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VAT (ALV) for businesses in Finland

Understand VAT registration thresholds, rates, reporting requirements, and EU trade rules for businesses operating in Finland.
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VAT overview for businesses

Value Added Tax (arvonlisävero, ALV) is a consumption tax applied to most goods and services in Finland. Businesses with annual revenue above the threshold must register for VAT, charge it on sales, and file regular VAT returns with the Finnish Tax Administration (Vero).

  • The standard VAT rate in Finland is 25.5% (increased from 24% in September 2024)
  • VAT registration is mandatory when annual revenue exceeds EUR 20,000
  • VAT returns are filed monthly, quarterly, or annually depending on turnover

Registration and threshold

VAT registration requirements depend on your business turnover and activities.

  • Mandatory VAT registration when annual turnover exceeds EUR 20,000
  • Voluntary registration is possible below the threshold and can be beneficial
  • Register through the YTJ service (ytj.fi) or include it in your initial company registration
  • Some activities are VAT-exempt regardless of turnover (e.g., healthcare, education)

VAT rates in Finland

Finland applies different VAT rates depending on the type of goods or services.

  • Standard rate: 25.5%: applies to most goods and services
  • Reduced rate: 13.5% - applies to food, restaurant and catering services, books, medicines, passenger transport, accommodation, and cultural and sports services
  • Reduced rate: 10% - applies to newspapers and periodicals
  • Zero rate (0%): applies to certain international services and exports

VAT reporting and payment

Businesses must file VAT returns and pay the net VAT to the Tax Administration on a regular schedule.

  • Monthly filing is required for businesses with annual revenue over EUR 100,000
  • Quarterly filing is available for businesses with revenue under EUR 100,000
  • Annual filing is possible for very small businesses under EUR 30,000
  • Returns are filed through the MyTax (OmaVero) online service

VAT and EU trade

Special VAT rules apply to trade between EU member states.

  • Intra-EU sales of goods to VAT-registered businesses are zero-rated (reverse charge)
  • Sales to EU consumers may require registration in the customer's country or use of the OSS scheme
  • Sales to VAT-registered businesses in other EU countries are reported monthly in the EU sales list (yhteenvetoilmoitus); EUR 10,000 is the EU-wide distance-sales threshold for sales to consumers (OSS)
  • Imports from outside the EU are subject to Finnish VAT at customs

Key considerations

Important VAT-related points for businesses in Finland.

  • Consult an accountant (tilitoimisto) to ensure correct VAT handling from the start
  • Keep all receipts and invoices, VAT on business purchases is deductible
  • Late filing or payment results in penalty interest and possible late-filing fees
  • Monitor EU VAT rule changes, as thresholds and schemes are updated periodically

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