Käibemaks regimes — standard rate 24% from 1 July 2025

Käibemaks (Estonian VAT) underwent two successive hikes linked to defence-funding after the Russian invasion of Ukraine. The standard rate moved from 20% to 22% on 1 January 2024 and from 22% to 24% on 1 July 2025. Three additional rates apply: 9% (reduced — medicines / books / accommodation / periodicals), 5% (super-reduced — written press since 2025), and 0% (exports, intra-EU supplies).

History — from 18% in 1994 to 24% in 2025

Independent in 1991, Estonia introduced VAT in 1994 on the OECD model — standard rate 18%, reduced 5%. EU accession in 2004 enforced alignment with EU VAT Directive 2006/112/EC. The 2009 crisis triggered an emergency hike to 20%. The Russian invasion of Ukraine then drove two further hikes: 22% on 1 January 2024 and 24% on 1 July 2025 — voted explicitly as a contribution to defence funding.

text kaibemaks-timeline.txt

1991       | Estonia regains independence. VAT introduced on the OECD model.
           |
1994       | Käibemaksuseadus — standard rate 18%, reduced 5%.
           |
2000       | Standard 18% maintained, pre-EU harmonisation.
           |
2004       | EU accession 1 May — alignment with VAT Directive 2006/112/EC.
           | Standard 18%, reduced 5%.
           |
2009       | Emergency hike to 20% standard (18 -> 20) after the financial
           | crisis.
           |
2017       | Reduced rate becomes 9% (medicines, books, accommodation,
           | periodicals) replacing the historical 5%.
           |
2024-01-01 | Standard rate raised to 22% (from 20%) — the "anti-defence"
           | hike voted by Riigikogu in 2023, linked to national-defence
           | funding after the Ukraine invasion.
           |
2025-01-01 | New super-reduced 5% rate introduced for written press.
           |
2025-07-01 | Programmed: standard rate raised to 24%. Pre-announced when
           | the Reform-Eesti 200-SDE coalition formed.
           |
2026-2027  | Riigikogu debates a stabilisation at 24% or a partial return
           | to 22%, depending on budget conditions.

Governance — EMTA + Rahandusministeerium

Käibemaks is administered by EMTA (Maksu- ja Tolliamet — Estonian Tax and Customs Board). Legislation is owned by Rahandusministeerium (Ministry of Finance) and voted in the Riigikogu (Parliament). Any rate change is published in Riigi Teataja with a soft 6-month notice — convention rather than statute.

Applicable rates and scope

Here is the grid in force as of 15 June 2026:

text kaibemaks-rates-2026.txt

# Käibemaks (Estonian VAT) rates — 2026

| Rate     | Code  | Applicable period           | Scope                                                       |
|----------|-------|----------------------------|-------------------------------------------------------------|
| Standard | 22%   | 1 Jan 2024 - 30 Jun 2025   | Goods and services by default                               |
| Standard | 24%   | 1 Jul 2025 - in force      | Goods and services by default (new standard rate)           |
| Reduced  | 9%    | since 1 Jan 2017           | Medicines, books, accommodation, periodicals                |
| Super    | 5%    | since 1 Jan 2025           | Written press (newspapers + magazines)                      |
| Zero     | 0%    | since 2004                 | Exports, intra-EU supplies, certain EU services             |
| Exempt   | NA    | since 1994                 | Health, education, financial services, gambling             |

Note: the 22% VAT code is still used on old invoices (before 1 July 2025).
        The 24% code applies from 1 July 2025 onward.

VAT comparison — EU 27

Country	Standard	Reduced	Super-reduced	Registration threshold
Hungary	27%	18 / 5%	—	EUR 0
Croatia	25%	13 / 5%	—	EUR 40,000
Sweden	25%	12 / 6%	—	EUR 0
Denmark	25%	—	—	DKK 50,000
Estonia	24%	9%	5%	EUR 40,000
Finland	25.5%	14 / 10%	—	EUR 15,000
France	20%	10 / 5.5%	2.1%	EUR 85,800
Germany	19%	7%	—	EUR 22,000

Adoption — EUR 40,000 threshold and SMEs

~140,000 VAT-registered businesses in Estonia in 2024 (EMTA + Statistikaamet).
EUR 40,000 threshold of net turnover over 12 rolling months — above it, VAT registration is mandatory.
Many FIE (Füüsilisest isikust ettevõtja — sole traders) operate below threshold and do not charge VAT.
~25,000 e-residents own a VAT-registered OÜ (e-Residency programme records).
~98% electronic KMD filings via eMTA, of which ~95% pre-filled thanks to KMD INF + X-Road integration.

Common pitfalls

Confusing 22% and 24%. For invoices during the 2025 transition, check the issuance date. Merit / Standard Books vendors apply the right grid automatically, but manual CSV imports are error-prone.
Confusing 9% and 5%. Paper books are at 9%, periodicals also since 2017 — but written press moved to 5% in 2025. Books remain at 9%.
Forgetting the EUR 40,000 threshold. A FIE that crosses EUR 40,000 mid-year must register within 3 days. EMTA cross-checks via X-Road against bank-feed journals.
Thinking e-Residency = exemption. An e-Residency OÜ is a fully-fledged Estonian company: the EUR 40,000 threshold, KMD INF and Käibemaks apply just like for residents.
Wrong intra-EU declaration. The 0% rate on intra-EU supplies is only valid if the buyer supplies a valid VATIN (verifiable in VIES) — otherwise Estonian VAT applies at the standard rate.

Foundations

Standards

Flagship messages

Tools