Finland: Comprehensive VAT Country Guide (2026)

2. Local VAT Term

3. VAT Rates in Finland

• 3.1 Standard Rate (25.5%) – The standard VAT rate in Finland is currently 25.5%. This is above the EU average and is among the higher VAT rates in the EU. The standard rate applies to the vast majority of goods and services unless a specific reduced rate or exemption applies. [vero.fi] [avalara.com]
  • Recent Change: The standard rate was raised from 24% to 25.5% on 1 September 2024, as part of fiscal measures in the 2024 budget. This was the first change in the standard rate since 2013 and brought Finland’s standard VAT to its highest ever level. Businesses needed to update their pricing and accounting systems to reflect the 25.5% rate for all standard-rated transactions from that date. [vero.fi] [innovatetax.com]
• 3.2 Reduced Rates (13.5% and 10%) – Finland currently has two reduced VAT rates:
  • 13.5% Reduced Rate: Effective 1 January 2026, the primary reduced VAT rate is 13.5%. This rate was lowered from 14% to 13.5% as of 2026, following a government budget decision to slightly reduce consumer costs. [vero.fi], [vero.fi]
    What is taxed at 13.5%? A wide range of items and services that previously fell under the 14% (and earlier 10%) categories are subject to 13.5% VAT. Key examples include: [vero.fi], [vero.fi]
    • Food and non-alcoholic beverages (groceries, ingredients, spices, etc.).
    • Restaurant and catering services (excluding alcohol served in restaurants which remains standard rated). [vero.fi]
    • Animal feed and related additives. [vero.fi]
    • Passenger transport within Finland (e.g. bus, taxi, train, domestic flights). [vero.fi]
    • Accommodation services (hotel and similar lodging services). [vero.fi]
    • Books – both printed and e-books (electronic publications). [vero.fi]
    • Pharmaceutical products (medicines) for human use. [vero.fi]
    • Sanitary products such as menstrual pads and baby diapers (recently moved from 24% down to 14%, and thus to 13.5%). [vero.fi], [vero.fi]
    • Use of sports facilities and fitness services, including gym and sports class fees. [vero.fi]
    • Admissions to cultural, entertainment, or sporting events, e.g. cinema tickets, theatre, concerts, museums, amusement parks, fairs, etc., including live-streaming of such events. [vero.fi]
    • Fees of performing artists and athletes (when the performer is VAT-registered for those activities). [vero.fi]
    • (From 2026): Public broadcasting services (TV licenses/fees) have also shifted into the 13.5% rate category. [vero.fi], [vatupdate.com]
    These categories reflect changes in 2025 reforms: many items formerly taxed at 10% were moved to 14% in January 2025, then to 13.5% in 2026. For instance, passenger transport, accommodation, books, and certain cultural/sports events were increased from 10% to 14% in 2025. Sanitary protection products and baby diapers moved from the standard rate down to 14% in 2025, now at 13.5%. These changes aimed to simplify the rate structure and adjust revenue. [vero.fi] [vero.fi], [vero.fi]
  • 10% Reduced Rate: Finland retains a second, lower reduced rate of 10%, but as of 2026 this applies only to a very limited set of items. After the 2025 reforms, the 10% rate is now limited to newspapers and periodicals (including e-newspapers/e-magazines). Pharmaceuticals, passenger transport, hotel accommodation, and most other items that were previously at 10% have been reclassified to the 14%/13.5% band from 2025 onward. Thus, currently: [vero.fi], [vero.fi]
    • 10% VAT: applies mainly to newspapers and magazines (including their electronic versions). Until the end of 2025, public broadcasting fees were also at 10%, but these moved to 13.5% in 2026. Some sources may still reference pharmaceuticals or passenger transport at 10%, but those are now at 13.5% due to the 2025 changes. [vero.fi] [vero.fi], [vero.fi]
• 3.3 Zero-Rated Supplies (0% VAT) – Zero-rated (0% VAT) supplies in Finland are taxable supplies on which VAT is charged at 0%, meaning no VAT is payable but suppliers can still deduct input VAT related to these sales. Key categories of zero-rated supplies include: [vero.fi], [vero.fi]
  • Exports of goods to destinations outside the EU. [vero.fi]
  • Intra-Community supplies of goods to VAT-registered buyers in other EU countries (these are 0% in Finland, with the buyer subject to acquisition VAT in their country). [vero.fi]
  • International transport of passengers or goods directly to or from points outside the EU (e.g. flights or shipping from Finland to non-EU destinations). [vero.fi]
  • Certain sea-going vessels and related services – sales, leasing, and work on qualifying vessels (e.g. ships operating in international waters). [vero.fi]
  • Supplies under VAT warehouse arrangements (designated operations under VAT warehousing rules, see section 15.7). [vero.fi]
  Note: Although these sales carry a 0% VAT rate, they are classified as taxable supplies (not exemptions). This distinction allows the seller to reclaim input VAT incurred in making the zero-rated supplies. Zero rating is thus different from exemption (discussed below), where input VAT deduction is generally not allowed. [vero.fi]
• 3.4 Exempt Supplies (VAT-exempt) – Exempt supplies are outside the scope of VAT collection, meaning no VAT is charged, and input VAT on related purchases is typically not deductible. Finland’s VAT Act, in line with the EU VAT Directive, specifies various activities that are exempt from VAT in order to serve public interest or other policy objectives. Major VAT-exempt sectors include: [vero.fi], [avalara.com]
  • Health care and medical services (medical treatment by licensed professionals and medical institutions). [vero.fi]
  • Dental and healthcare services (basic medical/dental care is exempt; however, elective cosmetic treatments by medical professionals are taxable at 25.5%). [vero.fi], [vero.fi]
  • Social welfare and care services.
  • Education – general education, vocational training, university courses, and basic school education are exempt from VAT. [vero.fi]
  • Financial and insurance services – banking services (e.g. loans, credit, transfers) and insurance premiums are exempt.
  • Sale or lease of real estate – the sale of real property and rental of housing or commercial real estate are generally exempt, unless the landlord has opted for taxation (see Section 15.8).
  • Postal services (public postal services and stamps for postal use). [innovatetax.com]
  • Lotteries and gambling (incl. lottery tickets, betting, sports betting, etc.). [vero.fi]
  • Cultural and sporting services provided by non-profit organizations to their members (often covered by social exemptions).
  Note: Although these activities are exempt from VAT, businesses engaged only in VAT-exempt sales do not register for VAT in Finland. They cannot charge VAT on their sales and cannot recover input VAT on their purchases. However, certain sales that are legally “exempt” but with a right to deduction (i.e., zero-rated as described) are treated differently: these still allow input VAT recovery. It’s critical to distinguish between exempt (no VAT, no input deduction) and zero-rated (0% VAT, but input VAT can be deducted) supplies in Finnish and EU VAT law. [vero.fi]

4. VAT Rates Summary and Recent Changes

• Standard Rate: 25.5% – Applies to most goods and services. Increased from 24% to 25.5% on 1 September 2024 as part of budgetary changes, marking Finland’s standard rate above the EU average (around 21% in the EU). [vero.fi] [avalara.com]
• Reduced Rate: 13.5% – Broad reduced rate (formerly 14%) covering numerous categories such as foodstuffs, transport, accommodation, cultural services, etc. Lowered from 14% to 13.5% as of 1 January 2026. [vero.fi], [vero.fi]
• Reduced Rate: 10% – Narrow reduced rate now mainly restricted to printed and e-newspapers and periodicals. (Before 2025, the 10% rate applied to more items, all of which except newspapers/magazines have been moved to the higher band.) [vero.fi]
• Zero Rate (0%) – Certain transactions taxed at 0% (exports, intra-EU sales, international transport, qualifying vessels, etc.), allowing input VAT recovery. [vero.fi]
• Exempt (Out-of-scope) – Sectors like health, education, insurance, etc., where no VAT applies and input VAT is generally non-recoverable. [avalara.com]

• Sept 1, 2024: Standard rate increased from 24% to 25.5%. [vero.fi]
• Jan 1, 2025: Reclassification of reduced rate items – Most goods/services that were previously at 10% moved to 14% (e.g. passenger transport, hotel accommodation, books, etc.), leaving only newspapers, magazines, and public broadcasting at 10%. Additionally, sanitary protection products and children’s diapers were moved from 24% to 14%. [vero.fi]
• Jan 1, 2026: Reduced rate lowered to 13.5% (from 14%). Public broadcasting services also moved from 10% to 13.5%, meaning from 2026 the 10% rate remains only for newspapers and magazines. [vero.fi] [vero.fi], [vero.fi]

5. VAT Number Format

• Finnish businesses must display their VAT number (ALV-numero) on invoices and VAT returns. The notation “FI” prefix is used for cross-border transactions and in the EU’s VIES system for validating VAT numbers. For domestic use, the Business ID with the hyphen is commonly used.
• Example: If a company’s Business ID is 1234567-8, its VAT number for EU trade is FI12345678. The VIES online system can be used to verify Finnish VAT numbers for intra-EU trade compliance.

6. VAT Registration Requirements

• 6.1 Registration Thresholds for Resident Businesses:
  As of 1 January 2025, the annual turnover threshold for mandatory VAT registration of Finnish-established businesses is €20,000 (increased from €15,000). This means: [vero.fi], [vero.fi]
  • If a Finnish business’s taxable turnover in a calendar year exceeds €20,000, it must register for VAT (and charge VAT on its sales).
  • If turnover is €20,000 or below, the business is considered small scale and is not obliged to register (it can remain outside the VAT system). [vero.fi], [vero.fi]
  The calculation of turnover for this threshold includes all VAT taxable sales (including zero-rated exports and intra-EU sales), but excludes sales of fixed assets and genuine exempt services (like exempt financial or health services). The threshold is monitored on a calendar year basis (with a special pro-rating rule for businesses that don’t operate for a full year). If a company crosses €20,000 in a given year (considering also the previous year’s turnover), it must immediately apply for VAT registration from the date the threshold was exceeded. No retroactive registration to the start of the year is required; instead, VAT applies from the date the threshold is passed. [vero.fi], [vero.fi] [vero.fi]
  Example: A Finnish company without prior VAT registration had €13,000 turnover in 2024 and expects similar sales in 2025. If on 10 October 2025 its cumulative sales exceed €20,000, VAT registration becomes mandatory from 10 Oct 2025 for future sales. Sales made before that date remain outside the scope of VAT, but the sale that caused the threshold exceedance (and any subsequent sales) are fully VAT-taxable. [vero.fi], [vero.fi] [vero.fi]
  Voluntary Registration: Small businesses below the €20,000 threshold may opt to register voluntarily for VAT to reclaim input VAT and appear as VAT-registered to customers. Voluntary registration is granted provided the business engages in taxable economic activities. Once registered, all VAT rules apply (e.g., charging VAT on sales, filing returns) even if turnover remains below the threshold. Typically, a voluntarily registered business must stay in the system for at least the remainder of the year and the next year if they exceed the threshold in one year (deregistration for falling below the threshold can only take effect at the end of a calendar year). [vero.fi], [vero.fi] [vero.fi]
• 6.2 Non-Resident Businesses (No Finnish Establishment):
  Foreign companies without a fixed establishment in Finland generally have no threshold – if they make taxable supplies in Finland, they must register from their first sale (unless all such sales are subject to reverse charge or covered by a special scheme like OSS/IOSS, explained below). Important points for non-residents: [avalara.com], [avalara.com]
  • EU-based businesses: For intra-EU B2B services supplied into Finland, usually the reverse-charge applies (making the Finnish business customer account for the VAT), so the foreign supplier need not register for those B2B services. Similarly, as of 2017, Finland no longer requires foreign (non-established) suppliers to register for B2B services; the Finnish customer can self-account under reverse charge in most cases. However, if a foreign EU business is making distance sales of goods to Finnish consumers, the EU-wide OSS (One Stop Shop) scheme can be used once the EU thresholds are exceeded (see section 18). [avalara.com]
  • Non-EU businesses: A non-EU business making any taxable supplies in Finland (B2C services or goods delivered within Finland) must register for VAT unless it can use a special scheme (like OSS for digital services or IOSS for low-value imports). There is no monetary threshold for non-EU companies – e.g., selling physical goods warehoused in Finland to local consumers requires registration from the first sale. For electronic services to consumers, non-EU suppliers can avoid Finnish registration by using the Non-Union OSS (formerly MOSS) scheme to report VAT to all EU states via a single registration (see section 17). [avalara.com]

