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VAT Finland 2024
- Last update: 23.02.2024
- Published: 05.06.2023
- Read in: 5 min
Taxes constitute a fundamental component of any country’s economic framework, and one essential element is Value Added Tax (VAT), referred to as Arvonlisävero in Finland. It is regulated by the European Union’s directives, which set the standard VAT rate at a minimum of 15 percent. In the case of intra-Community transactions, there is a threshold for mail orders, and once this threshold is surpassed, the transactions must be recorded at local VAT rates, leading to VAT settlement in Finland. This article will delve into the specifics of this process.
From the following article you will find out:
- What are the applicable VAT rates in Finland?
- When it is necessary to register for VAT in Finland?
- What are the deadlines for filing VAT returns in Finland?
- What are the Finnish Intrastat thresholds?
VAT rates in Finland
The standard VAT rate in Finland, which has been in effect since 2013, stands at 24%. This rate applies to the sale of goods and services that do not fall under the reduced VAT rates in Finland.
14% – the first reduced VAT rate in Finland
When discussing Finnish VAT, it’s essential to highlight the reduced rates, with the initial one being 14%. This reduced rate applies to the following categories:
- food products (excluding alcoholic beverages),
- restaurant and catering services,
- agricultural products,
- non-alcoholic beverages,
- cut flowers and plants intended for food production.
10% – the second reduced VAT rate in Finland
Another reduced VAT rate in Finland is 10%, and this rate is applicable to the following taxable products and services:
- pharmaceutical products,
- domestic passenger transport,
- books, e-books, newspapers and magazines,
- tickets for cultural events, sports events and amusement parks,
- the work of writers and composers.
0% – zero VAT rate in Finland
Products and services subject to the 0% VAT in Finland are:
- intra-Community transport,
- international transport,
- collectors’ items,
- works of art and antiques,
- printing services for publications of non-profit organisations
Who is required to register for VAT in Finland?
In Finland, VAT registration is necessary in situations similar to those in other EU member states. These include:
- importing goods from non-EU countries into the Finnish market,
- exporting goods from Finland to countries outside the EU,
- selling goods and services within Finland,
- procuring goods from other EU countries and bringing them into Finland,
- storing goods within Finland,
- organising fee-based events.
It’s important to note that, beginning July 1, 2021, the mail order limit of EUR 10,000 applies to transactions within EU countries. Entrepreneurs engaged in business activities are required to register for VAT in the respective country to which the sale of goods and services was made when this limit is exceeded, starting with the transaction that surpasses the limit.
The VAT registration process in Finland
The registration of your business for VAT in Finland is completed electronically using the MyTax website. Alternatively, you can opt to employ a tax representative for this task, but in such a scenario, the representative must be authorised on Suomi.fi.
Deadline for filing VAT returns in Finland
By default, a VAT taxpayer in Finland files their returns electronically, although there is an exception where they can opt for submitting a paper form.
Furthermore, Finland has three VAT periods for declaring VAT returns, which are determined based on the business’s revenue:
- monthly – This is the mandated reporting frequency for VAT returns for companies that have surpassed an annual revenue of EUR 100,000. These businesses are required to submit their monthly returns in Finland by the 12th day of the second month following the end of the accounting period.
- quarterly – This schedule is applicable to businesses with an annual revenue of less than EUR 100,000. Similar to the monthly declaration, the deadline for the quarterly return is the 12th day of the month following the conclusion of the accounting period.
- annual – Designed for companies whose annual income does not exceed EUR 30,000. The due date for filing the annual return is the last day of February following the accounting period.
The Finnish Tax Office
The tax authority in Finland is known as Verohallinto.
You can get in touch with them by calling either 029 497 051 or 029 497 024, or alternatively, via their official website.
Intrastat serves as the statistical mechanism by which the European Union collects data about intra-Community transactions. To facilitate this, entrepreneurs who surpass the Intrastat thresholds, as defined by national authorities, are obligated to provide Intrastat reports.
In Finland, these thresholds for both imports and exports are set at EUR 800,000 each. If you’re interested in learning about Intrastat thresholds in various other EU countries, you can refer to our article on this topic.
VAT Finland 2024 - Summary
VAT in Finland, as in many other countries, plays a pivotal role in the context of selling goods and providing services. It is essential for businesses to acquaint themselves with the applicable regulations and comply with the provided guidelines to prevent potential penalties and sanctions.
If your business engages in sales to other EU countries, the UK, or operates through online marketplace platforms and requires VAT-related assistance, don’t hesitate to reach out. Schedule a free consultation and witness firsthand how our VAT Compliance specialists can provide valuable support for your business, whether it’s regarding VAT registrations, filing tax returns, VAT settlements, or VAT OSS.