Estonia VAT (KM) 2026 — 24% Standard, 9% Reduced

Estonia applies a 24% standard KM rate (raised from 22% in July 2025) (Käibemaks) and a reduced 9% rate in 2026. Here is every rate, threshold, invoice rule and cross-border treatment you need, with worked examples and links to free tools.

2026 KM Rates at a Glance

Official sources: Estonian Tax and Customs Board (Maksu- ja Tolliamet)

Last verified: 27 October 2026. Sources: EU Commission VAT rates, ECB euro reference rates and national tax authorities. Confirm with your local authority before filing.

These are the only two rates Estonia applies. Use the VAT calculator in Custom-rate mode to compute any amount at either rate, or check an Estonian VAT number format with the VAT validator.

What the 9% Reduced Rate Covers

• Food and non-alcoholic beverages — supermarket groceries, bread, dairy, fruit, vegetables. Restaurant meals are standard-rated.
• Books, newspapers and magazines — printed and certain digital publications.
• Medical equipment and aids — wheelchairs, hearing aids, glasses, prostheses.
• Pharmaceutical products — prescription and over-the-counter drugs.
• Passenger transport — bus, tram, rail within Estonia.
• Cultural events — cinema, theatre, museum admission.

If your invoice mixes standard and reduced items, you must split the taxable amount per rate. The invoice generator handles split-rate KM automatically.

VAT Registration Threshold

• Mandatory registration: annual turnover exceeding €40,000 in the current or previous 12-month period.
• Voluntary registration: businesses below the threshold may voluntarily register to reclaim input VAT.
• Non-Estonian businesses: foreign businesses making taxable supplies in Estonia must register for VAT regardless of turnover.

VAT Registration in Estonia

1. Who must register: any business exceeding the €40,000 threshold, plus all non-Estonian businesses making taxable supplies in Estonia.
2. Where: register with the MTA (Estonian Tax and Customs Board). Applications can be submitted online via e-MTA.
3. What you receive: a VAT identification number (EE + 9 digits) required for all cross-border B2B transactions.
4. Timeline: register before you start making taxable supplies. Late registration can trigger backdated VAT assessments.

Estonian Invoice Requirements

1. Supplier details — full legal name, registered address, VAT identification number and reg number.
2. Customer details — full name and address; for cross-border B2B their VAT ID as well.
3. Invoice number — unique, sequential, no gaps allowed.
4. Invoice date — the date of issue; add date of supply if it differs.
5. Description — nature and quantity of goods or services supplied.
6. Unit price — net price per unit, excluding KM.
7. Rate and amount — applicable KM rate (24% or 9%) per line, net subtotal per rate, total KM amount, gross total.
8. Special references — reverse charge statement where applicable, exemption references.

Reverse Charge in Estonia

• B2B services from Estonia to an EU customer: invoice at €0 KM with reverse charge reference.
• B2B services received from abroad: self-account Estonian KM under the reverse charge.
• Specific supplies: gold, mobile phones, computers — the buyer self-accounts regardless of location.

Check any cross-border scenario with the reverse-charge vs OSS checker.

OSS — Estonia and the One Stop Shop

• B2C distance sales of goods above €10,000 per year — charge destination country's VAT and declare through OSS.
• Registration: register for OSS via the MTA portal. File one quarterly return covering all destination countries.
• Below €10,000: charge Estonian 24% KM on all B2C cross-border sales.

Worked Examples

Worked Example — Adding 9% Reduced KM

A Tallinn pharmacy sells medicine worth €500 net. The reduced 9% rate applies.

Gross = €500 × 1.09 = €545 · KM = €45

Verify instantly with the VAT calculator — select Estonia and set 9% in Custom-rate mode.

How to Use the Estonian VAT Calculator

1. Select Estonia from the country dropdown — the standard 24% rate auto-fills.
2. Choose mode: Add KM (net → gross), Remove KM (gross → net), or Custom rate (use 9% for reduced items).
3. Enter the amount and click Calculate. Net, KM and gross appear instantly.
4. Copy or download the result for your records or to paste into an invoice.

🔒 100% Client-Side Privacy: All calculations execute locally in your browser. No financial data, amounts, or tax entries are ever stored on or transmitted to our servers.

Other Countries VAT Guides

Looking for VAT rules in another country? VAT guides are available for all 27 EU member states:

See all rates in our EU VAT rates 2026 table, or use the VAT calculator to compute any amount.

Frequently Asked Questions

Informational purposes only — not tax advice. Rates and thresholds sourced from the Estonian MTA and EUR-Lex. Always confirm with your local maksunõustaja or tax advisor.