• Domestic small business threshold: €20,000/year (no VAT if below, unless registering voluntarily). [vero.fi]
• EU cross-border (distance selling & e-services) threshold: €10,000/year across all EU (above which use OSS or register locally). [avalara.com]
• Non-resident (no Fin establishment): No general threshold; must register if making taxable supplies in Finland, except where reverse charge or special schemes apply. [avalara.com]

7. VAT Grouping Rules

• Non-taxable persons can be included in a Finnish VAT group (e.g., a holding company with no taxable sales) if they are part of a financial/insurance group. This aspect was challenged by the European Commission but ultimately upheld by the European Court of Justice in case C-74/11 (Commission v Finland) in 2013. The court confirmed that Member States may limit VAT grouping to certain sectors (like finance/insurance) and include entities that are not themselves taxable persons. [vatupdate.com] [vatupdate.com], [vatupdate.com]
• Other industries in Finland cannot form VAT groups. Unlike some EU countries, general VAT grouping for all sectors is not available in Finland (outside the specific financial sector rule). Companies in sectors other than finance/insurance must register separately and cannot take advantage of a single VAT grouping registration.

8. VAT Recovery for Foreign Businesses

• EU businesses (8th Directive refunds): If an EU business (with no fixed establishment in Finland) incurs Finnish VAT on local expenses (e.g., Finnish hotel bills, local purchases for its activities), it can claim a VAT refund under EU Directive 2008/9/EC (previously known as the 8th Directive procedure). The claim is submitted electronically through the business’s home country tax authority portal and forwarded to Finland’s Tax Administration for processing. Key conditions include not having any VAT-liable sales or fixed establishment in Finland during the refund period. The application deadline is September 30 of the year following the year of the expenses (i.e., for 2025 expenses, apply by 30 Sept 2026). If approved, Finland will refund the VAT on allowable costs (subject to similar restrictions on certain items as for Finnish businesses – see Section 16). [vero.fi], [vero.fi] [vero.fi]
• Non-EU businesses (13th Directive refunds): Businesses established outside the EU can also reclaim Finnish VAT on local expenses via the 13th Directive (Council Directive 86/560/EEC) refund scheme, provided they are not making taxable supplies in Finland. Finland does not require reciprocity agreements for VAT refunds to non-EU businesses (meaning refunds are granted even if the non-EU country doesn’t reciprocally refund VAT to Finnish firms). Notably, Finland does not require non-EU claimants to appoint a fiscal representative for the refund process. Key points: [taxation-c….europa.eu], [taxation-c….europa.eu] [taxation-c….europa.eu]
  • The application must be submitted within 6 months of the end of the calendar year of the expenses (deadline June 30 of the following year). [taxation-c….europa.eu]
  • Claims can cover a period between 3 months and 1 year (e.g., you can claim January–June, or full calendar year). [taxation-c….europa.eu]
  • Minimum claim amounts: €400 for claims covering less than a calendar year; €50 if the claim is for a full year or remaining part of year. [taxation-c….europa.eu]
  • The claim must be sent to the Finnish Tax Administration (usually by submitting Form VAT refund application 9550 directly to Finland, or via an online portal if available). [taxation-c….europa.eu], [taxation-c….europa.eu]
  • Supporting documents typically required: proof of business status (a certificate from home tax authority), original or electronic invoices, and possibly a Power of Attorney if using an agent. [taxation-c….europa.eu]
  • Processing time: Finnish authorities aim to process non-EU refund applications within 4–6 months. [taxation-c….europa.eu]
  • Allowable and non-allowable expenses: Finland follows the same rules for non-EU refunds as for EU refunds and local businesses. Generally, VAT on business-related goods and services can be refunded, whereas VAT on items like private or employee expenses, entertainment (representation) costs, purchase and running costs of passenger cars for private use, etc., are not refundable (these are standard EU limitations – see Section 15.1). [taxation-c….europa.eu]

• EU companies use the electronic EU VAT Refund system (deadline Sept 30).
• Non-EU companies use Finland’s 13th Directive process (deadline June 30), with no reciprocity or fiscal rep requirement in Finland. [taxation-c….europa.eu], [taxation-c….europa.eu]

9. Fiscal Representative Requirements

• No general requirement for a fiscal representative. Foreign businesses (whether EU or non-EU) are not required to appoint a fiscal representative in order to register for VAT in Finland. Non-resident companies can register directly with the Finnish Tax Administration for a VAT number without needing a local fiscal agent. This is in line with Finland’s business-friendly approach; for instance, Finland does not require fiscal reps for non-EU companies in its VAT refund procedures either. [fintua.com], [fintua.com] [taxation-c….europa.eu]
• Liability and compliance: Since no mandatory fiscal rep is required, the foreign business itself is directly responsible for meeting all Finnish VAT obligations – including filing returns on time and paying VAT. Typically, companies handle this through their own accounting staff or by contracting a local accounting/tax firm as a service provider (even if not a formally appointed “fiscal representative”).
• Exception – Distance Sales using OSS/IOSS: If a foreign business (EU or non-EU) opts to use the One Stop Shop (OSS) or Import OSS (IOSS) to report Finnish VAT, then that business registers in a single EU Member State, and a fiscal representative might be required in that chosen state depending on its rules. For example, if a non-EU company registers for OSS in a particular member state that requires a rep, they would follow that state’s requirement (this is outside the Finnish national rules). However, within Finland’s national system itself, there is no requirement to have a tax representative.

10. Currency and Foreign Exchange (FX) Rules

• Invoicing Currency: VAT invoices in Finland can be issued in any currency, but the VAT amount must be stated in euros if the supply is taxable in Finland. This means that if you invoice a Finnish customer in, say, USD or SEK, you need to convert the VAT amount to EUR on the invoice using an acceptable exchange rate. [vero.fi], [vero.fi]
• Exchange Rate for VAT Purposes: When converting foreign currency amounts to euros for VAT, the exchange rate used should be the European Central Bank (ECB) rate or the rate published by the Finnish Customs for customs purposes, typically using the rate valid on the tax point date (date of supply or invoice date). Finnish VAT law aligns with the EU Directive, which allows using the latest ECB selling rate or other officially published rate on the date VAT becomes chargeable (or the last applicable rate). Businesses should apply a consistent method once chosen, and keep documentation of the rates used.
• Reporting and Filing in EUR: All amounts on the Finnish VAT return must be reported in euros (with the standard decimal format). If a business’s accounting is in a foreign currency, it must convert VAT-related figures to euros in its VAT filings.
• FX Gains/Losses: Fluctuations in currency values can result in gains or losses for the business, but these are normally treated as separate financial gains/losses for income tax purposes and do not adjust the VAT amount once the tax point is fixed and VAT is converted.
• No Notional Currency Scheme: Finland does not operate any special VAT accounting in foreign currency – everything is effectively tied to the euro. Thus, unlike some countries that pegged VAT to another currency historically, Finland’s VAT is fully euro-based.

11. VAT Law and Legal Framework

• The Finnish VATA implements EU VAT Directive 2006/112/EC into national law. As an EU member, Finland’s VAT rules must comply with the directive’s requirements on what is taxable, definitions of goods/services, place of supply, and allowable exemptions. The national law is aligned with these EU-wide rules, but Finland may exercise certain options/derogations permitted by the directive (e.g., VAT grouping limitations, small business schemes, etc.). [avalara.com]
• The VAT Act is supplemented by a VAT Decree (Arvonlisäveroasetus) that provides additional details on implementation (e.g., procedural aspects, invoice content, etc.). Together, the Act and Decree cover most rules businesses need to follow.
• The Ministry of Finance (Valtiovarainministeriö) is responsible for VAT legislation and high-level guidance, while the Finnish Tax Administration (Verohallinto) is responsible for day-to-day administration, issuing detailed regulations and guidance, and collecting the tax. The Tax Administration regularly publishes detailed guidelines, which are authoritative interpretations of the VAT Act (though not legally binding in the way the Act is). There are detailed guides on topics like invoicing requirements, VAT refunds, small business schemes, etc., often available in Finnish, Swedish, and sometimes English translation. [vero.fi], [vero.fi]
• Key features of the VAT Act: The law is divided into chapters aligning with typical VAT concepts:
  • Scope of tax and definitions (what is taxable, who is taxable, territory – includes the special status of Åland). [finlex.fi]
  • Taxable persons and small business relief (with the small business threshold provisions – recently updated to €20k as discussed above).
  • Place of supply rules (largely mirror EU rules, determining when a sale is considered made in Finland).
  • Tax rates (standard and reduced rates, and zero/exempt categories defined).
  • Tax point (time of supply) rules (when VAT becomes chargeable – see Section 13).
  • Deductions (the right to deduct input VAT and its limitations – see Section 15.1, 15.10).
  • Special schemes (e.g., margin schemes for second-hand goods, travel agents, investment gold, intra-EU simplifications like call-off stock – see Sections 15.2 and 15.3, etc.).
  • Administrative provisions (invoicing requirements – in VATA Chapter 209a-u, returns, payments, interest, penalties, etc.).
• Legal Language: The official text of the VAT Act is in Finnish and Swedish (Finland’s official languages). Unofficial translations to English exist (e.g. on Finlex up to 2002 amendments), but for precise legal interpretation, consulting the official Finnish/Swedish text or professional translations is recommended. [finlex.fi], [finlex.fi]
• Hierarchy: In case of conflict, EU law (the VAT Directive) takes precedence, but generally Finland’s law is designed to conform to EU rules. Finnish courts and the Tax Administration also consider rulings of the Court of Justice of the EU (CJEU) for VAT matters (e.g., the CJEU decision on VAT grouping C-74/11 as noted above, which influenced Finnish policy).

