Glossary
VAT
Definition
VAT, or value added tax, is a tax on the value added at each stage of a sale. A VAT-registered company charges VAT on its sales and pays the difference between what it charged and what it paid on its own purchases. In Estonia the standard rate is 24% from 1 July 2025.
Example. A sale of €100 plus 24% VAT is invoiced as €124, and the €24 is output VAT.
Why it matters for your company
VAT is the tax your company handles most often. Understanding how it moves through each invoice is the basis for the KMD and for setting your prices.
Where you see it in Sapita
On each sales and purchase line with its VAT class, and in the KMD on the VAT screen.