Estonia
From 1 July 2025, Estonia will increase its standard VAT rate from 22% to 24%.
The reduced VAT rates will also increase from 9% to 13% and from 5% to 9%.
The government intends to use the additional revenue collected from this increase to fund the acquisition of long-range weapons systems and munitions.
If you are selling to customers in Estonia where you are charging VAT, you will need to ensure that the correct rate of VAT is applied on sales from 1 July 2025.
Lithuania
In March 2025, Lithuanian Prime Minister Gintautas Paluckas announced that the government plans to increase the reduced VAT rate in the country from 9% to 12%. This will affect supplies such as centralised heating, firewood, public transport, books and non-periodical publications.
The announcement confirmed that the standard 21% VAT rate and the super-reduced 5% rate for essential goods will remain unchanged.
Slovakia
From 1 January 2026, non-resident importers in Slovakia will be able to defer VAT on imports and report it in their VAT return.
This new regime will remove the requirement to pay import VAT on goods at the time they are imported. This will improve cash flow for businesses importing into the country, as they will no longer need to wait for the VAT to be refunded from the Slovakian tax authorities. This follows the July 2025 deferment introduction for resident importers. Using this procedure will require businesses to file monthly VAT returns in the country.
The above news was kindly provided by Fiscal Solutions (UK), www.fiscalsolutions.co.uk; contact: [email protected].