12. Tax Authorities

• Name and Website: Finnish Tax Administration (Verohallinto). The official English-language portal for businesses is accessible via https://www.vero.fi/en/businesses-and-corporations/. The site provides extensive resources on VAT, often in English (guides on registration, filing, VAT rates, etc.). [vero.fi], [vero.fi]
• MyTax (OmaVero) Portal: Finland has a comprehensive online tax portal called MyTax (OmaVero) for electronic tax services. VAT-registered businesses must use MyTax to file VAT returns, pay taxes, update registration details, and communicate with the Tax Administration. MyTax supports services in Finnish, Swedish, and to some extent English (some guidance is in English, though forms may be primarily in Finnish/Swedish). [vero.fi]
• Structure: Finland does not have separate state/province tax authorities – VAT is administered at the national level by Verohallinto. However, there are regional tax offices for local assistance. The Tax Administration also includes units focusing on tax audits and combating the shadow economy (e.g., enforcement of the receipt issuance obligation, see Section 20).
• Taxpayer Support: The Tax Administration provides guidance and support to businesses, including:
  • Guidance publications: Detailed guidelines on various VAT topics (registration, invoicing, VAT treatment of specific transactions, etc.). [vero.fi]
  • Helpdesk: for taxpayer queries and binding advance rulings (businesses can request a formal ruling on VAT treatment of proposed transactions for certainty). [vero.fi]
  • Language: Services are offered in Finnish and Swedish. Some support is available in English, but official processes and forms might need Finnish/Swedish (having local representation or language support can be helpful for non-Finnish speakers).
• Audits and Enforcement: The Tax Administration conducts periodic VAT audits and can impose penalties/interest for non-compliance (see Section 24). They also coordinate with other agencies to fight VAT fraud and the shadow economy (for example, through cross-checking invoices and requiring receipts in cash sales).

13. Scope of VAT (Taxable Transactions)

• 13.1 Supplies of Goods and Services in Finland: All sales of goods or services made in Finland by a taxable person in the course of business are subject to VAT. This includes any transfer of goods (tangible property) or provision of services for consideration (payment). The determination of whether a sale “takes place in Finland” is governed by place of supply rules (see below). If Finland is the place of supply, Finnish VAT applies. [finlex.fi]
• 13.2 Imports of Goods: Bringing goods into Finland from outside the EU (importation) is subject to Finnish VAT, typically at the border (or via postponed accounting – see Section 15.6). Import VAT ensures goods from non-EU countries face equivalent VAT as domestic goods. [finlex.fi]
• Intra-Community Acquisitions: Buying goods from another EU country, when the supplier is VAT-registered and the goods are shipped to Finland, constitutes an intra-Community acquisition. Such acquisitions are taxed in Finland at the applicable VAT rate, with the Finnish buyer usually accounting for VAT under reverse charge on their VAT return (with simultaneous input tax deduction if they are fully taxable). [vero.fi], [vero.fi]
• Self-supply (private use): If a business takes goods or services out of the business for private use, a self-supply is deemed to occur and VAT may be due (to prevent businesses from avoiding VAT by using business assets privately). An example in Finland’s law is taking immovable property-related services for private use or goods originally meant for taxable business now used privately. [finlex.fi]
• Specific Finnish scope rules: Finland’s legislation also taxes removal of goods from a VAT warehouse (if goods leave a VAT warehousing regime and enter free circulation in Finland, VAT is due; see Section 15.7). [finlex.fi]

Place of Supply Rules (Goods & Services)

• Goods (Domestic sales): Generally, goods are deemed supplied where they are located at the time of dispatch or delivery to the customer. For example, a sale of goods that begins in Finland (the goods are handed over or shipment originates in Finland to a domestic customer) is a supply in Finland and subject to Finnish VAT. If goods are sold and delivered from Finland to a buyer in another EU country (with the buyer’s VAT number), that’s an intra-Community supply (0% rated) in Finland and an acquisition in the destination country. Goods sold from Finland and exported outside the EU are zero-rated exports (taxable at 0%). Conversely, goods delivered to Finland from another country may be taxed as imports or acquisitions.
• Goods on Approval/Return: For goods supplied on a sale-or-return or consignment basis, the time and place of supply in Finland is typically when the customer accepts the goods or the approval period lapses. Until acceptance, the transfer may be treated as a consignment (not a completed sale). Finland follows EU “consignment stock/call-off stock” simplification rules for intra-EU transfers (see Section 15.2). Under these rules, if goods are moved to Finland for a known customer under a call-off arrangement, the transfer can be not treated as a taxable transaction until the customer “calls off” (takes ownership of) the goods, subject to meeting conditions. [avalara.com]
• Services – General rule (B2B/B2C): For business-to-business (B2B) services, the place of supply is generally where the customer is established (the standard “general B2B rule” per EU Directive). Thus, if a Finnish company provides services to a business customer in another country, typically no Finnish VAT is charged (the service is outside Finland’s scope; the foreign business may self-account via reverse charge). For business-to-consumer (B2C) services, the default is that the supply is where the supplier is established, meaning Finnish VAT applies if a Finnish company serves EU consumers, unless a special rule dictates otherwise (e.g., in the case of digital services, see Section 17).
• Specific services (exceptions): Certain categories of services have special place-of-supply rules under the EU Directive, which Finland applies:
  • Services related to immovable property (e.g., construction, real estate services): taxed where the property is located (if the property is in Finland, Finnish VAT applies for both B2B and B2C).
  • Passenger transport services: taxed by distance traveled in each country (international passenger transport may be partially zero-rated when leaving the EU).
  • Restaurant and catering services: taxed where the services are physically carried out (thus catering in Finland is subject to Finnish VAT, at 13.5% for food catering). [vero.fi]
  • Admission to events (cultural, artistic, sporting, scientific, educational, entertainment): taxed where the event takes place, even for B2B customers.
  • Electronically supplied services, telecoms, and broadcasting (B2C): taxed where the consumer is located. For Finnish businesses providing digital services to EU consumers, VAT is due in the consumer’s member state (see Section 17 on OSS).
  • Passenger transport and ancillary services: taxed where transport occurs; international passenger transport may be zero-rated when leaving the EU (as Finland did temporarily in early 2023 for certain transport to support consumers). [vero.fi]
• Continuous supplies of goods or services: If a supply is continuous (e.g., ongoing services or long-term rentals), and periodic billing occurs, the tax point is at the end of each billing period. If a continuous service lasts over a year without interim payments, the VAT is typically due at least annually (at year-end), in accordance with EU rules.
• Imports: The place of supply for imported goods is Finland if goods enter Finland from outside the EU customs territory. Import VAT is paid either at importation or via deferred accounting on the VAT return (see Section 15.6). The time of supply for imports is generally when the goods clear customs into free circulation in Finland (or when removed from a customs suspension regime).

14. Time of Supply (Tax Point) Rules

• 14.1 Goods (One-Off Sales): For one-time sales of goods, the time of supply is generally when the goods are delivered or made available to the customer (i.e., when the right to dispose of the goods is transferred to the buyer). If goods are shipped, the tax point is typically when dispatch or transport to the customer begins.
  However, if an invoice is issued or payment received in advance of delivery, that can also create a tax point:
  • If an invoice is issued before delivery, VAT becomes due when the invoice is issued (for the invoiced amount).
  • If a payment (advance or deposit) is received from the customer before delivery, VAT on that amount becomes due when payment is received (unless it’s a full payment and the sale is not yet certain – e.g., in some consignment sales).
  In practice, Finnish businesses usually issue invoices at delivery, so the invoice date and delivery date often coincide, simplifying the tax point. If invoicing is delayed, note that for cross-border intra-EU supplies of goods, an invoice must be issued by the 15th of the month following the month of supply to satisfy EU rules. [globalvatc…liance.com]
• 14.2 Services (One-Time Services): For services (which are not continuous), the tax point is typically when the service is performed or completed. If an invoice is issued or payment is received earlier, that will trigger the tax point at that earlier date (to the extent of the amount invoiced/paid). For many B2B services, where the customer will self-account via reverse charge, the timing is still relevant for when that reverse charge is declared.
• 14.3 Continuous Services: When services are provided continuously or over an extended period (e.g., a one-year consulting contract, or ongoing maintenance services), the time of supply occurs at the end of each billing period. If you issue periodic invoices (say monthly or quarterly), each invoice creates a tax point for the amount billed in that period. If no periodic payments are made within a calendar year, Finnish VAT law (following the Directive) requires that VAT be accounted for at least on December 31 each year for the portion delivered in that year, ensuring no service extends beyond 12 months without a tax point. Essentially, ongoing services must have annual tax points if they haven’t been billed or paid within the year.
• 14.4 Imports: The time of supply for imported goods is when the goods enter Finland’s territory and clear customs (i.e., when they become free for circulation). At that moment, import VAT is chargeable. However, since Finland uses a deferred import VAT accounting mechanism (see Section 15.6), import VAT is not collected at the border if the importer is VAT-registered; instead, it’s declared on the VAT return for the period including the import date. Thus, practically, the tax point for imports aligns with the customs clearance date – that import must be included in that period’s VAT return, with VAT declared (and simultaneously reclaimable as input VAT if the importer has the right to deduct). [innovatetax.com]
• 14.5 Goods on approval/return (Consignment sales): If goods are supplied to a customer on a sale-or-return basis or under a consignment stock arrangement, the time of supply is special. Typically, the VAT becomes due when the customer confirms purchase or when the return period expires. If the goods are returned unsold within the allowed period, no sale has taken place (no VAT due). Finland’s law, aligned with EU “call-off stock” simplification from 2020, allows a foreign supplier to send goods to a warehouse in Finland for a known customer without immediate VAT, deferring the tax point until the customer actually takes the goods (within 12 months). If the goods aren’t taken and are removed or returned, no Finnish VAT arises (but careful record-keeping is required – see Section 15.2). [avalara.com]

