Estonia: Tax measures and proposals

Measures in the legislation include value added tax (VAT) and excise tax

Measures in the legislation include value added tax (VAT) and excise tax

The Estonian Parliament (Riigikogu) passed legislation that includes value added tax (VAT) and excise tax measures.

Measures in the legislation:

  • Extend the application of reduced excise tax (duties) for another year, so that the current rates would apply through 30 April 2023
  • Increase the excise tax on fuel and electricity gradually to its pre-COVID-19 level over a four-year period, effective 1 May 2023
  • Impose a zero rate of tax for certain exports and imports of goods
  • Provide special rules for packages covered by the deposit refund system, sales of second-hand goods, original works of art, and collectibles and antiques

Proposed tax measures

A bill proposes to repeal the current tax treatment of housing loan interest. Another proposed measure would affect pension plan distributions.

Read a November 2021 report prepared by the KPMG member firm in Estonia


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