New Estonian coalition government proposes a 2% standard VAT rate rise

28 April 2023

During April 2023, the new Estonian parliament proposed a rise in its VAT rates to improve the country's financial situation, as well as bolster national defence and green reforms in the country. If accepted, it will see the:

  • Standard VAT rate rise from 20% to 22% from 1 January 2024.
  • The VAT rate applied to accommodation services rising the reduced VAT rate of 9% to the standard rate of 22% from 1 January 2025.

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