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Finland raises VAT registration threshold

  • VAT
  • 12 February 2015 | Richard Asquith

Finland raises VAT registration threshold

The new Finnish 2015 budget has raised the annual VAT registration threshold for resident businesses from €8,500 to €10,000.

VAT registration threshold on non-resident entrepreneurs

The threshold does not apply to foreign, non-resident traders from the EU or any other country. They are still required to register with the Finnish authorities if they are providing taxable supplies that trigger a foreign VAT registration. This includes: importing goods into Finland from outside the EU; holding warehouse stocks.

For sellers to consumers via the internet, there is a special EU distance selling VAT threshold regime. This enables e-commerce merchants to initially sell under the domestic VAT number, charging the VAT rate of their home country. Once they go over Finland’s distance selling threshold, €35,000 annual sales to Finnish consumers, they must register for Finnish VAT and report to the tax office.


VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.