The revenue from value-added tax (VAT) to the Estonian state budget has significantly increased due to high inflation, however, the amount of violations has doubled simultaneously.
Estonia is missing out on €145 million in VAT from foreign online shops every year. This is caused by insufficient legislation that, among other things, does not obligate the Tax and Customs Board (MTA) to compare foreign e-shops' declared VAT info to that of the Bank of Estonia.
VAT receipt was down 5.5 percent in July compared to June, while still outpacing last year's growth of 9.1 percent. The first seven months of 2022 have contributed 60.1 percent of the budget.
More than 6,000 people in Estonia have an entrepreneur account aimed at streamlining taxation of business activity. The average entrepreneur account received €2,339 in 2021.