Finnish VAT rates and VAT compliance

As an EU member state, Finland follows EU rules on value-added tax (VAT) compliance. Finnish VAT is administered by the Finnish Tax Administration (Verohallinto).

Finland applies a standard VAT rate alongside reduced rates and zero-rating for specific goods and services.

Businesses registered for VAT in Finland must apply the correct VAT rate to taxable supplies and remit the tax to the Finnish Tax Administration by submitting periodic VAT returns.

Some supplies are exempt from VAT in Finland. These commonly include:

• Certain financial and insurance services
• Healthcare and medical services
• Education and vocational training
• Certain cultural and non-profit activities
• Residential rental of immovable property

Exempt supplies do not generate output VAT and generally do not allow recovery of input VAT related to those activities.

A VAT number is required for businesses carrying out taxable activities in Finland.

Finnish-established businesses must register for VAT once annual taxable turnover exceeds EUR 15,000 within a financial year. Below this threshold, registration is not mandatory unless specific taxable transactions trigger compulsory registration.

Non-established (foreign) businesses making taxable supplies in Finland must generally register for VAT from the first taxable supply unless the reverse-charge mechanism fully applies. There is no turnover threshold for nonresidents.

For cross-border B2C supplies of goods and services within the EU, the EU One-Stop Shop (OSS) threshold of EUR 10,000 applies. Once exceeded, VAT must be charged in the member state of consumption, and the supplier may register locally or elect to use the OSS scheme.

Get more information on VAT registration in Finland.

VAT-registered businesses in Finland must file periodic VAT returns. Filing frequency depends on turnover:

• Monthly: Default for most VAT-registered businesses.
• Quarterly: Available to smaller businesses with lower annual turnover.
• Annually: Available for very small businesses below certain turnover thresholds.

Returns include output VAT on sales and recoverable input VAT on purchases.

In addition to VAT returns, businesses may also be required to submit:

• EC Sales Lists (EU Sales Lists)
• Intrastat declarations (for intra-EU goods movements above thresholds)

All filings are submitted electronically through the Finnish Tax Administration’s MyTax portal.

Get more information on VAT returns in Finland.

Foreign businesses storing goods in Finland must consider VAT registration if those goods are held for sale.

Holding inventory in Finland for resale typically triggers VAT registration obligations. Imports from outside the EU may also trigger VAT registration, particularly where the foreign business acts as importer of record.

Finland applies EU call-off stock simplification rules in line with the EU VAT Directive.

VAT is generally payable on the importation of goods into Finland.

• Import VAT is accounted for through the VAT return rather than paid directly to customs for VAT-registered businesses.
• VAT-registered businesses may recover import VAT as input VAT if the goods are used for taxable activities.

Foreign businesses supplying digital services (telecommunications, broadcasting, and electronically supplied services) to Finnish consumers must charge VAT once the EUR 10,000 EU-wide B2C threshold is exceeded unless they elect to use the One-Stop Shop (OSS) scheme.

The standard VAT rate of 24% generally applies. Businesses must register for Finnish VAT or use OSS depending on their cross-border supply model.

EU-established businesses may reclaim Finnish VAT through the EU VAT refund procedure via their home tax authority, generally by 30 September of the following year.

Non-EU businesses may reclaim Finnish VAT under the 13th Directive refund procedure, subject to reciprocity and documentation requirements.

Some foreign businesses making only reverse-charge supplies may not be required to register locally and may instead rely on simplified recovery mechanisms.

Finland applies zero-rating to qualifying exports of goods and certain services supplied outside the EU. Zero-rating allows VAT to be charged at 0% while preserving the right to recover related input VAT, provided documentary requirements are met.

Intrastat declarations monitor intra-EU trade in goods. Finnish VAT-registered businesses must submit Intrastat filings if annual thresholds set by the Finnish statistical authorities are exceeded.

• Reporting is typically monthly once thresholds are exceeded.
• Filings include commodity codes, values, quantities, and partner member state details.
• Submissions are made electronically through the designated statistical reporting systems.

Finland requires EC Sales Lists for supplies of goods and certain services to VAT-registered customers in other EU member states.

Details typically include:

• Customer VAT identification numbers
• Total value of goods or services supplied
• Transaction type

ESLs must be filed electronically with the Finnish Tax Administration, generally on a monthly basis.

Businesses must issue VAT-compliant invoices that include:

• Supplier and customer details
• VAT number(s)
• Description of goods or services
• VAT rate(s) and VAT amount

Finland does not currently operate a real-time invoice clearance system for VAT purposes.

Time-of-supply rules:

• Goods: VAT generally becomes chargeable when the goods are delivered or when the invoice is issued, whichever occurs first.
• Services: VAT is generally due when the service is supplied or when payment is received, depending on the circumstances.
• Imports: VAT is due at the time of import but is typically accounted for through the VAT return.

VAT records must generally be retained for six years. VAT returns and payments are generally due by the 12th day of the second month following the reporting period.