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# Specific Taxes in Estonia
- URL: https://university.heavnn.io/specific-taxes-in-estonia/
- Published: 2024-06-13T13:30:36.000Z
- Updated: 2024-06-13T13:30:36.000Z
- Author: Heavnn
- Tags: Estonia, Country Tax Guides

### 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

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