Upcoming Tax Rate Changes in Estonia (Effective July 1, 2025)

On July 1, 2025, the default value-added tax (VAT) rate in Estonia will change from 22% to 24%. If you want your account data (product catalog, price lists, and more) to be automatically updated, you can find the application the Erply menu. This application will make the change automatically between 00:00 and 08:00 on July 1.

The automatic data update will change the following entries from a 22% tax rate to 24%:

• Products and services
• Cash registers
• Gift cards
• Suppliers

Entries with other tax rates (e.g., 0% or 9%) will not be affected by this change

Previous sales and purchases will not be affected by the change.

If you choose to keep prices with VAT unchanged, Erply will also recalculate the net prices in the product catalog, service list, and selected price lists.

Opening the application

To Open the application, go to Erply menu - PIM - Additional links - Request a VAT change (EE 2025).

Or click on this link and log in.

Recommendations for Different Situations

Creating Invoices from Sales Orders

• If the sales order has a 22% VAT rate and is prepaid before July 1st, 2025, creating an invoice after July 1st, 2025 will maintain the 22% VAT rate because Erply does not change existing documents. This is correct because the payment date determines the VAT rate.
• If the sales order has a 22% VAT rate and is not prepaid, creating an invoice after July 1st will still show the 22% VAT rate. However, the user must manually change the VAT rate to 24% since the payment date determines the VAT transaction.

Credit Invoices

• Crediting a 2025 invoice will not change the VAT because Erply does not alter existing documents.

Copying Invoices

• Copying a 2025 invoice from before July 1st will not change the VAT. Therefore, it is the user's responsibility to manually change the VAT rate from 22% to 24%.

Recurring Billing Statements

• Invoices based on billing orders for services provided before July 1st, 2025 may be issued with 22% VAT.
• Note: Erply does not automatically update the VAT rate on billing orders. Starting from July 1, 2025, you must manually update the VAT rate on billing orders.

To update the VAT rate on billing orders:

1. Open the Tax Rate application.
2. Go to the Replace Tax Rate submenu.
3. Choose the old VAT rate for the recurring billings.
4. Enter the new VAT rate into the box.
5. Choose whether to keep the product's net price or price with VAT.
6. Click Update.