Käibemaksumäärade

Käibemaksumäärade refers to the rates of value-added tax (VAT) applied in Estonia. VAT is a consumption tax levied on goods and services. Estonia has a standard VAT rate and a reduced VAT rate. The standard rate is currently 20%, which applies to most goods and services. A reduced VAT rate of 9% is applied to a specific list of goods and services. This includes certain food products, medicines, books, and accommodation services. There are also specific exemptions from VAT for certain activities, such as financial services and healthcare. The Ministry of Finance is responsible for setting and amending these VAT rates based on economic conditions and legislative decisions. Changes to the käibemaksumäärade are typically announced in advance and come into effect on a designated date. Businesses operating in Estonia must correctly apply the relevant VAT rate to their taxable supplies to ensure compliance with tax regulations. The VAT collected is a significant source of revenue for the Estonian state budget.