Finnish VAT rates and VAT compliance - Avalara

Finland VAT

The Finnish value added tax (VAT) system consists of a standard higher rate of 25.5% and reduced rates of 14% and 10%. There is also a zero rating for a number of goods and services in the country.

The European Union (EU) requires the minimum standard rate to be above 15%, and sets some broad rules on which goods may be classified as the reduced or nil rates. The Finnish government is therefore free to set the higher rate. The 25.5% standard rate in Finland is higher than the EU average of 21%.

Any non-resident VAT-registered company (including those from the EU) must use the Finnish rates and will be held to account for any shortfalls in VAT charged.

Finland VAT rates

Rate	Type	Which goods or services
25.5%	Standard	All other taxable goods and services
14%	Reduced	Food and beverages intended for human consumption; certain restaurant and catering services; feed and compound feed; passenger transport; certain medicinal products; menstrual pads, incontinence pads, and children’s nappies; books in a physical format or delivered electronically; access to sporting events or live streaming of such events or both; use of sports facilities and provision of sports or physical education classes; access to shows, theatres, circuses, fairs, amusement parks, concerts, museums, zoos, cinemas, exhibitions, and similar cultural events
10%	Reduced	Pharmaceutical products; domestic passenger transport; newspapers and magazines in a physical format or delivered electronically; admission to cultural events/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-profit making organisations; intra-community/international transport; some taxation of gold ingots, bars and coins; certain works of art, collectors items/antiques

Exemptions

There are a small number of VAT exemptions in Finland. These include healthcare, education, and financial and insurance services. A zero rating in these sectors is designed to keep critical services accessible.

Registration threshold

For domestic businesses, the registration threshold is set at €15,000. Foreign businesses selling into the country must register if their annual sales to Finnish consumers exceed €10,000.

Finnish VAT compliance

Once registered for VAT in Finland, foreign businesses must comply with Finnish rules on accounting, processing invoices, and other obligations. These include:

Issuing invoices with the disclosure details outlined in the Finnish VAT Act
Correct invoicing of customers for goods or services in accordance with the Finnish time of supply VAT rules
Use of electronic invoices which must be in accordance with the latest Invoicing Directive
Upkeep of VAT books and other records to support VAT returns, Intrastat and ESL declaration

What is the tax point for Finnish VAT?

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).

Get help solving your VAT challenges

Other Pages:

Finnish VAT rates and VAT compliance

EU VAT on digital services

Other Resources

Avalara Tax Changes 2025

Explore global VAT updates, new e-invoicing mandates, and key U.S. sales tax changes in this annual Avalara report.

International tax and compliance solutions

Read the report to learn about key industry trends, emerging issues, and challenges faced by cross-border sellers and shippers.

Avalara Cross-Border

Manage international tax with cross-border solutions for VAT, HS code classification, trade restrictions, and more.

More resources

Ready to see what Avalara can do?

Schedule a demo to see our solution.

Request a demo