Finland Lowers Reduced VAT Rate to 13.5% Effective January 2026: Updated Tax Guidance Released

• Finland’s reduced VAT rate will decrease from 14% to 13.5% effective 1 January 2026.
• The Finnish Tax Administration updated its guidance for billing service companies and workers to reflect this change, without altering underlying VAT principles.
• The new reduced rate applies to foodstuffs, restaurant and catering services, passenger transport, and certain sports and physical activity services.
• The guidance includes updated examples and VAT calculation illustrations, and businesses must ensure invoicing reflects the new rate from the effective date.
• The updated guidance replaces the previous 2024 version and is effective from 1 January 2026.

Source: globalvatcompliance.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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