Parliament review VAT rate cuts to food, restaurants and other services
The Riigikogu, the Parliament of Estonia, is reviewing a Bill to reduce to the reduced VAT rate of 5% the following supplies:
- Food excluding alcohol and tobacco
- Restaurant and catering
- feed and mixed feed and the raw materials and additives used for their production, industrial waste used as animal food and feed raw materials
Estonia’s inflation, at over 22%, if currently the highest in the Eurozone.
April 2022: Temporary cut from 20% to 9% VAT on domestic gas and electricity May 2023
Estonia is looking at a temporary VAT rate cut on home energy from 1 May 2022 until 1 May 2023.
Many other European VAT energy and food cuts have been introduced as inflation has rocketed.
Last year, the EU Finance Ministers agreed to allow more freedoms on reduced VAT rate setting which have now come into effect. Sign-up for our free VAT & GST news updates.
