VAT rate change from 1 January 2024
From January 1, 2024, the VAT rate will change from the current 20% to 22%.
Among our services, the increase in the VAT rate primarily concerns leasing.
In the case of financial leasing, the new tax rate applies to all agreements where the leased asset is delivered to the customer from 1.1.2024. In the case of financial leasing, VAT is applied to the sales invoice of the asset, but not on regular (monthly, quarterly, etc.) leasing invoices. The increase in the tax rate does not concern those financial leasing agreements that continue in 2024, but where the leased asset has been delivered to the customer before 1.1.2024.
In the case of operational leasing, the new tax rate applies to all regular (monthly, quarterly, etc.) leasing invoices submitted for a period ending on or after 1.1.2024.
Additional information and examples of VAT rate changes can be found on the Tax and Customs Board’s website.
If you have any questions, please write to us at info@opbank.ee.