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.
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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.
How to Pay Salaries and Taxes After Registering in the Estonian Employment Register
After registering an employee in Nola Accounting and either you or our accountant have entered this information into the Estonian Employment Register, it is important to properly organize the salary payment and tax process to avoid errors and penalties. Let’s go through the steps to do it correctly.
What to Consider When Paying Employee Salaries in 2025
Starting January 1, 2025, the income tax rate in Estonia will increase, directly impacting employees' December paychecks. Employees will receive less net salary than usual. Employers must account for this change to avoid surprises and maintain employee motivation.
Tax Changes in Estonia Starting from 2025: What Small and Medium Businesses Need to Know
Starting January 1, 2025, significant changes in taxation will come into effect in Estonia. These changes will impact various business sectors, making it crucial for company owners, especially those in small and medium businesses, to understand them properly to prepare accordingly and avoid potential difficulties. In this article, we will discuss the main changes related to Value Added Tax (VAT), income tax, and other important tax aspects.