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Higher VAT rates in Finland from September 2024
The Finnish government has decided to increase VAT rates.
The change is expected to take effect on 1 September 2024. The decision was taken with the objective of stabilizing public finances and enhancing their robustness.
Below you will find a summary of the current Value Added Tax (VAT) rates in Finland, along with the rates that will apply from 1 September 2024.
STANDARD VAT RATE
the current rate in effect until August 31st 2024: 24%
the new rate, which will take effect on September 1st 2024: 25.5%
goods and services subject to specific VAT rates: applies to all goods and services for which no exemption or one of the reduced VAT rates is applied.
REDUCED VAT RATE
the current rate in effect until August 31st 2024: 14%
the new rate, which will take effect on September 1st 2024: 25.5%
goods and services subject to specific VAT rates: applies to the particular food items high in sugar (chocolate, sweets).
REDUCED VAT RATE
the current rate in effect until August 31st 2024: 14%
the new rate, which will take effecton September 1st 2024: 14%
goods and services subject to specific VAT rates: applies to catering and restaurant services
REDUCED VAT RATE
the current rate in effect until August 31st 2024: 10%
the new rate, which will take effecton September 1st 2024: 10%
goods and services subject to specific VAT rates: applies to pharmaceutical products, accommodation, books and cultural events.
Please be advised that the Finnish government has also updated the VAT return form. The new declaration (online form) will include boxes for transactions at both current and future VAT rates, which will be effective from 1 September 2024.
It is also worth keeping in mind that the Finnish Government is considering reclassifying products subject to the 10 and 14% rates. Any changes would be planned for 2025. We will keep you updated on any changes and decisions made.
The official guidelines for VAT rates in Finland can be found at this website.
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Author: Marta Łuczak, VAT Compliance Specialist at EFF
