In force 💡 FYI Rate change

Estonia raises its standard VAT rate from 22% to 24% from 1 July 2025 under the Security Tax Act

This page records one dated change. For the rules in Estonia as they stand today, see the Estonia guide →

Jurisdiction: Estonia
Tax: VAT
Change type: Rate change
Status: In force
Impact: FYI
Announced: 2 January 2025
Effective: 1 July 2025
Instrument: EE-ACT-RT-I-02-01-2025-2
Authority: Eesti Maksu- ja Tolliamet (Estonian Tax and Customs Board)
Verified: Fetched from official source · high confidence

Who this affects

All VAT-registered businesses in Estonia making supplies at the standard rate, including those still invoicing at 20% under pre-1 May 2023 contracts.

What to do

No action — monitoring only.

The change

Julgeolekumaksu seadus (Security Tax Act, bill 512 SE), adopted by the Riigikogu on 11 December 2024 and published in Riigi Teataja on 2 January 2025 (RT I, 02.01.2025, 2), § 21: Estonia's standard VAT rate rose from 22% to 24% from 1 July 2025, and the right to keep applying 20% under pre-1 May 2023 written contracts was shortened from 31 December 2025 to 30 June 2025. The Act also scheduled a return to 22% on 1 January 2029, but it was repealed by RT I, 08.07.2025, 1 (in force 18 July 2025) before that provision took effect, so the 24% rate has no end date.

What changed in detail

The Julgeolekumaksu seadus (Security Tax Act, bill 512 SE) was adopted by the Riigikogu on 11 December 2024, proclaimed by the President on 18 December 2024 (decision no. 506) and published in Riigi Teataja on 2 January 2025 as RT I, 02.01.2025, 2. Its § 21 amends the VAT Act, and § 23(2) put points 1, 3 and 5 of § 21 in force on 1 July 2025:

Point 1 replaces “22” with “24” in § 15(1): the standard VAT rate became 24%.
Point 3 makes the matching change in § 27(1²).
Point 5 shortens both § 46(24)–(25) transitions to 30 June 2025 instead of 31 December 2025: the cash-basis taxpayer’s right to pay 20% on supplies made before 1 January 2024, and the right to keep charging 20% under a written contract concluded before 1 May 2023 with no clause adjusting the price for a VAT change.

Points 2 and 4 of § 21 would have put the rate back to 22% on 1 January 2029 (§ 23(3)). They never took effect. The Act amending the Simplified Business Income Taxation Act and the Income Tax Act and repealing the Security Tax Act, adopted on 18 June 2025 and published as RT I, 08.07.2025, 1, repealed the Security Tax Act by its § 2, in force on 18 July 2025.

What it means

The 24% rate is in force and has no end date. The scheduled return to 22% on 1 January 2029 was part of the Security Tax Act, and that Act was repealed in July 2025 before the 2029 provisions started, so it will not happen. The consolidated VAT Act (RT I, 30.06.2026, 129) shows 24% in § 15(1), sourced to RT I, 02.01.2025, 2.

This record replaces the 22% position of 2024 (Estonia raises VAT to 22%). Systems or contracts that still assume a 2029 drop to 22% need correcting. Contracts that relied on the 20% transition lost it on 30 June 2025, six months earlier than first legislated.