- Finland will lower its reduced VAT rate from 14% to 13.5% starting 1 January 2026.
- The new rate will apply to food, catering, transport, accommodation, medicines, cultural services, books, sports, and some broadcasting services.
- The change will amend relevant VAT laws and align VAT treatment across Åland, mainland Finland, and the EU.
- The proposal is part of the 2026 State Budget and is under parliamentary review, with expected adoption by late 2025.
- Businesses should prepare for the change in Q4 2025 to ensure a smooth transition.
Source: marosavat.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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