022.
VAT rates on e-books have decreased widely since October 2018.
The Estonian government has sent to Parliament a proposal to increase the annual registration threshold from €16,000 to €40,000.
Estonia has joined the club of countries allowing the import VAT to be reported in the VAT return.
Where a service is supplied on a periodic basis and there are no prepayments made within those periods, the tax point occurs at the end of each calendar year.
Estonia has raised the VAT registration threshold for small businesses from 16,000€ to 25,000€ per year.