15. VAT Invoicing Requirements

• 15.1 Invoice Issuance Deadlines:
  • Domestic sales: For most domestic (Finland-to-Finland) transactions, there is no fixed statutory deadline by which an invoice must be issued. However, best practice is to issue the invoice at the time of supply or very soon after. The invoice date often serves as the tax point if it precedes delivery or payment (so delays can affect when VAT is due).
  • Intra-EU supplies: If you make an intra-Community supply of goods (to a VAT-registered buyer in another EU country), Finnish law requires you to issue the invoice by the 15th day of the month following the month of supply. This mirrors EU law and is important for timely EC Sales List reporting (see Section 23.1). [globalvatc…liance.com]
  • Other cross-border services under reverse charge: There’s no specific issuance deadline given in Finnish law beyond EU requirements, but to ensure the correct tax period for the reverse-charge declaration by the customer, invoices should be issued promptly after the service is performed.
  In summary, while Finland doesn’t impose an explicit short-term deadline for all invoices, issuing invoices without undue delay is crucial. At minimum, ensure invoices for cross-border EU supplies are out by the 15th of the following month, and all invoices reflect the actual date of supply if different from invoice date. [globalvatc…liance.com]
• 15.2 Required Invoice Contents:
  A full VAT invoice in Finland must contain all the details mandated by the VAT Act (Section 209c) and EU rules. The core required elements are: [globalvatc…liance.com], [globalvatc…liance.com]
  1. Date of issue of the invoice.
  2. Sequential invoice number that uniquely identifies the invoice (no duplicates within the same accounting period).
  3. Supplier’s name, address, and VAT identification number (FIxxxxxxxx).
  4. Customer’s (buyers) name and address. If the customer is liable for tax (e.g., under reverse charge), include the customer’s VAT number as well. [globalvatc…liance.com]
  5. Quantity and nature of goods supplied OR extent and nature of services rendered (a clear description of what is sold).
  6. Date of the supply (goods delivery or service completion) or date of advance payment, if different from the invoice date.
  7. Net amount (taxable amount) per rate, excluding VAT, for each category of goods or services, and any unit price if applicable.
  8. Applied VAT rate(s) (25.5%, 13.5%, 10%, or 0% as appropriate) for each line or category of items. [globalvatc…liance.com]
  9. VAT amount payable, per rate or in total (the tax amount in euros). [globalvatc…liance.com]
  10. Any VAT exemption or reverse charge reference: If the supply is exempt or zero-rated, or subject to reverse charge, the invoice should include a reference to the relevant provision or note such as “VAT 0% – intra-Community supply” or “Reverse charge – VAT Act §” to indicate why no VAT is charged.
  11. If a margin scheme applies (e.g., second-hand goods, art), a reference to the special scheme (e.g., “Margin scheme – second-hand goods, VAT non-deductible”).
  These requirements align with EU standards. All businesses must adhere to these when issuing invoices to taxable persons. For B2C retail sales, simplified receipts may be sufficient (see Section 20, Cash Register Receipts).
• 15.3 Electronic Invoicing and Signatures:
  Finland is a leader in electronic invoicing (sähköinen laskutus). Key points:
  • E-invoices are allowed without special permission. No specific format is imposed by VAT law, but e-invoices must contain the same information and be stored properly. Finland follows EU rules that no special certification is required for e-invoices: authenticity and integrity of e-invoices can be ensured “by business controls”, meaning any reliable method (such as using recognized e-invoice systems or formats like Finvoice/EDI) is acceptable. Advanced electronic signatures or EDI with audit trail are options but not mandatory in most cases. [vero.fi]
  • B2G e-Invoicing Mandate: Since April 2020, Finnish law (Act 241/2019) requires that all government contracting entities can demand e-invoices from their suppliers, and businesses above a certain size must be able to send e-invoices. Practically: [vero.fi]
    • If you supply to the Finnish government or municipalities, you generally must provide invoices in the European standard e-invoice format (Finland uses “Finvoice” or EU standard XML format).
    • Additionally, B2B e-invoicing: Clients (business customers) with turnover > €10,000 can request e-invoices, and suppliers are obliged to comply. This is part of Finland’s move toward a real-time digital economy, encouraging widespread adoption of e-invoicing by the private sector. [fintua.com]
  • Digital Signatures: Digital or electronic signatures on invoices are optional. Finnish VAT law does not require invoices to be signed or stamped. The focus is on ensuring the integrity (no alteration) and authenticity (confirming the sender’s identity) of invoices – which can be achieved by various means (system controls, EDI networks, etc.) in lieu of a physical or digital signature.
• 15.4 Simplified Invoices:
  In certain cases, Finland allows a simplified invoice (a receipt with reduced information) instead of a full VAT invoice. Scenarios include:
  • Retail sales of €400 or less: For small transactions in retail trade (B2C sales up to €400) and sales via vending machines, businesses can issue simplified receipts. [globalvatc…liance.com]
  • A simplified invoice must contain at least: date, supplier’s identity (name & VAT number), identification of goods/services, total amount including VAT, and either the VAT amount or sufficient information to calculate it (e.g., “price includes X% VAT”). If a simplified invoice serves as a credit/debit note, it must refer to the original invoice being corrected. [globalvatc…liance.com]
  • Simplified invoices cannot be used for B2B supplies where the customer needs an invoice to deduct VAT, nor for distance sales, intra-EU supplies, or reverse-charged sales. Those situations always require a full invoice. [vero.fi], [vero.fi]
• 15.5 Self-Billing:
  Self-billing (where the customer issues the invoice on behalf of the supplier) is permitted in Finland under certain conditions. It is typically used in industries like forestry (timber purchases) and agriculture, or other cases involving primary producers or commission sales. Key conditions:
  • Both parties must agree to self-billing in advance, usually via a written agreement.
  • The invoice issued by the buyer must contain all required VAT details as if the seller issued it. It should clearly indicate that it’s self-billed and likely include a reference like “Self-billing – agreed with supplier”.
  • The supplier remains responsible for ensuring the invoice’s accuracy and for VAT accounting. Essentially, a self-billed invoice is treated as if the seller issued it.
  Self-billing can simplify processes (the buyer generates the invoice to themselves, often when they have better info on the transaction volume/price), but it must be carefully managed to meet VAT requirements.
• 15.6 Record Retention:
  Finnish VAT law requires that invoices and related accounting records be kept for at least 6 years following the end of the year in which the financial year ends. In practice: [vero.fi]
  • Storage period: Typically 6 years is the minimum retention period for VAT records (which aligns with general accounting record retention in Finland). Some sources suggest longer for certain assets (for example, documents relating to real estate or capital goods adjustments may need to be kept for the duration of their adjustment period – up to 10 years; see Section 15.10).
  • Format: Records can be stored electronically if they remain readable and accessible in Finland. Many companies keep digital archives of invoices. The Tax Administration may request to inspect records during audits.
  • Language/currency: The law doesn’t require translation of invoices into Finnish/Swedish, but the Tax Administration can request translations during an audit. It’s advisable if issuing invoices in a foreign language to be ready to provide a translation upon request.
• 15.7 Invoice Corrections (Credit Notes):
  If an invoice is issued with incorrect details (such as the wrong amount, or the need to adjust the price, or to cancel a sale), the correction is usually done by issuing a credit note (credit invoice) or a debit note:
  • A credit note (hyvityslasku) should reference the original invoice and include negative amounts to adjust or nullify the original VAT and taxable amount. For example, if an invoice was overcharged or a sale was canceled or goods returned, a credit note is issued showing the amount of credit (including VAT) to the customer. This effectively reduces the seller’s output VAT in the period the credit note is issued.
  • A debit note (veloituslasku) is issued if additional charge needs to be applied (e.g., an undercharged amount on the original invoice). It similarly references the original and charges the extra amount with VAT.
  Finnish practice emphasizes that any changes after an invoice is issued should be documented. Sellers must issue an invoice if the price changes after the initial invoice or if a sale is canceled. The credit/debit note mechanism is how to do this. On a credit note or any document treated as an invoice, it’s important to include a specific reference to the original invoice that is being corrected, and to include all necessary info about the change. [globalvatc…liance.com]
  Additionally, if a foreign seller didn’t charge VAT but the sale should have been taxed under Finnish reverse charge rules, the Finnish buyer adding their VAT number and a “reverse charge” statement on the invoice is a valid way to document the VAT due.

