Finland VAT guide
Finland introduced Value Added Tax (VAT) in 1994. The official Tax Authority of the country is Verohallinto, founded in 1970.
Recent updates
- Reduction in the reduced VAT rate from 14% to 13.5% with effect from 1 January 2026.
- 2025 changes: Increased VAT from 10% to 14% on hotel, public transport and books, effective January 2025
- VAT Registration Threshold increased from €15,000 to €20,000 effective January 2025
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What is the VAT rate
in Finland?
25.5%
Standard VAT rate: 25.5%.
Reduced rate: 14% and 10%
14% applies to products such as food items, books, public transport, cinema, agri supplies, restaurants and catering, hotelss, entrance to cultural and sporting events.
10% applies to newspapers, journals, magazines and pharmaceuticals.
Zero rate: 0%
Applies to exports and intracommunity supplies.
Exempt categories: Activities in public interest, such as heath, education and other listed activities such as finance and insurance.
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VAT registration in Finland
A seller must register for VAT if their annual turnover exceeds €20,000 (raised from €15,000 in 2024).
Non-established businesses:
- EU Businesses: Must register if thresholds are exceeded and notification formalities completed:
- EU-wide threshold: €100,000
- Finland threshold: €20,000
- Distance Sales: Registration not required if total sales are below €10,000.
- Non-EU Businesses: Must register for VAT regardless of turnover and may use the One Stop Shop (OSS) scheme if applicable.
Registration usually takes up to 3 weeks to be processed. If the company already has a Business ID in Finland, the registration can be completed through MyTax portal. The Business ID is issued when the business gets established.
eInvoicing requirements
- B2B eInvoicing: Since April 2020, customers with annual turnover greater than €10,000 can request vendors to issue eInvoices.
- B2C transactions: Not currently mandated.
- Future mandate: Full B2B eInvoicing expected by 2030 under ViDA implementation.
VAT return filing and deadlines
VAT returns can be filed monthly, quarterly, or annually, depending on turnover:
- Monthly: Default for all new VAT registrations. Due by the 12th day of the second month following the end of the tax period.
- Quarterly: Permitted if annual turnover is less than €100,000. Due by the 12th day of the second month following the end of the tax period.
- Annually: Permitted if annual turnover is less than €30,000. Due by the 28th/29th February of the following year.
VAT penalties
For late VAT filing penalties, there is an initial penalty of €3 per day, up to 45 days (maximum €135).
After 45 days, €135 plus 2% of the late VAT amount, up to a maximum of €15,000. An additional 2% may apply if corrections are made.
Fiscal representatives
Fiscal representative is not required to be appointed by non-EU businesses.
VIES declarations
VIES (VAT Information Exchange System) filing frequency is monthly and VIES must be submitted by the 20th calendar day after the end of the respective month.
Intrastat
Registration and submission
Businesses must submit Intrastat reports when movements of goods within the EU exceed specified thresholds.
Intrastat Thresholds
Intrastat Arrivals:
- Simplified Reporting: €800,000
- Detailed Reporting: €800,000
Intrastat Dispatches:
- Simplified Reporting: €800,000
- Detailed Reporting: €800,000
Intrastat
Deadlines and frequency
Intrastat respondents have to submit their declarations monthly. The legal deadline is the 10th calendar day after the end of the reporting month.
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