In recent years, Estonia has revamped its tax system to achieve a balanced budget and enhance tax efficiency. Starting in 2024, the standard VAT rate will rise from 20% to 22%, and from 2025, the VAT rate for press publications will also increase from 5% to 9%. These changes are driven by the Estonian government’s goal of boosting budget revenues to address the country’s needs.
Prime Minister Kaja Kallas stressed the importance of these changes, describing them as vital for national security. The decision aligns with Estonia’s aim to allocate 3% of GDP to defense. Additionally, it’s worth noting that while most of the increased tax revenue will go to the central budget, 12% of income tax will be directed to local authorities based on taxpayer registration.
Given these significant VAT and tax system alterations in Estonia, many are curious about how these decisions will impact the economy and the daily lives of citizens. We invite you to explore our article, where we summarize key information and analyze the implications of these decisions for the country.
Source: eurofiscalis.com
