The Estonian government has announced changes to its value-added tax (VAT) structure as part of its broader fiscal strategy.
VAT adjustments
Starting 1 July 2025, the standard VAT rate will increase from 22% to 24%. This higher rate will be a temporary measure, remaining in effect until 31 December 2028, after which the rate will revert to 22% on 1 January 2029.
Additionally, adjustments will affect the hospitality sector. From January 2025, the VAT rate for accommodation services, including those that offer breakfast, will rise from 9% to 13%. It is also worth noting that another change will be the increase in the VAT rate for press publications, which will change from 5% to 9%.
These measures aim to balance fiscal needs while supporting public services and national security efforts. Businesses and consumers should prepare for these adjustments to effectively manage their finances.
Sources:
– https://www.fin.ee/uudised/ettevotted-panustavad-julgeolekusse-kasumimaksuga
– https://www.emta.ee/en/business-client/taxes-and-payment/value-added-tax#from-01012025
