Estonia Parliament Considers Two Bills to Reduce Certain VAT Rates

The Estonian Parliament (Riigikogu) March 12 accepted for consideration Bill Nos. 596 SE and 593 SE, to reduce certain VAT rates. The bills include measures to: 1) reduce the general VAT rate to 20 percent from 22 percent, keeping the reduced VAT rates of 9 percent and 5 percent on certain goods and services unchanged; and 2) reduce the VAT rate to 5 percent from 22 percent, on potatoes, fruits and vegetables. Bill number 596 SE, which reduces the general VAT rate, will enter into force Jan. 1, 2026. [Estonia, Parliament, 03/12/25]

Reference:
View Explanatory Memo of Bill No. 596 ...