Estonia Raising Standard VAT Rate to 24% by July 2025

The Estonian government confirmed that the standard VAT rate will increase from 22% to 24% starting July 2025.

In addition, starting January 1, 2025, here were the following changes to the Reduced VAT rates:
• Hotels and other accommodation services will see a rate increase from 9% to 13%.
• Printed publications will shift from a reduced 5% VAT to 9%.

What this means for US businesses
Companies operating in or trading with Estonia must prepare for these upcoming VAT changes. Finance and compliance teams should closely monitor transition rules, especially when supplying goods or have long-term contracts with Estonian vendors.

Ensuring correct VAT treatment during rate changes is essential for maintaining compliance and avoiding reporting issues. Please email vat@eurovat.com and we will be happy to answer your VAT questions.

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