On 12 June 2023, the Estonian Parliament (Riigikogu) passed Bill No. 225 SE, making partial amendments to the VAT Act.

The bill includes several measures, the main one being the increase in the VAT rate from 20% to 22% with effect from 1 January 2024.

It should be noted that contracts concluded before 1 May 2023 will continue to benefit from the current rate of 20%.

For more information, contact our experts.

Source: riigikogu.ee (in Estonian)