Arvonlisävero (VAT/ALV)
Finland's value-added tax applied to goods and services, with rates of 25.5%, 13.5%, and 10%.
Finland's value-added tax (VAT), abbreviated as ALV, applied to the sale of goods and services.
What it means
Arvonlisävero, commonly abbreviated as ALV, is Finland's version of VAT (value-added tax). It is a consumption tax included in the price of most goods and services. Finland has three VAT rates: the standard rate of 25.5% applies to most goods and services, a reduced rate of 13.5% applies to food, restaurants, books, medicines, passenger transport, and accommodation, and a lower rate of 10% applies to newspapers and periodicals. Some services like healthcare, education, and financial services are VAT-exempt.
Why it matters for internationals
VAT is already included in the displayed price of goods in Finland, so unlike some countries, you pay exactly what you see on the price tag. Understanding VAT rates helps with budgeting, especially when comparing costs with your home country. If you start a business in Finland, you must register for VAT when your annual revenue exceeds 20,000 euros and charge ALV on your invoices. Non-EU visitors can claim tax-free refunds on purchases over 40 euros when leaving Finland.
Key details
- Standard rate: 25.5% on most goods and services (raised from 24% in September 2024)
- Reduced rate: 13.5% on food, restaurant/catering services, books, medicines, passenger transport, and accommodation
- Lower rate: 10% on newspapers and periodicals
- Tax-free shopping: Non-EU residents can claim VAT refunds on single purchases over 40 euros through Global Blue or similar services
- Business obligation: Companies must register for VAT and file periodic returns when annual turnover exceeds 20,000 euros
Related terms
- Tuloveroprosentti: personal income tax rate
- Verotoimisto: tax office handling VAT registration
- Tulli: customs, which collects VAT on imported goods