Estonia, Legislation, Markets and Companies, Retail

Authors of the law amendment say that shops in Tallinn are forced to increase prices because of the new 1% sales tax implemented in Tallinn from June 1, but they won’t manage to make new labels for all products on sale by that time. Thus, the law amendment allows them to add the sales tax part at the cashier’s till July 31. This can be done if a poster with the explanations is posted at a visible place in the shop so that consumers would not be misled.

The initial plan was to allow a 7-months transition period, till January 1 when most likely Estonia will adopt the euro and shops have to re-label all goods again. Because of the government’s opposition, the transition period was shortened and tied to August 1 when the fair pricing agreement of retailers will come in force.