Finnish VAT rates and VAT compliance
Finland VAT
The Finnish value added tax (VAT) system consists of a standard higher rate of 24% 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 24% 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
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).
Other resources
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