How vat / sales tax works in Estonia
Estonian VAT defaults to 24% since July 2025, with 13% on food, restaurants, and hotels and 9% on books, press, and medicines.
Traders register past EUR 40,000 of turnover, file monthly electronic returns, and issue e-invoices on buyer request under 2025 accounting reform.
Exports zero-rate, financial, health, and education supplies are largely exempt, and EU distance sellers route through OSS.
Tax rates at a glance
- Standard VAT
- 24%
- Reduced VAT
- 13% / 9%
- Food and stays
- 13%
- Books and medicines
- 9%
- Exports
- 0%
- Registration line
- EUR 40,000
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
E-commerce sellersSaaS foundersFreelancersExpatsHospitality operators
Watch out for
- The 2025 lift from 22% to 24% still hides in templates and contracts, so recurring figures need revalidation, not reuse.
- Restaurant alcohol at 24% against food at 13% and stays at 13% splits hospitality billing three ways.
- E-invoice-on-request duties mean sellers must be able to issue European-standard documents whenever qualifying buyers ask.
- Exempt finance and health supplies block input recovery, repricing mixed contracting against taxable competitors.
Frequently asked questions
What is the VAT rate in Estonia?
Estonia applies 24% standard VAT in 2026, raised in July 2025, with 13% for food, restaurants, and hotels and 9% for books and medicines.
When must an Estonian business register for VAT?
Past EUR 40,000 of taxable turnover, with monthly electronic filing. Voluntary registration suits input-heavy starters.
Is e-invoicing mandatory in Estonia?
Sellers must issue e-invoices on request from qualifying buyers under 2025 reform, using the European standard where no format is agreed.