VAT increased to 24%: what you need to know?

From 1 July 2025, Estonia’s VAT rate increased from 22% to 24%. This affects almost all businesses selling goods or services. Here’s a simple overview of what it means for you – both in general as an entrepreneur and specifically on our FindMyAccountant platform.

What changes in our portal?

Accounting service requests and offers made through our platform also follow the new VAT rate.

➡ If you submitted a request before 30 June and received an offer with 22% VAT, but you decide to accept the service provider later or the invoice is issued after 1 July, then 24% VAT will apply.

Why?In Estonia, the applicable VAT rate is generally determined by the date the goods or services are delivered, not the date the offer or contract is signed. Therefore, even if the contract stated a price including 22% VAT, the service provider must apply 24% VAT from 1 July onwards.

If you have questions about this, feel free to consult an accountant. Through our platform, you can quickly find a specialist to advise you on correct invoicing and applying the new VAT rate.

What changes in general if you are a business owner?

If you are a VAT payer:

• All sales invoices must show the new 24% VAT rate (unless the sale took place before 1 July).

• Update price lists, quotations, and e-shop prices.

• Check your accounting software, POS systems, and invoice templates.

• Inform clients about price changes – especially if you have fixed-price contracts.

• Keep an eye on your cash flow: a higher VAT rate means lower net income if prices remain the same.

• Näiteks: Kui müüd eraisikutele ja hind on koos käibemaksuga, siis käibemaksutõus tähendab, et ilma hinnatõusuta väheneb sinu kasum.

  
  

  If you are not a VAT payer:

  
  

• This change does not directly affect your invoices – you do not add or show VAT.❗ However, your purchase prices (goods and services) may increase, as suppliers and partners will now charge 24% VAT. This means your costs may rise even if you do not charge VAT yourself.

💡 Review your pricing and margins critically – adjust if necessary so the VAT increase does not eat into your profits.

Want someone to review these changes with you?👉 On our portal, you can request free and anonymous quotes from accountants who will help you smoothly adjust your price lists and invoicing to the new VAT rate.

Submit your free request on FindMyAccountant and find the right partner for your needs.