08.04.23

Upcoming VAT rate changes

Estonia has adopted the draft law to increase the standard VAT rate in the country from 20% to 22% from 1 January 2024.  

Estonia has also approved the following VAT rate changes, effective 1 January 2025:

• Accommodation VAT rate increase from 9% to 13% 
• VAT rate increase for press publications from 5% to 9% 

It is important to note that the 13% VAT rate approved for 1 January 2025 is a new VAT rate that does not currently exist in Estonia, with the 9% reduced VAT rate currently co-existing alongside the standard 20% VAT rate. 

Kofax will support the new VAT rate approved for 1 January 2025, but we will first turn our attention to supporting the new standard rate of 22% from 1 January 2024. 

Kofax will be in contact with impacted Estonian suppliers and buyers in Q3 with further details to facilitate the new VAT rate.