June 20, 2023
The Estonian coalition government is contemplating a change in the VAT rates for tourist accommodation and the press. Under the proposed tax reform plan, the current 9% VAT rate for tourist accommodation would be replaced by a higher rate of 22% after 2025. Finance Minister Mart Võrklaev acknowledged the concerns of accommodation managers, considering the challenging impact of the Covid-19 pandemic on the sector. While representatives from the tourism industry suggested a 12% VAT rate as a possible alternative, specific figures are yet to be determined, with a compromise expected between 9% and 22%. Additionally, the government is also considering eliminating the 5% VAT rate for press expenses, which has been in effect since August 2022. The Ministry of Finance has conducted calculations on the potential effects, recognizing both risks and opportunities associated with the proposed VAT changes.
Source: BNN
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