16. Compliance and Deductions

• 16.1 Right to Deduct Input VAT (and Key Exceptions):
  Businesses registered for VAT in Finland have the right to deduct the input VAT they incur on purchases of goods or services used for their taxable business activities. This fundamental principle means that VAT is a tax on consumption by the end consumer, not on businesses. However, there are key exceptions where input VAT is not deductible: [vero.fi], [vero.fi]
  • Non-taxable or exempt activities: If a business engages in VAT-exempt activities (see Section 3.4), VAT on costs related to those activities usually cannot be reclaimed. For example, a bank or insurance company (largely providing exempt services) cannot deduct VAT on purchases serving those exempt services (except in certain limited cases).
  • Passenger cars: VAT on passenger cars and related expenses (fuel, maintenance) is mostly non-deductible unless the car is used exclusively for taxable business purposes (e.g., a taxi, driving school car, rental car). If a car is used for both business and private use, input VAT deduction is disallowed or severely limited. [taxation-c….europa.eu]
  • Entertainment expenses (“edustuskulut”): Input VAT on expenses for entertainment or hospitality (e.g. client meals, gifts over certain small value) is not deductible in Finland, aligning with the rule disallowing VAT deduction on what are essentially non-business or gratuitous consumption.
  • Housing and personal expenses: VAT on expenses like lodging, travel, or food for employees may be non-deductible unless they are strictly for business purposes (travel allowances often have special rules).
  • Home offices and immovable property used partly for private use: input VAT must be apportioned and often partially denied for private-use portions.
  Partial exemption: If a Finnish business has both taxable and exempt activities (for instance, a hospital that has some taxable cafeteria sales but mainly exempt medical services), it can only deduct the proportion of input VAT that corresponds to its taxable (and zero-rated) activities. This typically involves an apportionment (pro-rata) calculation as per VAT Act §§117–119.
  Capital goods adjustment: For high-value capital assets (especially real estate), Finland applies the EU’s capital goods scheme – see Section 16.10 – which adjusts input VAT over several years if usage changes.
• 16.2 Call-Off Stock Arrangements:
  Call-off stock refers to inventory that a supplier moves to a warehouse in another country to be kept ready for a specific customer, who will “call off” (draw from) the stock as needed. Under the EU 2020 “Quick Fixes”, moving goods under a call-off arrangement to another EU country can be simplified to avoid immediate VAT registration in the destination country. Finland has implemented the EU call-off stock simplification:
  • If an EU seller transfers its own goods from another EU Member State to a warehouse in Finland for a known Finnish VAT-registered buyer, no immediate Finnish VAT event occurs at the time of transfer. When the Finnish customer eventually takes the goods from the warehouse, that is treated as an intra-Community supply by the seller (0% VAT in the origin country) and an intra-Community acquisition by the Finnish buyer (subject to acquisition VAT in Finland). [avalara.com]
  • Conditions include that the goods must be taken by the identified buyer within 12 months of arrival in Finland. The foreign supplier must keep a special call-off stock register and report the movement in the new EC Sales List (with call-off details). If conditions aren’t met (e.g., goods are not collected in time or are delivered to a different buyer), the transfer may be deemed a taxable movement (the foreign company might have to VAT-register in Finland retroactively).
  The call-off stock arrangement streamlines supply chains by avoiding multiple VAT registrations for suppliers. Finnish legislation (aligned with EU rules) requires maintaining detailed records (per Implementing Reg. 2018/1912, Article 54a) and timely reporting of any changes, such as substituting the customer or goods.
• 16.3 Reverse Charge Mechanisms (Domestic and Cross-Border):
  The reverse charge is a mechanism shifting the liability to account for VAT from the seller to the buyer. There are two contexts:
  • Cross-border B2B services: As per EU rules, many services supplied B2B from a non-resident supplier fall under the general reverse charge. If a non-Finnish company provides a service to a Finnish VAT-registered company, and the service is taxable in Finland, the Finnish customer must self-account for Finnish VAT on that service (while the foreign supplier does not charge VAT). This applies to most B2B services under the main rule (with exceptions like land-related services). No local registration is needed by the foreign supplier in such cases, and the Finnish buyer both declares output VAT and claims input VAT (if entitled), making it neutral for them. Notably, Finland removed the requirement for non-established businesses to register when providing services, expecting the reverse charge to cover those cases. [avalara.com]
  • Domestic reverse charge (Finland-specific cases): Finland has adopted domestic reverse charge in certain scenarios to combat fraud or simplify taxation in specific industries:
    • Construction services and labor leasing in construction: In the construction sector, if a Finnish business provides construction work or hires out labor for construction services to another business that in turn provides construction services, the VAT is reverse-charged to the customer (the buyer accounts for VAT). This rule is aimed at preventing VAT evasion in the building industry (common in subcontracting chains). It applies to construction services and sales of scrap metal/waste in Finland.
    • Investment gold: Supplies of investment gold are generally exempt with an option to tax. If a supplier opts to tax investment gold, a reverse charge may apply to those transactions (as per EU rules to prevent fraud).
    • Certain electronic trading scenarios: If goods are sold in Finland by a foreign seller through an online marketplace deemed a “deemed supplier,” the marketplace might be liable for VAT (though this is more under OSS/IOSS rules rather than a classical reverse charge).
    • Other cases: There is a domestic reverse charge for certain emission allowances trading – the buyer in Finland is liable if the seller is non-resident or otherwise not VAT registered in Finland (likely implemented to counter VAT carousel fraud in carbon credits). [vero.fi]
  The Finnish VAT Act designates these reverse-charge cases in line with Article 194 of the EU Directive and additional permitted cases (like construction under Article 199).
  Practical impact: If you are a foreign company selling goods or services in Finland B2B, check if a reverse charge could apply (thus relieving you from Finnish VAT registration). If you are a Finnish VAT-registered buyer, be aware of your obligations to account for VAT on purchases under reverse charge (and ensure the invoice has your VAT number and a “reverse charge” notation). Notably, if a foreign supplier does voluntarily register in Finland, they must charge Finnish VAT and the reverse charge won’t apply. [avalara.com] [innovatetax.com]
• 16.4 Treatment of Cash Discounts:
  Cash discounts (or early payment discounts) are allowed in pricing and invoices, and the VAT treatment follows EU norms:
  • If a discount is agreed and taken up-front (at the time of sale), then VAT is calculated on the discounted price actually paid.
  • If a discount is conditional (e.g., 2% off for payment within 10 days) and the customer takes the discount, the seller should adjust the VAT accordingly. Typically, the initial invoice might show the full amount and note the discount terms, then if the discount is taken, a credit note can be issued to reduce the VAT correspondingly.
  • If the discount is not taken (customer pays full price after 10 days), no adjustment is needed.
  In Finland, prompt payment discounts are common in B2B trade and should be handled by issuing the invoice with the discount terms. The key is that the VAT is ultimately due only on the amount the supplier actually receives. Finnish VAT guides on invoicing suggest that if the final price changes for any reason (including discounts given after invoicing), a corrected invoice or credit note must be issued to adjust VAT. Therefore, always ensure the taxable amount reflects any net discount.
• 16.5 Bad Debt Relief Conditions:
  If a business has accounted for and paid output VAT on a sale but later discovers that the customer did not pay (bad debt), Finnish law provides a mechanism for VAT relief (credit adjustment), but strict conditions apply. In Finland:
  • Bad debt VAT relief is allowed when a receivable is definitively written off as uncollectible. This typically requires evidence that the debt is worthless (for example, the customer’s bankruptcy or an official debt restructuring).
  • The seller can adjust (reduce) their output VAT in the VAT return when the bad debt condition is met. Often, the tax authorities expect that the claim has been pursued and a certain time has elapsed or legal proceedings concluded.
  • Documentation is required to support the claim (e.g., bankruptcy court decision, collection agency statements). The VAT adjustment normally is made by issuing a credit note to cancel the original invoice’s VAT. However, if a credit note cannot be delivered (e.g., customer out of business), internal records showing the write-off suffice.
  • If a payment is subsequently received after claiming relief, the VAT must be recaptured (declared in the period of receipt).
  Finland’s conditions for bad debt relief are somewhat strict in practice: one must demonstrate that all reasonable measures to collect the debt were taken and that it’s not a mere late payment but a true bad debt (unrecoverable). There might be a minimum time period after the due date before relief can be claimed (often 6+ months or aligned with when a debt is legally deemed irrecoverable).
• 16.6 Import VAT Deferment (Postponed Accounting):
  Finland has adopted an import VAT deferred accounting system that greatly aids cash flow for importers. Under the current practice:
  • Registered businesses do not pay import VAT upfront at customs clearance. Instead, when goods are imported from outside the EU, Customs calculates the import VAT due but does not require immediate payment. The importer (if VAT-registered in Finland) simply declares both the import VAT payable and the equivalent deductible VAT on their next VAT return, effectively self-accounting for import VAT. [innovatetax.com]
  • This mechanism means import VAT is paid and reclaimed on the same VAT return, resulting in no actual cash outlay for fully taxable businesses (as the payable and deductible amounts cancel out). It’s akin to the “postponed VAT accounting” common in some other EU states.
  • If an importer is not VAT-registered (e.g., a private individual or small unregistered firm), then import VAT is collected by Customs at the border as usual.
  Example: A Finnish company imports goods from the US worth €10,000. The standard VAT rate 25.5% applies, so ordinarily €2,550 would be due at import. With deferred accounting, the company does not pay €2,550 at customs; instead, on its VAT return it will report €2,550 as VAT on imports (output side) and simultaneously claim €2,550 as input VAT (assuming the goods are for taxable sales). This greatly helps cash flow. [innovatetax.com]
  Important: To use postponed accounting, the importer must have a Finnish VAT number at the time of import. Importers should ensure their EORI number is linked to their VAT number for customs declarations. The system has been in effect for several years and is widely used by Finnish businesses. [innovatetax.com]
• 16.7 VAT Warehousing:
  The EU VAT warehousing regime is available in Finland. Under this regime, certain goods can be placed in a VAT warehouse (a designated facility) and transactions involving those goods can be zero-rated until they are removed for use or sale on the domestic market. This mechanism is intended to ease cash flow for trade in specific commodities (e.g., certain electronics, grains, etc.) and is separate from customs warehousing. [innovatetax.com]
  In Finland:
  • A VAT warehouse is typically used for specific goods, such as valuable electronics or bulk commodities, as defined in the VAT Act. Transactions like selling goods while they are within the VAT warehouse are not charged VAT. VAT becomes due only when goods leave the warehouse to a non-authorized holder or for consumption in Finland. [innovatetax.com]
  • Example: A company stores non-EU goods or designated domestic goods in a VAT warehouse in Finland. It can sell the goods to another company while they remain in the warehouse without VAT. The buyer pays VAT only when the goods are taken out of the warehouse into free circulation in Finland.
  • Authorized traders: Usually, to use this, both the warehouse operator and buyers/sellers often need authorization. This scheme is particularly used in cross-border supply chains and trading hubs.
  • Difference from customs warehouse: VAT warehousing is distinct from customs warehousing. Customs warehouses suspend import duties and VAT for non-EU goods; VAT warehouses can apply to EU goods as well for VAT deferral. Finland’s VAT warehousing rules follow the EU law, and one notable use-case is in commodities trading or supply of investment gold.
  For most typical businesses, VAT warehousing is not commonly used unless dealing with those specific goods. It’s a niche provision – but important if relevant to your sector (e.g., trading in metals, certain electronics, etc.). The Finnish VAT Act sections 72h onwards cover such procedures. [vero.fi], [vero.fi]
• 16.8 Supply-and-Install (Installations in Finland):
  A frequent scenario in cross-border trade is when a foreign company sells goods and also installs or assembles them in the customer’s country. In VAT terms, this is an example of a “supply of goods with installation.” According to EU rules (and Finnish VAT Act §63), the entire transaction is considered a supply of goods in the country of installation.
  Implication for Finland: If a foreign company (say from another EU state) supplies machinery and sends technicians to install it on-site in Finland, that transaction is treated as a domestic supply of goods in Finland (not an intra-EU supply), because the goods are assembled/installed here. Therefore:
  • The foreign supplier might be required to VAT-register in Finland to charge Finnish VAT on that installed machinery, unless the Finnish customer is VAT-registered and Finland’s reverse charge for foreign suppliers of goods can apply (Finland does allow reverse charge for certain “major” supplies of goods by non-established suppliers to VAT-registered customers – effectively if a foreign company sells and installs goods to a VAT-registered Finnish business, the Finnish business may self-account for VAT, removing the need for the supplier to register. However, if the sale is to a non-VAT-registered customer, the foreign supplier must register and charge Finnish VAT). [innovatetax.com]
  • This is an important distinction from a simple goods sale. The presence of installation means the supply isn’t treated as an EU intra-community shipment; it’s taxed locally. Foreign businesses should plan accordingly (e.g., use a local subcontractor who bills the Finnish client, or register for VAT in Finland, or ensure the reverse-charge mechanism covers their scenario if selling B2B).
  For Finnish businesses purchasing goods with installation from abroad, be aware that you may need to account for VAT under reverse charge if the supplier isn’t registered.
• 16.9 Use and Enjoyment Provisions:
  Use and enjoyment rules (VAT Directive Article 59a) allow countries to adjust the place of taxation of certain services to prevent double non-taxation or double taxation, by considering where services are actually consumed. According to the European Commission’s data, Finland currently does not apply any use-and-enjoyment overrides for telecommunications, broadcasting, and electronic services for non-taxable customers. Most services follow the standard place-of-supply rules without special modification in Finland.
  For example:
  • If a person in Finland receives telecom or electronic services from a non-EU provider, Finland does not shift the taxation to Finland via use-and-enjoyment; rather, those are handled by the general B2C rule for digital services (place of supplier unless the Non-Union OSS is used – but since 2015, digital B2C services are actually taxed where consumer is, by EU law, so use-and-enjoyment is not needed in that context).
  • Leasing of means of transport: Some EU countries use use-and-enjoyment for hiring of vehicles. Finland has not implemented special use-and-enjoyment rules in these cases; it follows the default EU rules (short-term hire of vehicles is taxed where the vehicle is put at disposal; long-term B2C hire taxed where customer is, etc.).
  In summary, Finland’s use of the discretionary use-and-enjoyment provisions is either non-existent or minimal. The normative rules apply, and businesses generally do not need to worry about Finland unilaterally changing the place of taxation due to use-and-enjoyment, except as provided for in EU law.
• 16.10 Capital Goods Adjustment Period:
  Finland follows the EU VAT Directive’s Capital Goods Scheme to adjust input VAT on significant capital assets over time if their use changes:
  • For immovable property (real estate) used in business: the adjustment period is typically 10 years (the year of first use plus 9 subsequent years). If a company initially fully deducts VAT on constructing or buying a building (assuming it was fully intended for taxable use), but within the next 10 years the building’s use shifts to exempt purposes (e.g., rented out for residential use), then a proportional amount of that initially deducted VAT must be paid back for the remaining adjustment years. Conversely, if initially no or partial deduction was made and later the use becomes taxable, the company can reclaim more VAT over the remaining period. The adjustment per year is usually 1/10 of the total input VAT for real estate. [innovatetax.com]
  • For movable capital assets (e.g., expensive machinery, vehicles): the adjustment period is generally 5 years in many EU countries. Finland’s law likely specifies 5 years for movable assets that exceed a certain value threshold. So, if a machine is bought with full VAT deduction and later moved to exempt use within 5 years, some VAT is paid back.
  The capital goods adjustment ensures fairness by correlating VAT deduction with actual use over time. Businesses in Finland must keep records of capital asset purchases and track any changes in use during the adjustment period. Adjustments are reported on the VAT return for the year of change.

