VAT rates & tax codes
Estonian VAT rates and tax codes in Arvello: 24% standard, 13% accommodation, 9% reduced, plus reverse charge and export codes mapped to the right KMD lines.
Every line on an invoice or expense in Arvello carries a tax code. The code does two jobs: it sets the VAT rate for the line, and it decides where the amount lands on the KMD — the VAT return filed with EMTA, the Estonian Tax and Customs Board. Get the code right and the return assembles itself.
Tax codes in Arvello are date-aware. Estonia has changed its rates more than once recently, so the codes on offer depend on the document's date — an invoice from May 2025 calculates at 22%, one from July 2025 at 24%, and both stay correct in your books.
VAT rates as of 2026
| Rate | Applies to | Notes |
|---|---|---|
| 24% | Standard rate — most goods and services | In force since 1 July 2025 |
| 13% | Accommodation services | Since 1 January 2025 |
| 9% | Reduced rate — press, books, medicines |
Older documents keep their own rates: the standard rate was 22% from January 2024 to June 2025 and 20% before that, and press publications were 5% until the end of 2024.
The tax codes
The codes available for documents dated in 2026, as they appear in Arvello:
| Tax code | Rate | Typical use |
|---|---|---|
| Standard rate (24%) | 24% | Domestic sales and purchases of most goods and services |
| Accommodation (13%) | 13% | Accommodation services |
| Reduced rate (9%) | 9% | Press, books, medicines |
| Intra-community services (0%) | 0% | Services to VAT-registered businesses elsewhere in the EU |
| Intra-community supply of goods (0%) | 0% | Goods to VAT-registered businesses elsewhere in the EU |
| Export (0%) | 0% | Sales to customers outside the EU |
| Reverse charge (0%) | 0% | EU cross-border transactions where the buyer accounts for the VAT |
| Intra-community acquisition (0%) | 0% | Goods bought from EU suppliers — you self-assess the VAT |
| VAT exempt | 0% | Exempt supply (no VAT charged) |
| Not subject to VAT | — | Outside VAT scope — the default when your company isn't VAT-registered |
Three historic codes — Standard rate (22%), Standard rate (20%) and Press publications (5%) — appear only for documents dated within their validity periods.
How a line gets its code
When you choose a client, Arvello sets a default code on every line from your VAT registration status, the client's country and VAT number validity, and the invoice date:
- Company not VAT-registered → Not subject to VAT, always
- Estonian client → the standard rate for the invoice date
- EU client with a validated VAT number → Reverse charge (0%)
- EU client without a valid VAT number → the Estonian standard rate
- Client outside the EU → Export (0%)
The default is only a default: every line has its own tax code dropdown, so a single invoice can mix rates — and only codes valid on the document's date are offered. Some codes add the required invoice wording automatically, such as the reverse-charge reference to Article 196 of the EU VAT Directive. Client VAT numbers come from the client record.
What each code drives on the KMD
| Tax code | On sales invoices | On purchase invoices |
|---|---|---|
| Standard rate (24%) | Line 1 | Input VAT to line 5 |
| Standard rate (22%) | Line 1.1 | Input VAT to line 5 |
| Standard rate (20%) | Line 1.2 | Input VAT to line 5 |
| Accommodation (13%) | Line 2.2 | Input VAT to line 5 |
| Reduced rate (9%) | Line 2 | Input VAT to line 5 |
| Press publications (5%) | Line 2.1 | Input VAT to line 5 |
| Intra-community services (0%) | Lines 3 and 3.1 | — |
| Intra-community supply of goods (0%) | Lines 3, 3.1 and 3.1.1 | — |
| Export (0%) | Lines 3 and 3.2 | — |
| Reverse charge (0%) | — | Self-assessed — VAT added to output and input, informative line 6 |
| Intra-community acquisition (0%) | — | Self-assessed — informative lines 6 and 6.1 |
| VAT exempt | Line 8 | — |
| Not subject to VAT | — | — |
The domestic rate codes also drive the KMD INF invoice annex — see Preparing a KMD return for how that's assembled and reviewed.
Key Takeaways
- 1The tax code on each line sets both the rate and where the amount lands on the KMD
- 2Codes are date-aware, so older documents keep their period's rate
- 3The default comes from the client's country and VAT number; any line can be overridden
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