VAT rates and supply exempt from tax

According to the Value Added Tax Act, value added tax rates in Estonia are 24%, 13%, 9% and 0%. The supply of certain goods and services of a social nature is exempt from value added tax (VAT). Pursuant to the VAT Act, a taxable person has the option to add value added tax to the taxable value of goods and services exempt from tax, and the Estonian Tax and Customs Board must be notified of the addition of VAT in writing before the supply is effected.
From 1 July 2025, the standard rate of VAT is 24% in Estonia.

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Value Added Tax Act (VAT Act)Changes in the Estonian Value Added Tax Act

Handbook “Value added tax rates and supply exempt from tax”

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    Exempt supply

    The goods and services which supply is exempt from VAT are specified in § 16 of the Value Added Tax Act (VAT Act).

    Treatment of the transaction as exempt supply means that VAT shall not be added to the sales price of the goods or services and the taxpayer has no right to deduct input VAT of goods and services, acquired for exempt supply.

    If the whole supply of a person is exempt from VAT – such person has no obligation to register for VAT liability, has no obligation to submit declarations arising from the VAT Act and has no obligation to fulfill other obligations of the VAT payer.

    Last updated on 30.07.2025

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    Last updated: 05.11.2025

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