The increase in receipts is caused by labour taxes, tax changes and large transactions before and after tax increases.
According to Raili Roosimaa, ETCB’s Deputy Director General for Taxes, this year's tax receipts have steadily increased every month. “Increases in salary payments and a strong salary fund continue to be the main drivers of labour tax receipts, increasing by 5.4% compared to the previous year. During the year, tax receipts have also been significantly impacted by changes in tax rates and a decrease in incentives for natural persons," explained Roosimaa.
In seven months, the receipts of income tax of natural persons increased by 21%, i.e. by 289 million euros. The reason for the increase is the increase in the income tax rate and the cancellation of several tax incentives, as a result of which less income tax was refunded than in previous years.
Social tax receipts increased by 159 million euros compared to the same period a year earlier. The increase was driven by an increase in salary payments.
VAT receipts boosted by an increase in the standard VAT rate
In seven months, 161 million euros more VAT was collected than last year. The new standard VAT rate, which entered into force in July, has had a direct impact on receipts, which increased by 28 million euros compared to July last year. “The increase in VAT receipts has been influenced by price increases, the significantly higher receipts in June before the increase in the VAT rate, as well as the new rate itself that entered into force in July,” said Roosimaa.
Although the receipts of corporate income tax increased by a total of 163 million euros compared to the first seven months of last year, it decreased significantly in July this year. Monthly receipts decreased by nearly 50 million euros compared to July last year. “When comparing the receipts of July, it must be taken into account that in July 2024 the receipts of corporate income tax were exceptionally high, mainly due to the good financial performance of banks and large one-off profit distributions,” explained Roosimaa.
Collection of excise duties is mostly on an upward trend
The receipts of excise duties continued the upward trend, but the receipts of alcohol excise duty decreased by 6.5 million euros. The decrease is due to the large-scale stockpiling that took place at the end of last year before the excise duty rate was increased.
Tax arrears decrease
A significant change has occurred in tax arrears – on 1 August 2025, the tax arrears amounted to 415 million euros, which is 915 000 euros less than a month earlier. 11.6% of the tax arrears are paid in instalments. The number of debtors decreased by nearly 16 800 persons during July, mainly due to the payment of motor vehicle tax. At the same time, VAT arrears increased by nearly one million euros.
According to Roosimaa, the VAT arrears are probably related to the increase in the volume of transactions in June before the increase in VAT rate, which resulted in higher amounts declared, but reduced the solvency of companies in July. “We see that 88.3% of all claims due in July were paid on time, a slight decrease compared to the previous period. Hopefully the claims will be paid by the end of the calendar year," she said.
The ETCB asks taxpayers to ensure that tax liabilities are paid or deferred as soon as possible.
Tax arrears may impact, inter alia, the receipt of subsidies, but also the issue and validity of authorisations. Furthermore, a legal person with tax arrears cannot participate in public procurements if the arrears are not being paid in instalments. “We are happy to advise any taxpayer and try to offer solutions on how to meet or reschedule tax obligations," said Roosimaa.
By deferring the tax liability, it can be paid in instalments. The fastest way to reschedule tax obligations is to submit an application together with a payment schedule in the e-services environment of the ETCB. The application for payment in instalments can be submitted for 2 to 24 months. Unpaid tax liabilities are subject to an interest at the rate 0.06% per day, i.e. 21.9% per year. However, it is possible to apply for a reduction of the interest rate by up to 50% from the approval of the decision to defer tax arrears; such a request must be indicated in the application for payment in instalments. More information on the rescheduling of tax arrears for private customers and companies can be found on the website of the ETCB. Instructions and FAQs can also be accessed by logging in to the e-MTA and selecting Help Center and “Payments of tax liabilities in instalments” from the menu.
Information on tax receipts can be found on the website of the Tax and Customs Board.
