As of July 1, 2025, Estonia’s VAT Rate Increased to 24%

As of July 1, 2025, Estonia’s value-added tax (VAT) has increased from 22% to 24%.

What does this mean for businesses?

• Higher tax burden, especially for low-margin sectors
• Financial losses possible for those who didn’t adjust systems in time
• E-commerce and service providers must review pricing and ensure all systems are updated

Who is affected?

• All registered VAT payers
• Small and medium-sized businesses
• Startups using simplified accounting

Our expert recommendations:

1. Update your accounting and POS software
2. Review all document templates (invoices, contracts, receipts)
3. Adjust your pricing strategy accordingly
4. Communicate clearly with partners and clients
5. Consult with a tax professional

“Tax changes are not a reason to panic, but an opportunity to optimize and improve your processes. We help clients prepare and avoid unnecessary stress.”

ProfBalance Team

Need help adapting?

We offer:

• System updates for the new 24% rate
• Personal consultations
• Templates for explaining the change to clients and partners

📩 Contact us - we’re here to help!