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The Finnish government sets the rates for the standard, higher VAT rate, as well as for any reduced rates. The EU requires the minimum standard rate is above 15%, and sets some broad rules on which goods may be classified as the reduced or nil rates. Any non-resident VAT registered company must use the Finnish rates, and will be held to account for any shortfalls in VAT charged.
The current rates are:
Finland VAT rates | ||
Rate | Type | Which goods or services |
24% | Standard | All other taxable goods and services |
14% | Reduced | Foodstuffs (excluding live animals); some agricultural supplies; restaurants and catering services (excluding alcoholic beverages); soft drinks; take away food; cut flowers and plants for food production |
10% | Reduced | Pharmaceutical products; domestic passenger transport; books (including e-books); newspapers and periodicals (sold on subscription); admission to cultural events and amusement parks; TV licence; writers and composers; hotel accommodation; admission to sports events; use of sports facilities; domestic transport |
0% | Zero | Printing services for publications of non-profitmaking organisations; intra-community and international transport; some taxation of gold ingots, bars and coins; certain works of art, collectors items and antiques |
Once Finnish VAT registered, foreign companies must comply with the local rules on accounting, processing invoices and other measures. These include:
The tax point (time of supply) rules in Finland determine when the VAT is due. It is then payable to the tax authorities 10 days after the VAT reporting period end (monthly or quarterly).
For most goods, it is the time of delivery or passage of title. For services, it is the completion of the service.
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