17. VAT Recovery for Non-Residents (EU & Non-EU Refunds)

• 17.1 EU 8th Directive Refunds (EU Businesses):
  Under Council Directive 2008/9/EC (formerly the 8th Directive), EU businesses not established in Finland (but in another EU member state) can claim refunds of Finnish VAT on expenses. The process is:
  • Eligibility: The claimant must not have a fixed establishment or VAT registration in Finland and must not have carried out any taxable supplies in Finland (other than under reverse charge or certain transport services) during the refund period. [vero.fi]
  • Application: Submitted via the electronic portal of the claimant’s own EU country’s tax authority (in their own language). The home tax authority forwards the claim to Finland electronically. [vero.fi]
  • Timeframe: Applications cover at most a calendar year (or shorter, minimum 3 months) and must be submitted by September 30 of the following year. (E.g., Jan–Dec 2025 expenses by 30 Sept 2026). [vero.fi]
  • Minimum amounts: €400 for claims covering less than a year (at least three months), or €50 for full-year claims. [taxation-c….europa.eu]
  • Supporting documents: Scanned copies of invoices or receipts above certain values (e.g., invoices over €250) should be attached. A description of the purchases by category codes is required (EU standard codes for expense types).
  • Processing: Finnish Tax Administration has up to 4 months to decide on the claim (which can extend to 6-8 months if they request additional info). If approved, the refund is paid directly to the applicant’s bank account in the EU. Finland generally does not require a fiscal representative or impose extraordinary conditions for EU refunds – it follows the standard EU procedure.
  • Non-deductible items: The same limitations apply as for Finnish businesses (no refunds for VAT on entertainment, most passenger car costs, etc., see 16.1). The official guidance lists non-refundable items aligning with Finnish input VAT restrictions. [taxation-c….europa.eu]
• 17.2 Non-EU 13th Directive Refunds (Foreign Businesses Outside EU):
  Businesses from outside the EU can reclaim Finnish VAT under the 13th Directive scheme:
  • Eligibility: The non-EU business must not be registered or established in Finland. They also must not make taxable supplies in Finland (except certain scenarios like reverse-charged services).
  • Reciprocity: Finland does not require reciprocity agreements for granting refunds to non-EU businesses. In other words, companies from any non-EU country can apply (even if their country doesn’t refund VAT to Finns). This is a generous stance compared to some EU countries. [taxation-c….europa.eu]
  • Application Process: Usually involves sending Form 9550 (Application for VAT refund to foreign businesses) to the Finnish Tax Administration, electronically or on paper. The form and instructions are available on https://www.vero.fi (in English). Finland updated its official guidance for non-EU VAT refunds in January 2025 (Guidance VH/7656/00.01.00/2024).
  • Deadline: June 30 of the following year (earlier than the EU 8th Directive timeline). For example, refund claims for any expenses in 2025 must be submitted by 30 June 2026. [taxation-c….europa.eu]
  • Period & Minimum: Same period coverage and minimums as EU claims (3+ months, up to 1 year; €400/€50 thresholds). [taxation-c….europa.eu], [taxation-c….europa.eu]
  • Representative: No fiscal rep required in Finland for 13th Directive claims. The applicant can correspond directly, but they must provide a certificate of taxable status from their home tax authority (typically a document confirming they are a business person for VAT/GST purposes in their country) and a power of attorney if using an agent. [taxation-c….europa.eu]
  • Processing time: Similar aim of around 6 months.
  • Payment: If approved, the refund is paid in euros, usually to a bank account (applicants may need to provide IBAN/SWIFT details).
• 17.3 Reciprocity Requirements:
  As noted above, Finland imposes no reciprocity conditions for VAT refunds to non-EU claimants. This means businesses from any country (e.g., USA, China, etc.) can apply for Finnish VAT refunds even if their home countries do not refund VAT to Finnish companies. This policy encourages foreign business activity and tourism in Finland by making it easier to recover VAT. [taxation-c….europa.eu], [taxation-c….europa.eu]
• 17.4 Need for Fiscal Representative:
  For VAT refunds under both the 8th and 13th Directives, no fiscal representative is required for the process. EU businesses go through their own tax authority electronically (no rep needed). Non-EU businesses apply directly to Finland’s Tax Administration; Finland explicitly does not mandate appointing a tax representative for the refund application. [taxation-c….europa.eu]

18. VAT on Digital Services

• B2B Digital Services: If a Finnish business provides digital services to a business customer in another country, the general B2B rule applies – no Finnish VAT is charged; the service is taxed where the customer is established via reverse charge. Conversely, if a foreign business provides e-services to a Finnish VAT-registered business, no VAT is charged by the provider; the Finnish business must account under reverse charge. Essentially, B2B digital services are taxed at the buyer’s location under standard EU place-of-supply rules (Article 44 of the VAT Directive).
• B2C Digital Services: Since 2015, as per EU-wide rules, digital services sold to consumers (non-business customers) are taxed in the customer’s Member State, not where the supplier is. To facilitate this without requiring every company to register in every EU country, the Mini One Stop Shop (MOSS) was introduced, which expanded into the One Stop Shop (OSS) in 2021: [vatupdate.com]
  • A Finnish business selling apps, downloads, streaming, e-books, or other e-services to consumers in other EU countries must charge VAT at the rate of the consumer’s country. The Finnish business can use the “Union OSS” scheme: remain registered only in Finland and report all other EU countries’ VAT through quarterly OSS returns submitted to the Finnish Tax Administration. [avalara.com]
  • A non-EU business selling digital services to EU consumers can register for the Non-Union OSS in any one EU state (thereby avoiding individual registrations in each EU country). Often they choose Finland or another EU country to handle all EU VAT reporting with a single OSS return. [avalara.com]
  • There is a €10,000 threshold (EU-wide aggregate) for cross-border B2C digital services below which an EU SME can opt to treat foreign EU sales as domestic and charge their home VAT. Finland, as part of the EU, uses this threshold: if a Finnish company’s total cross-border B2C sales of electronic services (plus other OSS-eligible services or distance sales of goods) are under €10,000 per year, it can simply charge Finnish VAT and not use OSS. Once that threshold is exceeded, OSS registration is needed to apply each customer’s country VAT. [avalara.com]
  • Digital services include a broad range of electronically supplied services (e.g., streaming media, software and SaaS, online gaming, cloud services sold to consumers). Telecom and broadcasting services similarly follow these rules.
• Local Digital Services: Digital services sold within Finland (Finnish business to Finnish consumers) are just subject to standard Finnish VAT rates. Notably, e-publications (e-books, e-newspapers) were moved to the reduced VAT rates (first 10%, then 13.5% from 2026) aligning them with physical publications. So, an e-newspaper subscription in Finland is taxed at 10% (13.5% if it qualifies as an electronic service not fitting the publication definition prior to 2026). [vero.fi], [vero.fi]
• Administrative simplifications: Finland’s Tax Administration has integrated OSS registration via the MyTax portal. If you’re a business using OSS (either as a Finnish company for selling to EU consumers or a foreign company electing Finland as your OSS member state), you register through MyTax and thereafter file quarterly OSS returns to report all EU B2C digital service sales.
• Non-EU digital services to Finland: If a non-EU company doesn’t use OSS/IOSS, selling digital services to Finnish consumers would require either local registration or more commonly using the Non-Union OSS. It’s strongly recommended to use OSS to avoid multiple registrations.

• B2C digital services are taxed at the consumer’s location (using OSS to simplify compliance). [avalara.com]
• B2B digital services are taxed under reverse charge by the business customer if cross-border.
• Finland has fully adopted the EU’s special schemes for e-services (MOSS, now OSS).
• Rates: Many digital services (non-physical) are taxed at the standard rate (25.5%). Notable exceptions: e-books and e-newspapers qualify for the reduced rate (10% or now 13.5%) just like their physical counterparts. [vero.fi], [vero.fi]

19. Distance Selling Rules

• EU-Wide Threshold: There is now a single EU-wide threshold of €10,000 for cross-border B2C sales of goods and digital services combined. Below this threshold (calculated across all EU countries), an EU supplier can opt to charge domestic VAT. Above it, VAT must be paid in the customer’s country. [avalara.com]
• One Stop Shop (OSS) for Goods: Suppliers can avoid registering in multiple countries by using the OSS. For distance sales of goods shipped from Finland to consumers in other EU countries, a Finnish business can collect the VAT at the customer’s rate and remit it via the quarterly OSS return to the Finnish Tax Administration, which will distribute it to the respective countries.
• Abolition of Finnish-specific thresholds: Before 2021, Finland had a national distance sales threshold (formerly €35,000 per year from each country to Finnish consumers). This is now superseded by the EU’s €10,000 threshold for all EU sales combined. Finland no longer has a separate national threshold for distance sales of goods – the EU OSS system applies.

• OSS Registration in Finland: A Finnish business can activate the Union OSS scheme through MyTax. Foreign EU businesses can use OSS in their own country. Non-EU businesses can use the Import One Stop Shop (IOSS) for low-value imports (see below).
• 19.1 Thresholds: The key threshold to remember is €10,000 for total EU-wide cross-border B2C sales of Telecom, Broadcasting, Electronic services & Intra-EU distance sales of goods. Once above this in the current or previous year, the business must collect VAT of the destination country. Note: There is also a €150 threshold per shipment relevant to the IOSS scheme (imports of low-value goods, see Section 18.2). [fintua.com]
• 19.2 OSS/IOSS Participation:
  • OSS (Union scheme): For intra-EU distance sales of goods, OSS is highly recommended to manage multi-country VAT. If a business opts into OSS, it reports all EU B2C sales (goods + digital services) in one return. Finland’s OSS system is well established via MyTax.
  • IOSS (Import OSS): For B2C goods imported into the EU (for example, goods shipped from a non-EU warehouse in online sales) with a value up to €150 each, the IOSS scheme can be used to pre-collect VAT at the point of sale. Non-EU sellers can register for IOSS (often via an intermediary in the EU) to charge the customer their local VAT, and then report via a monthly IOSS return in a single EU state. If IOSS isn’t used, the customer may have to pay VAT upon import.
  • Finland supports the IOSS; non-EU businesses can elect Finland as their IOSS member state (though typically businesses choose a single country for all EU).

