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Estonia food and hospitality service VAT cut proposal

15.6% inflation prompts targeted VAT cuts ahead of proposed standard rate rise to 22% in 2024

Whilst headline inflation rate in the Baltic state of Estonia is falling back – dropping from the August 25% peak to 15.6% in March – the parliament, Riigikogu, is reviewing a targeted cut on some services.

There is likely to be an Estonia VAT rise on the standard rate from 20% to 22% in January 2024. Read more in our Estonian VAT country guide.

The Bill now in parliament is to reduce the following supplies to 5%:

  • Basic foodstuffs
  • Restaurant, café and catering services
  • Some animal foodstuffs

A number of EU countries are cutting fuel and basics VAT to help households deal with record inflation rates this winter.


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