Estonia: Amendments on the Value Added Tax Act will enter into force 1 July 2022

The State Gazette of the Republic of Estonia, Riigi Teataja, issued Law No. 24 on 9 December 2021 which covers amendments made to the Value Added Tax Act (VATA). 

The Estonian Government has ruled that VAT should not be charged on the importation of goods made by EU sellers to cushion the impact of COVID-19. However, the VAT exemption does not include goods which are imported for the purpose of resale.  

The VAT Act is also amended as follows: 

• Input VAT deductions will be limited to taxpayers who fails to pay for goods and services 
• The VAT accounting principles are harmonized. 
• A zero-rated VAT on specific export and import services is introduced. 
• The Law established a procedure to determine taxable values of imported goods. 
• Excise tax rules is set for alcohol, tobacco, and fuel up to the value of EUR 45 per non-commercial consignment. 
• Taxation of collector coins should be in line with the EU VAT directive.  

The Law will be effective on 1 July 2022. 

Source: Riigi Teataja (State Gazette) of the Republic of Estonia