VAT rate change from 1 July 2025
From 1 July 2025, the VAT rate will change from the current 22% to 24%.
The new tax rate will apply to all VAT taxable invoices issued by us from 1.7.2025 or for a period ending on or after 1.7.2025.
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 1.7.2025. 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 after 1.7.2025, but where the leased asset has been delivered to the customer before 1.7.2025.
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 1.7.2025.
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.