ALV (VAT): Finnish value-added tax guide
Value-added tax in Finland; often shown on invoices and receipts.
Detailed explanation
Value-added tax is collected at each stage of the supply chain, from production to final sale. Businesses charge VAT on their sales and can deduct the VAT they paid on their business purchases. The difference is remitted to the Finnish Tax Administration (Verohallinto). For consumers, VAT is typically included in the displayed price, so what you see on the shelf is what you pay.
In Finland, businesses with annual revenue exceeding a certain threshold must register for VAT. Once registered, they are required to file periodic VAT returns (monthly, quarterly, or annually depending on turnover) and keep detailed records of all transactions. Businesses below the threshold can voluntarily register if it benefits their operations, particularly if they have significant VAT-deductible expenses.
Current VAT rates in Finland
- •25.5%
- •Standard rate (most goods and services)
- •increased from 24% in September 2024
- •14%
- •Food, animal feed, restaurant services
- •10%
- •Books, newspapers, medicines, public transport, accommodation, cultural events
- •0%
- •Some exports and international services
How it affects expats
- •As a consumer: Prices in shops and restaurants typically include VAT, so no extra calculation needed
- •As a freelancer or entrepreneur: You must register for VAT if your annual turnover exceeds approximately 15,000 euros
- •Starting a business: VAT registration can be done through the YTJ business information system when registering your company
- •Tax refunds: Non-EU residents may be eligible for VAT refunds on purchases over 40 euros when leaving Finland
How to register for VAT
- Register your business through the YTJ (Business Information System) at ytj.fi
- Complete the VAT registration section when filing your startup notification
- Receive your VAT number (same as your Business ID with "FI" prefix)
- Begin charging VAT and filing returns through OmaVero
Related terms
- •Business ID (Y-tunnus) — A unique identifier for companies and organizations in Finland
- •OmaVero (MyTax) — The Finnish Tax Administration's online service for taxes, filings, and messages
- •YEL — Pension insurance for self-employed people
Related Taxes Terms
OmaVero (MyTax)
The Finnish Tax Administration's online service for taxes, filings, and messages.
Tax at source (Lähdevero)
A withholding tax often applied to non-residents; rules depend on your tax status and income type.
Tax card (verokortti)
Shows your withholding rate; your employer uses it to withhold the correct tax.
Tyel: employee pension insurance in Finland
Employee pension insurance in Finland; employers arrange it for employees.