Estonia VAT proposals

Thu 14th May 2015

The Estonia government has proposed to withdraw a number of tax raising measures. Their cancellation will be funded by as yet unspecified spending cuts. There will though be an increase in alcohol (10%) and tobacco (5%) duties in 2016.

The changes include:

  • Withdrawing the proposed rise in Estonian VAT on hotels. The plan had been to reclassify hotel accommodation from the reduced rate of 9% to the standard rate of 20%
  • Cancel the fuel excise duty increase of 5% planned for 2019

The above rises had originally been proposed to help close the stubborn government deficit.

Estonia’s Government recently met to consider budget strategies for the coming four years, including talk of tax measures.