Finland operates a value-added tax (VAT) system known locally as Arvonlisävero (ALV). Finland is a member of the European Union (EU), and its VAT framework is aligned with the principles of the EU VAT Directive.
Finnish VAT is governed primarily by the Value Added Tax Act (Arvonlisäverolaki) and related regulations. VAT is administered by the Finnish Tax Administration (Verohallinto). The Finnish Tax Administration is responsible for issuing guidance, processing VAT registrations and returns, overseeing compliance obligations, and enforcing VAT rules in Finland.
Businesses carrying out taxable activities in Finland — whether resident or nonresident — must comply with Finnish VAT obligations. This includes VAT registration where required, applying the correct VAT rates, issuing VAT-compliant invoices, maintaining appropriate accounting records, and filing periodic VAT returns in accordance with Finnish and EU VAT rules.
