Estonia Tax Rate Increase
Estonia has increased the standard VAT rate from 22% to 24% as of July 1, 2025.
Romania to Follow
At the beginning of July, the Romanian parliament approved a tax rate increase from 19 to 21 percent as of August 1, 2025. The country is following a recommendation of the International Monetary Fund (IMF).
Additional Changes in Romania
- One of the reduced tax rates will be increased from 9 to 11 percent
- This affects food, water, books, and hotel/catering services
- Under certain conditions, a VAT rate of 9% continues to apply to residential real estate until August 1, 2026
Impact for Businesses
These changes affect VAT refund calculations for businesses operating in these countries. Ensure your systems are updated to reflect the new rates for accurate VAT recovery claims.