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Estonia: Increase in the standard rate of VAT

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On 11 December 2024, the Estonian government approved the introduction of a temporary security tax (in force until the end of 2028) to develop Estonia’s defence capabilities and security investments.

The temporary securities tax comprises three separate tax measures, one of which is the increase in the VAT rate by 2% from 22% to 24% with effect from 1 July 2025.

For more information on this subject or to find out whether a reduced rate applies to your operations, please contact our experts!

Source: Estonian Parliament (in Estonian)

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