| Update: | Compliance Alert – Increase of the standard VAT rate to 24% from July 1, 2025 |
| Date: | 2025-03-18 |
The Estonian government has announced an increase in the standard VAT rate from 22% to 24%, effective July 1, 2025.
This change is set to remain in place until December 31, 2028.
As part of the amendments, the transition period for contracts signed before May 1, 2023, with a 20% VAT rate will be shortened. If such contracts do not include provisions for price adjustments based on VAT changes, the 20% rate will only be applicable until June 30, 2025.