Estonia: Reduced VAT on media outlets and excise duty on special-purpose diesel fuel

The VAT reduction aims to alleviate the effect on agricultural sector and oil shale mines

The VAT reduction aims to alleviate the effect on agricultural sector and oil shale mines

The VAT rate on media outlets will be reduced to 5% (from 9%) for both printed and digital media effective 1 August 2022—to support the availability of quality journalism in Estonia in the ongoing information war related to the war in Ukraine. The lower tax rate does not apply to publications consisting mainly of advertising material and those focused on video or music content.

The excise duty rate on diesel fuel carrying a fiscal marker (special-purpose diesel fuel) was reduced to the minimum rate permitted in the European Union, 21€ per 1,000 litres, from 1 June to 31 December 2022. The rate of 100€ per 1,000 litres will be reintroduced on 1 January 2023 and the rate will increase gradually as from May 2023 until it reaches the level of 133€ per 1,000 litres in May 2026.

The reduction aims to alleviate the effect on the agricultural sector and oil shale mines, which have seen a considerable increase in input costs due to high fuel prices. The reduction is expected to reduce the sales price of diesel fuel by 9.48 cents per litre (the excise duty and VAT), assuming that both wholesalers and retailers lower the price by an amount equal to the cut in the excise duty.

Read a June 2022 report prepared by the KPMG member firm in Estonia


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