A long-awaited VAT exemption for children’s camps is finally set to take effect, but not until July, leaving families still paying more for summer camps in June.
The Riigikogu passed the relevant legislation on June 10 and President Alar Karis signed it into law on June 15, but as of Friday, it has not yet been published in the State Gazette.
In Estonia, laws typically take effect ten days after their publication. However, with next week including a shortened workday and a two-day public holiday, a Riigikogu spokesperson said the law is unlikely to be published before the end of the week, pushing its entry into force into early July.
That timing has left early summer programs in a transitional period where families are still paying VAT on camp fees that will soon be tax-free. despite officials repeatedly saying in recent months that children’s camps should not be taxed.
The exemption will not apply retroactively either, meaning VAT already paid on June camp fees will not be reimbursed.
‘All nonprofits should qualify’
Camp organizers say the policy change is welcome but unclear in practice.
Kaur Kötsi, head of the Estonian Camp Organizers Association (ELKL), said the exemption effectively confirms how camps should have already been treated.
Kötsi explained that camps operating under the Youth Work Act and providing what is now classified as non-formal education should now be exempt from VAT, but noted that the Value-Added Tax itself was not amended.
“So the exemption provided still emphasizes that the activity must be provided on a non-commercial basis,” he continued, adding that this shifts the key issue from principle to interpretation.
The ELKL director said uncertainty remains over which camps qualify as non-commercial, and warned that requiring case-by-case clarification from tax authorities is unrealistic for organizers running dozens of sessions over the summer.
“Our view is that all nonprofits, which already fundamentally operate on a nonprofit basis, should qualify,” Kötsi said, adding that he hopes the Estonian Tax and Customs Board (MTA) and camp organizers can work together to develop clearer guidelines.
Paying taxes to work and pay taxes
Parents, meanwhile, have already felt the impact in pricing. One Tallinn-area parent said she expected the VAT issue to be resolved before summer, but still paid nearly €70 in VAT alone on fees for two camps her child is attending this month.
“I was surprised to see a two-day city camp cost €85, and when I took a closer look, I saw €16 of that was VAT,” said Jekaterina, adding that a second, engineering-themed camp cost €250, including €50 in VAT.
While disappointed after government assurances this spring that a solution was on the way, she said she ultimately felt she had little choice.
“When parents work, elementary-aged kids shouldn’t be home alone from morning to evening,” Jekaterina said. “So I’ve paid €70 in VAT to the state so I can go to work while schools are on summer break and continue paying taxes myself.”
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