20. Cash Accounting Scheme

• Starting from 2017, Finnish small enterprises (turnover under a certain limit) have the option to use cash accounting for VAT. Under cash accounting: [marosavat.com], [marosavat.com]
  • Output VAT on sales is not due until the customer pays (fully or in part). Conversely, input VAT on purchases cannot be reclaimed until the supplier has been paid. This means VAT is accounted for on a receipts-and-payments (cash) basis, rather than the standard invoice (accrual) basis.
  • The threshold for eligibility was set at an annual turnover not exceeding €500,000 when introduced. This generous threshold allows a broad range of SMEs to opt in. (This is the maximum allowed by EU law under an extended pilot program). The business must apply to use the cash accounting scheme, and certain conditions apply. [marosavat.com]
• Benefits: Cash accounting helps businesses by ensuring you only pay VAT to the Tax Administration after you have received payment, improving liquidity. This can be particularly useful for businesses that offer credit to customers or have slow-paying clients.
• Conditions and operation:
  • Businesses must apply through the Tax Administration (likely via MyTax or a form) to adopt cash accounting. Once approved, they must consistently apply it to all transactions.
  • If a customer never pays (bad debt), under cash accounting you would simply never have paid VAT in the first place. (However, if you had already reclaimed input VAT on related purchases, you might need to adjust that if the sale won’t happen).
  • There might be a requirement to switch back to accrual accounting if the threshold is exceeded or certain conditions change.
• Limitations:
  • Because cash accounting delays VAT deduction on purchases until payment, businesses should weigh if their creditors are paid much faster than debtors pay them. If a business often pays suppliers quickly but customers take long to pay, cash accounting could delay input VAT recovery more than output VAT, potentially hurting cash flow.
  • The scheme is optional; many businesses still use standard accrual accounting. If chosen, a company may need to stick with it for a minimum period (often a year) and inform the tax office if they want to switch or if they exceed the thresholds.

21. VAT-Registered Cash Tills (Point-of-Sale Requirements)

• Since 1 January 2014, Finland’s “Receipt Act” (Laki kuitintarjoamisvelvollisuudesta käteiskaupassa) mandates that businesses must offer a receipt for every cash or cash-equivalent sale (including card payments) to the customer. This applies to all businesses with annual sales over €10,000 (essentially all VAT-registered entities, since that’s above the old threshold of €8,500 and below current €20,000 threshold). [vero.fi], [vero.fi] [vero.fi]
  • The receipt can be paper or electronic, but it must contain key details: business name & Business ID, date, receipt number, items or service description, amount paid, and VAT amount or breakdown by rate. For small cash sales, this receipt can double as a simplified VAT invoice. [vero.fi], [vero.fi]
  • Exceptions: Certain activities are exempt from this obligation, including vending machine sales, certain gambling/lottery activities, open-air market sales (e.g., small market stalls) except alcohol service, and purely online sales where no in-person payment takes place. [vero.fi]
  • This rule is designed to encourage businesses to record all sales and to empower consumers to demand a receipt, thereby deterring under-the-table cash sales. The Tax Administration even runs the “Play Fair: Don’t forget the receipt” campaign to raise consumer awareness about asking for receipts.
  • Penalties: If a business fails to offer receipts, authorities can impose a negligence fee from €300 up to €1,000 per inspection instance. Authorities conduct random inspections and test purchases to enforce this rule. [vero.fi]
• Aside from the receipt issuance requirement, Finland does not currently mandate certified point-of-sale (POS) systems or “black boxes” for cash registers (unlike some EU countries that require special certified cash registers). However, all records from cash registers must be preserved, and the Tax Administration can audit them. There is ongoing discussion in the EU about digital reporting and cash register standards, so this may evolve.
• Electronic receipts and real-time economy: Finland is moving toward a real-time economy with digital receipts. While not a legal requirement yet, there are initiatives encouraging businesses to adopt e-receipts (digital receipts transmitted to customers) to reduce cash transactions and improve record-keeping. This is part of Finland’s broader digitalization strategy, but as of 2026, providing a printed or at least electronically deliverable receipt for cash sales is the main requirement.

22. Statute of Limitations

• 22.1 Period for Corrections (By Taxpayers): If a business discovers an error in a VAT return (such as an omission or an incorrect amount), it is required to correct it by submitting a replacement return for the period in question. In Finland, errors must generally be corrected within 3 years from the end of the tax period (month/quarter/year) concerned. This effectively acts as a statute of limitation for voluntary corrections and refund claims by the taxpayer. For example, if you find in 2026 that you missed an input invoice from June 2023, you have until the end of June 2026 to adjust the June 2023 VAT return and claim the input VAT.
  If more than 3 years have passed, typically the window for making changes or claiming additional VAT refunds closes. (There might be exceptions for special circumstances like legal proceedings or if the Tax Administration allows a late claim under certain conditions, but these are limited.)
• 22.2 Tax Authority Assessment Period: The Tax Administration likewise is generally bound by a limitation period for assessing additional VAT. While the exact period is set by law, it is typically three years from the end of the calendar year in which the tax period fell. However, in cases of suspected fraud or serious negligence, this can be extended (for instance, up to 6 years in some tax types). For VAT, Finland historically had a 5-year limit for reassessments, but more recent tax procedural rules standardize many taxes to a shorter period. As of current practice, 3 years is the standard audit look-back period for VAT, unless extended due to fraud. Therefore, after three years, final VAT assessments for that period cannot normally be reopened by the tax authority.
• Suspension or Interruption: If a taxpayer has an appeal or if the tax authorities have initiated an investigation within the period, the effective time limit may extend. Always keep records for the required period (6 years, as noted) since audits can cover those years.

• You should file a replacement return in MyTax for that specific period with the correct information. The latest submitted return for a period fully supersedes the previous one (so it must include all correct figures, not just the difference).
• Interest on underpayment: If the correction results in additional VAT due, you may have to pay a small interest (the late payment interest) from the original due date (see Section 24.2). It’s beneficial to correct errors proactively to minimize penalties.
• In case of overpayment: If the correction shows you overpaid tax, you can get a refund or credit, provided you are within the 3-year correction window. Finland does not allow keeping an unlimited credit; any overpaid VAT is typically refunded rather than carried indefinitely (except if you choose to apply it to future liabilities).
• 22.3 Consequences of not correcting: If errors are discovered in an audit within the allowed period, the Tax Administration will make an additional assessment. That could lead to back taxes and possibly penalties for negligence or tax increase.

23. VAT Return Filing

• 23.1 Filing Frequency:
  The default VAT filing frequency in Finland is monthly (each calendar month is a tax period). However, small businesses can opt for less frequent filing:
  • If annual turnover is €100,000 or less, the business may choose to file quarterly (every 3 months) instead of monthly.
  • If annual turnover is €30,000 or less, the business may choose to file quarterly or even annually.
  • These thresholds were updated in line with the new €20k registration limit and EU small business scheme implemented in 2025. The Finnish Tax Administration confirms: turnover up to €100k allows quarterly; up to €30k allows quarterly or yearly filing.
  • New VAT registrants default to monthly filing but can request a longer period upon registration if they qualify. [fintua.com]
  Example: A Finnish company with €80,000 annual sales can elect to file quarterly VAT returns, whereas a micro-business with €25,000 could even file annually if desired. If the company’s turnover later exceeds the threshold (e.g., grows above €100k), it must inform the Tax Administration and switch to more frequent filing immediately.
• 23.2 Filing Method:
  All VAT returns in Finland are filed electronically, primarily through the MyTax online service (paper filing is permitted only in exceptional cases). The MyTax platform is user-friendly and allows taxpayers to fill in the VAT return form online. Data required includes sales and VAT by rate category, total purchases and input VAT, as well as any imports or EU acquisitions where VAT was reverse-charged. The form is available in Finnish, Swedish, and English on MyTax. [vero.fi], [vero.fi]
  Returns are largely self-assessed – the Tax Administration typically does not pre-fill the amounts (with some exceptions for certain small businesses). However, MyTax will automatically calculate special reliefs like the small business VAT relief if applicable (see “VAT relief for small businesses” below).
• 23.3 Deadlines for Filing and Payment:
  The standard deadline for VAT returns in Finland is the 12th of the second month following the tax period. This applies to both filing the return and paying any VAT due: [innovatetax.com]
  • For monthly filers, each month’s VAT return is due on the 12th of the month after next. For example, the return for January is due by March 12.
  • For quarterly filers, the Q1 (Jan–Mar) return is due by May 12, Q2 by Aug 12, Q3 by Nov 12, Q4 by Feb 12 of the next year (subject to calendar adjustments if the 12th falls on a weekend/holiday, typically pushed to next working day).
  • For annual filers, the annual VAT return is due by the end of February of the following year (Feb 28/29). An annual filer would thus report all of 2025 by Feb 29, 2026. [fintua.com]
  The payment of any VAT owed is due by the same deadline as the return. In Finland, effectively, the filing and payment deadlines coincide (they are not separate). [innovatetax.com]
  Important: If no VAT operations occurred in a period, a nil return must still be filed (via checking “No activities” in MyTax) by the deadline.
• 23.4 Pre-Filled Return Availability:
  Currently, Finland does not provide pre-filled VAT returns for taxpayers (unlike some countries that have begun pre-populating data from e-invoicing). Taxable persons are responsible for compiling their VAT data. However, with increasing digitalization, the Tax Administration is gradually moving toward more automated reporting:
  • For instance, as e-invoicing and real-time reporting become widespread (see Section 20 and 23.4), the possibility of pre-filled returns in the future exists. As of now (2026), MyTax will calculate certain reliefs automatically (such as the small business VAT relief – see below and Section 25), but it will not automatically fill in your turnover or VAT amounts without your input.
• 23.5 Handling of VAT Credits/Refunds:
  If a VAT return results in a negative VAT balance (input VAT exceeding output VAT, e.g., due to zero-rated exports or investment purchases), Finnish policy is generally to refund the excess credit rather than carry it forward by default. Key points: [innovatetax.com], [innovatetax.com]
  • Automatic refunds: Finland does not require a separate request for a refund; if your return shows a refundable amount, it will typically be refunded automatically to your bank account (provided bank details are given in MyTax).
  • There is no formal “carry forward” mechanism to the next period for credits by default. If a taxpayer prefers to use an overpayment to offset future VAT, they might achieve this by simply leaving the credit in their tax account, but the system tends to refund it. (The InnovateTax guide explicitly notes that Finland does not have a carry forward mechanism, suggesting refunds are issued for credits.) [innovatetax.com]
  • Refunds are usually processed relatively quickly. In practice, many businesses receive VAT refunds within 30 days after the return due date, assuming no issues. Delays may occur if the Tax Administration decides to verify the claim (e.g., for unusually large refunds, they might request additional info or conduct an audit before paying out). If the refund is delayed beyond 30 days without justification, interest may accrue in favor of the taxpayer.
• 23.6 Correction of Errors:
  If you discover errors in a filed VAT return (e.g., missed an invoice, or reported a wrong amount), the procedure is to file a replacement return for that period. The replacement completely supersedes the previous return for that period, so it must include all the correct figures for the period, not just the difference. In MyTax, there is a specific function to submit a corrected return (or on paper Form 4001 if necessary).
  • You should correct errors within 3 years (the correction window mentioned in Section 22).
  • If the correction results in additional tax, it should be paid by the time of filing the correction to avoid extra interest.
  • If it results in a refund, the Tax Administration will pay the additional refund, possibly with interest if the delay was on their side.
• 23.7 Non-Resident Filing Specifics:
  Non-resident companies registered for Finnish VAT (e.g., a foreign company with a Finnish VAT number) have the same filing obligations:
  • They typically file monthly returns (unless they are under the small business thresholds and have opted for quarterly/annual, which is rare for non-residents).
  • They must file electronically via MyTax. MyTax is available in English, which helps foreign businesses, but some parts may still be in Finnish/Swedish, so a local tax agent or understanding of those languages is useful.
  • Payments from abroad: non-residents must ensure they pay their VAT in euros to the Tax Administration’s bank accounts. The reference number and bank details are provided in MyTax for each taxpayer.
  • Non-resident businesses do not have additional or different requirements simply for being non-resident, aside from needing to obtain the login for MyTax (which might require Finnish e-identification or using a special token – often foreign companies will have a Finnish representative to handle filings even if a formal fiscal rep isn’t mandated).
  • One difference is that a non-EU business registered in Finland may have had to provide a security deposit in certain cases (though Finland doesn’t usually ask for guarantees except in cases of compliance risk).

