Specific Taxes in Estonia

Value-Added Tax (VAT):

• Nature: A consumption tax levied on the value added to goods and services at each stage of production and distribution.
• Basis: Applied to the sale of goods and services at a standard rate of 20% in Estonia, with reduced rates of 9% and 0% for certain items.
• Legal Reference: Value Added Tax Act (VATA).

Social Tax:

• Nature: A tax on labor-related income used to fund social security benefits.
• Basis: Imposed on employers' and employees' income at a rate of 33% (20% for employer, 13% for employee) on gross salaries.
• Legal Reference: Social Tax Act.

Land Tax:

• Nature: A tax on the ownership of land, including agricultural, residential, and commercial properties.
• Basis: Calculated based on the cadastral value of the land and rates set by local municipalities.
• Legal Reference: Land Tax Act.

Customs Duties:

• Nature: Taxes imposed on the import and export of goods crossing the Estonian border.
• Basis: Rates vary depending on the type and value of goods being imported or exported.
• Legal Reference: Customs Act.

Excise Duties:

• Nature: Taxes on specific goods, such as alcohol, tobacco, and fuel, to discourage consumption and fund public services.
• Basis: Imposed on the quantity or volume of excisable goods produced or imported.
• Legal Reference: Excise Duty Act.

Taxpayers Subject to These Taxes:

• VAT: Businesses selling goods or services, including importers and exporters.
• Social Tax: Employers and employees earning income from employment.
• Land Tax: Property owners, including individuals and legal entities.
• Customs Duties: Importers and exporters of goods.
• Excise Duties: Producers, importers, and sellers of excisable goods.

Purpose/Rationale:

• VAT: Generates revenue for the government and helps fund public services.
• Social Tax: Funds social security benefits, healthcare, and pensions.
• Land Tax: Generates revenue for local municipalities and encourages efficient land use.
• Customs Duties: Regulates trade and protects domestic industries.
• Excise Duties: Discourages consumption of harmful goods and generates revenue for specific purposes.

Legal References:

• Value Added Tax Act (VATA)
• Social Tax Act
• Land Tax Act
• Customs Act
• Excise Duty Act