käibemaksumäär

Käibemaksumäär refers to the value-added tax rate applied to goods and services in Estonia. It is a consumption tax levied at each stage of the supply chain, with the final consumer ultimately bearing the burden. The standard käibemaksumäär is currently 20%. This rate is applied to most goods and services, including retail sales, professional services, and imports.

Estonia also has a reduced käibemaksumäär of 9%. This lower rate is applied to specific categories of goods and services deemed essential or socially important. Examples include certain foodstuffs, pharmaceuticals, books, and accommodation services. The purpose of a reduced rate is often to make these items more affordable for consumers.

In addition to the standard and reduced rates, there is also a zero käibemaksumäär. This rate, effectively meaning no VAT is charged, is applied to exports of goods and services outside the European Union, as well as to intra-Community supplies of goods and services. It ensures that businesses operating internationally are not disadvantaged by VAT. The käibemaksumäär is determined by Estonian law and can be subject to change by the government.