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Public Other countries Author: Ema Stamenković
Estonia's government confirms a VAT rate increase, starting July 1, 2025, to stabilise public finances and address the country's growing budget deficit.
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Content accuracy validation date: 10.07.2025
Content accuracy validation time: 08:19h

A VAT rate increase that will go into effect on July 1, 2025, has been formally confirmed by the Estonian government.

The following adjustments will be made:

  • The standard VAT rate will rise from 22% to 24%.
  • The 9% lower rate will increase to 13%.
  • The 5% lower rate will rise to 9%.

Estonia is making these changes in an attempt to stabilize its public finances and deal with its widening budget deficit.

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