On January 1, 2024, the default value-added tax (VAT) rate in Estonia will change from 20% to 22%. If you want your account data (product catalog, price lists, and more) to be automatically updated, you can find the application the Erply menu. This application will make the change automatically between 00:00 and 08:00 on January 1.
The automatic data update will change the following entries from a 20% tax rate to 22%:
- Products and services
- Cash registers
- Gift cards
- Suppliers
Entries with other tax rates (e.g., 0% or 9%) will not be affected by this change.
Previous sales and purchases will not be affected by the change.
If you choose to keep prices with VAT unchanged, Erply will also recalculate the net prices in the product catalog, service list, and selected price lists.
Opening the application
To Open the application, go to Erply menu -> PIM -> Additional links -> Request a VAT change (EE 2024).
Or click on this link and log in.
In the opened window, you can make the following choice:
Example
| Net price | Price with VAT | VAT rate | |
| Product price right now | 10 | 12 | 20% |
| Net price is kept | 10 | 12.20 | 22% |
| Price with VAT is kept | 9.8361 | 12 | 22% |
Recommendations for different situations:
Creating invoices from sales orders:
If the sales order has a 20% VAT rate and is prepaid in 2023, creating an invoice in 2024 will maintain the 20% VAT rate because Erply does not change existing documents. This is correct because the payment date determines the current VAT transaction.
If the sales order has a 20% VAT rate and is not prepaid, creating an invoice in 2024 will maintain the 20% VAT rate. Here, the user must manually change the VAT rate to 22% since the payment date determines the VAT transaction.
Credit invoices:
Crediting a 2023 invoice will not change the VAT because Erply does not alter existing documents.
Copying invoices:
Copying a 2023 invoice will not change the VAT because Erply does not alter existing documents. Therefore, it is the user's responsibility to change the VAT rate from 20% to 22%.
Recurring billing statements:
If you issue monthly invoices based on billing statements, the law allows invoices for services provided in 2023 to be issued with a 20% VAT rate. Therefore, Erply does not automatically update billing statements. After issuing December invoices, please go to the Tax Rate application and press the button to change the VAT rate from 20% to 22%.