Estonia: Increase in standard VAT rate effective July 1, 2025

Increase in standard VAT rate to 24%

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July 2, 2025

The Estonian standard value added tax (VAT) rate increased to 24% on July 1, 2025.

The right to apply the 20% tax rate established by subsections 46 (24) and (25) of the VAT Act was also repealed as of July 1, 2025.

In addition, note that the fall of the VAT rate back to 22% in January 2029 was repealed by the Act Amending the Simplified Business Income Taxation Act and the Income Tax and Repealing the Security Tax Act.

Read the June 2025 report prepared by the KPMG member firm in Estonia

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