Finland VAT guide
Finland introduced 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
- Intrastat Arrivals phased out from 1 January 2026.
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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 health, education and other listed activities such as finance and insurance.
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VAT registration in Finland
Domestic businesses
A seller must register for VAT if their annual turnover exceeds €20,000.
Non-established businesses
- Must register for VAT in Finland from first taxable supply where Finnish VAT is due
- No registration threshold applies
- (Exceptions may apply where the reverse charge mechanism is applicable.)
Distance selling
The EU-wide threshold of €10,000 applies to cross-border B2C sales.
Below this threshold, VAT may be accounted for in the seller’s home country.Â
Above this threshold, businesses must either:
- Register for VAT in Finland, or
- Use the One Stop Shop (OSS) scheme
Non-EU businesses
- Must register from the first taxable supply in Finland
- No registration threshold applies
- A fiscal representative is generally required
VAT registration is carried out through the Finnish Tax Administration (MyTax portal). Registration typically takes 3–4 weeks once the application is submitted.
eInvoicing requirements
- B2B eInvoicing: eInvoicing is not generally mandatory. However, customers with annual turnover greater than €10,000 can request vendors to issue eInvoices and suppliers must comply.
- B2C transactions: Not currently mandated.
- B2G eInvoicing: eInvoicing is mandatory for all suppliers to public authorities. Invoices must comply with the European standard (EN 16931)
- Future mandate: As part of the EU’s VAT in the Digital Age (ViDA) initiative, mandatory eInvoicing is expected for intra-EU cross border B2B2 transactions from 2030. No full domestic B2B mandate has been introduced in Finland.
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 Dispatches:
- Reporting threshold: €800,000
- Please note: Intrastat Arrivals will no longer be required for reporting periods from 1 January 2026.
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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