Starting from January 1, 2024, the VAT rate in Estonia is 22%, instead of the previous 20%.
For finance lease agreements, there will be no changes in the payments due to the increase in VAT if the selling price of the leased object has been paid to the seller and the leased object has been handed over to you by December 31, 2023.
Regarding operating lease agreements, the application of the new VAT rate depends on the moment of contract conclusion.
If the operating lease agreement is concluded until April 30, 2023, the old VAT rate of 20% will be added to the installments (principal payments) until December 31, 2025, and the new VAT rate of 22% will apply to such agreements starting from January 1, 2026.
If your operating lease agreement is concluded from May 1, 2023, the new VAT rate of 22% will be added to the operating lease installments (principal payments) immediately from January 1, 2024.
When purchasing the leased object (e.g., a vehicle) of an operating lease agreement, the new VAT rate of 22% will be added from January 1, 2024.
You can find all the details of your lease agreement in the leasing portal.