VATupdate

VAT Rates in Finland

 

Quick overview

Standard Rate Reduced Rates
24% 10%, 14%

The local name for VAT in Finland is “Arvonlisävero” (ALV).

There are basically 2 VAT rates in Finland:

  • Standard VAT rate is 24%
  • Reduced VAT rate is 10% and 14%

Recent developments

For more information about (recent) rate change developments in Finland, please click HERE.

Due to COVID-19, the tax exemption for goods needed to combat covid-19 is applicable till April 30, 2021.

Standard rate: 24%

This rate applies for all transactions that take place in Finland, unless an exception applies (such as a reduced rate, the zero rate or an exemption, or a reason to treat the transaction as outside scope of VAT).

Zero rate (0%)

No goods and services are subject to specific 0% VAT rate besides the typical ”Exemptions”.

Reduced rate: 10%

  • Services enabling Sporting activities
  • Books and magazines (printed and digital versions)
  • Medicine
  • Passenger transport
  • Accommodation and harbor facilities
  • Compensation from copyrights received by a copyright organization that represents the copyright holders
  • Newspapers and periodicals (printed and digital versions)
  • Admission fees to theatre, circus, music and dance performances, exhibitions, sports events, amusement parks, museums and cinemas etc
  • Sale of art work when the supplier owns the rights to the work (and in certain other situations)

Reduced rate: 14%

  • Most foodstuffs including restaurant and catering services (food served at restaurants) – Standard rate is still applicable for alcohol and tobacco
  • Animal feed
  • Drinking water

For a description of how the VAT rates are structured in the European Union, please see here.  The European Commission has also made an EU VAT rate database available where you can find the applicable VAT rate by entering the CN/CPA code of the goods respectively services (you can find more information here).

A global VAT/GST rate overview can be found here (note this is a work in progress).

This post was last updated on 8 April 2021.

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