Finnish VAT rates and VAT compliance

Finnish VAT rates

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

Finnish VAT compliance

Once Finnish VAT registered, foreign companies must comply with the local rules on accounting, processing invoices and other measures.  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.
  • Up keep of VAT books and other records to support and VAT returns, Intrastat and ESL declaration
  • Processing of credit notes and other corrections.
  • Use of approved foreign currency rates.

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).

For most goods, it is the time of delivery or passage of title.  For services, it is the completion of the service.

Need help with your Finnish VAT compliance?

Researching Finnish VAT legislation is the first step to understanding your VAT compliance needs. Avalara has a range of solutions that can help your business depending on where and how you trade.