Blog - Accounting Resources

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VAT in Estonia Rises to 24% Starting July 1, 2025 – What Business Owners Need to Know

Accounting and taxation aren’t just back-office formalities — they’re essential tools for strategic business management. And when a country’s tax policy shifts, entrepreneurs need to adapt quickly and smartly. One of the most significant upcoming changes in Estonia is the VAT rate increase and the cancellation of a proposed “defense tax.” Here’s what’s changing, what’s not, and how to prepare.

Reverse Charge on Services in Estonia

Many entrepreneurs, particularly owners of small businesses, have questions about the reverse charge mechanism for services. This occurs when the obligation to calculate and pay VAT shifts from the seller to the buyer of the service. This article clearly explains how reverse charge for services works in Estonia and how to correctly report it in the KMD declaration.