--- title: Change in VAT rate from 01.01.2024 date: 2023-10-26T05:29:42Z modified: 2024-05-22T12:35:24Z permalink: "https://grow.ee/kaibemaksumaara-muudatus-alates-01-01-2024/" type: post status: publish excerpt: Update your knowledge of the important changes in VAT rate from 01.01.2024. wpid: 8920 featured_image: "https://grow.ee/wp-content/uploads/2023/10/images-1.jpg" featured_image_alt: Change in VAT rate timestamp: 2024-05-22T12:35:24Z tags: - Taxes - tax changes - laws --- ![Change in VAT rate](https://grow.ee/wp-content/uploads/2023/10/images-1.jpg) As of 01.01.2024, the standard VAT rate in Estonia is 22%, instead of the previous 20%. If the transaction falls on the turn of the year 2023/2024, the VAT rate will be applied depending on the time of the transaction, i.e. when the advance payment is made or the goods are delivered or the service is provided. In connection with the amendment, a **transitional provision** has been established, which concerns **long-term contracts** (in particular leasing contracts and transactions related to real estate): until 31 December 2025, there is the right to apply the 20% VAT rate to the sale of taxable goods/services based on a written contract concluded before 1 May 2023, if the contract stipulates that the price of the goods/services includes VAT or 20% VAT is added to the price and the contract does not stipulate a change in the price resulting from a possible change in the VAT rate. Information related to the change in the VAT rate and examples of taxation can be found on the Tax and Customs Board website: [https://www.emta.ee/ariklient/maksud-ja-tasumine/kaibemaks#naited-01012024](https://www.emta.ee/ariklient/maksud-ja-tasumine/kaibemaks#naited-01012024) Tax laws can be complex and [consulting a tax advisor](https://grow.ee/services/maksunoustamine/) is recommended to obtain more accurate and relevant information about your specific situation. It is always wise to consult your [accountant](https://grow.ee/services/raamatupidamine/) or tax advisor in advance before planning future transactions. 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