24. Other Filings (EC Sales List, Intrastat, etc.)

• 24.1 EU Sales List (VIES Declarations):
  Finnish VAT-registered businesses must file an EU Sales List (ESL), known as “VIES report” (VAT Intracommunity Exchange System listing), if they:
  • Supply goods to VAT-registered customers in other EU countries (intra-Community supplies).
  • Provide certain services to VAT-registered customers in other EU countries, which are taxable under the main B2B rule (i.e., where the customer does a reverse charge). Finland’s ESL includes both goods and services provided cross-border to EU VAT-registered customers.
  Frequency and deadline: The ESL in Finland is typically filed monthly (if you have such transactions) and is due by the 20th of the month following the reporting period. For example, all reportable EU sales made in January must be reported by 20th of February. If you only have a few cross-border sales, you may be allowed to file quarterly ESL (this depends on volume – some countries allow quarterly if under a certain threshold of sales; Finland’s threshold for quarterly ESL used to be low, so most do monthly). It must be filed electronically (often via MyTax or file upload). [fintua.com]
  Details: The ESL requires listing each VAT-registered customer’s VAT number and the total value of supplies (goods and/or services) to them for that period. The Tax Administration uses ESLs to cross-check with other countries’ records. Late or incorrect ESL filings can result in penalties, though typically smaller than VAT return penalties.
• 24.2 Intrastat Declarations:
  Intrastat is a statistical report (not a tax return) for movements of goods within the EU. Businesses dispatching or receiving goods across Finland’s borders with other EU countries must file Intrastat if they exceed annual thresholds:
  • 2026 Intrastat Thresholds: Finland’s Intrastat thresholds are typically updated periodically. As a guideline, recent thresholds were around €600,000 for both arrivals (imports) and dispatches (exports) of goods in a year. (For example, in 2024 the Intrastat threshold for arrivals was abolished – Finland stopped requiring Intrastat for arrivals from 1 Jan 2026 as part of an EU simplification. The dispatches threshold might remain in that range.) [fintua.com], [fintua.com]
  • Because of changes in EU statistics rules, **starting 2026, Intrastat reporting for arrivals (imports from EU) is no longer required by Finland – data being collected via new methods (customs and tax data). Dispatches (exports to EU) likely still require Intrastat if above threshold. [fintua.com]
  • Frequency & deadline: Intrastat is filed monthly, with a due date of the 10th working day of the month following the reporting month in Finland. For example, January’s dispatches would be reported by around February 10. [fintua.com]
  • Intrastat declarations are submitted to Statistics Finland (often through the TYVI or other electronic system). Required details include the commodity code (CN8 code), value, weight, and partner country for each flow of goods.
• 24.3 Annual Returns:
  Unlike some EU countries, Finland does not require a separate annual VAT return or recapitulatory statement beyond the periodic returns. The monthly/quarterly (or yearly) VAT returns are considered final. There is no additional annual summary of VAT to be filed for most businesses. The logic is that the periodic returns and other filings (ESL, Intrastat) provide sufficient information. This simplifies compliance – once you have filed the last period of the year, there is no further VAT filing obligation except correcting any errors if needed. [innovatetax.com]
  Note: Finland did not require an annual sales listing for domestic customers either (some countries have Informative returns, but Finland currently does not have a SAF-T or similar in mandatory use for all VAT payers yet).
• 24.4 SAF-T or Digital Reporting Requirements:
  SAF-T (Standard Audit File for Tax) is an OECD standard for electronic exchange of accounting data. As of early 2026, Finland has not implemented a mandatory SAF-T reporting requirement for VAT. However, Finland is actively exploring real-time digital reporting as part of the EU’s upcoming “VAT in the Digital Age (ViDA)” initiative. According to Fintua, Finland expects to move towards full e-invoicing by 2030 under ViDA. This suggests that in coming years, Finland might introduce continuous transaction controls (CTC) or standard digital reporting (like SAF-T or real-time invoice reporting). [fintua.com]
  Currently:
  • No need to submit SAF-T files regularly. But during a tax audit, the Tax Administration may request electronic records; having the ability to export data in SAF-T format could facilitate compliance, though it’s not compulsory yet.
  • MyTax is used for all current digital communication and some prepayment of data (like for example, payroll withholding tax reports, etc.). For VAT, the EU is planning a new “Digital Reporting System (DRS)” in the future that could standardize digital reporting – Finland will implement whatever becomes EU law, likely after 2028. Businesses should keep an eye on these developments.
• Other filings:
  • Statistical Reports: In addition to Intrastat, companies may have to report some domestic trade statistics if requested by Statistics Finland.
  • Excise or Customs Declarations: Not directly part of VAT, but if dealing in excisable goods, separate filings are needed.
  • Local Listings: Finland does not require domestic sales or purchase lists for VAT purposes. However, companies in certain industries (like construction) must file periodic reports for tax control (e.g., construction workforce reports, which is separate from VAT but related to anti-fraud efforts).

25. Penalties and Interest

• 25.1 Late Filing Penalties (Failure to File or Late VAT Return):
  If a VAT return is filed late (after the deadline) or not at all, the Tax Administration can impose a late filing penalty (myöhästymismaksu). As of recent guidance:
  • The standard late filing penalty for VAT is €50 for each return if the return is submitted after the due date, even if no tax is due. (However, recent info suggests it may have changed to a daily accrual model: Fintua notes an initial €3 per day up to 45 days, max €135). After 45 days, a further 2% of the tax due (max €15,000) can be imposed. This seems to be a new structure: [fintua.com]
    • €3 per day for up to 45 days (capped at €135).
    • If over 45 days late, then €135 + 2% of the VAT due (with a cap of €15,000) as an additional fine. [fintua.com]
    • If an error is corrected after the due date (like an additional tax is reported), a smaller late filing charge might apply as well.
  • These amounts can be updated by law changes; always check current guidance. As of 2023, a flat late fee of €100 was common for late VAT returns; the new graded approach is aiming to be more proportional to delay and tax amount.
• 25.2 Late Payment Interest:
  If you pay your VAT after the due date (12th of the second month following the period), Finland charges late payment interest (viivästyskorko). [innovatetax.com]
  • The interest rate for late tax payment is tied to the base interest rate plus a % (in recent years, this has been 7% per annum for late taxes, but can vary slightly year to year depending on reference rates) – for example, around 7% was common in 2023.
  • Interest is usually calculated on a daily basis from the day after the due date until payment is made. There’s often a minimum charge (e.g., at least €3 or so).
  • Unlike some countries, Finland typically does not impose a separate percentage “penalty” for late payment beyond the interest, except potentially in cases of significant delay or deliberate non-payment.
• 25.3 Other Fines and Penalties:
  Finland can impose additional penalties in cases of more severe non-compliance:
  • Tax Increase (Veronkorotus): If a return is incorrect (understates tax) or a taxpayer fails to register when required, the Tax Administration can levy a tax increase, which is essentially a percentage of the underpaid tax as a punitive measure. The increase can vary typically from 5% to 20% of the shortfall depending on severity. For minor mistakes voluntarily corrected, often no penalty is charged, just interest. For more serious omissions found in audit, a higher surcharge can apply.
  • Negligence Penalty: For not keeping proper records, not issuing invoices/receipts (as noted, €300–€1000 for missing receipts), or failing to comply with invoicing and ESL/Intrastat obligations. [vero.fi]
  • Criminal penalties: In cases of deliberate tax fraud (tax evasion), criminal charges can be brought. Tax fraud in Finland can lead to fines or imprisonment in serious cases. There are gradations (tax fraud, aggravated tax fraud).
  • Incorrect OSS/IOSS filings: If participating in OSS/IOSS, similar penalties apply for late or missing returns, typically managed by the Member State of registration.
  • The Finnish system tends to favor compliance: timely voluntary corrections usually face minimal penalties (often just interest). Penalties escalate for willful or repeated non-compliance.
• Interest on VAT Refunds: If the Tax Administration delays a refund beyond a certain statutory period without justification, interest may be payable to the taxpayer. Finland historically has had a concept of refund interest if the refund takes too long (for example, beyond 30 days after the due date, interest at a low rate might be credited to the taxpayer). This encourages timely refunds.

26. Other Notable VAT Features

• Small Business VAT Relief (ALV-alennus): Finland provides a relief for small businesses even after they register. If a VAT-registered business’s annual turnover is below certain thresholds, it can claim a refund/relief of VAT to ease the burden:
  • For annual turnover up to €15,000, essentially all VAT paid can be refunded, meaning the business effectively doesn’t bear VAT (similar to being exempt). As turnover increases above €15k, the relief tapers off.
  • The relief is phased out linearly, with no relief once turnover reaches €30,000 (the upper limit).
  • This relief is calculated and claimed at year-end: you report the total turnover and VAT for the year in the last return, and MyTax will automatically calculate the relief and credit it.
  • This scheme essentially allows very small businesses who choose to register (or slightly exceed the threshold) to not lose out entirely; they either pay no VAT or reduced VAT to the state. It’s financed by the government and is unique to a few countries.
• Aland Islands: As mentioned, the Åland Islands are outside the EU VAT area (though part of Finland’s customs territory). Deliveries between Åland and mainland Finland are treated like EU cross-border transactions (VAT-wise):
  • Goods shipped from mainland Finland to Åland are treated as exports (0% VAT) and on arrival to Åland, import VAT is due (Åland applies Finnish VAT as it’s part of Finland, but as if it was a separate customs zone).
  • Similarly, goods from Åland to Finland are treated as imports (Finnish mainland businesses pay acquisition VAT).
  • Tourism note: Travelers going from Åland to mainland or vice versa face duty-free rules similar to traveling outside the EU. Businesses need to consider these rules if trading with customers in Åland.
• Triangulation Simplification: Finland participates in the EU triangulation simplification for 3-party chain transactions to avoid multiple VAT registrations. If Finnish company B buys goods from company A in another EU country and A ships directly to B’s customer C in a third EU country, B doesn’t need to register in C’s country under the simplified triangulation rules, provided certain invoice notations (“triangulation simplification”) are used. B would report the sale in its ESL as triangulation, and the buyer C does an acquisition. This is a niche but important simplification for EU trade that Finland implements. [innovatetax.com], [innovatetax.com]
• Economic Units (“Fixed Establishments”): Finnish VAT law closely follows EU definitions of fixed establishments for VAT purposes. If a foreign company has human and technical resources in Finland (e.g., a branch or significant operations), it may be considered to have a fixed establishment here and thereby needed to register. However, short-term activities like one-off installation might not create an FE if resources are not “permanent.”
• Real-Time Digital Reporting (Upcoming): The EU’s proposed reforms (VAT in the Digital Age package) might require digital reporting of individual transactions (e-invoices or similar) in coming years. Finland is preparing for mandatory e-invoicing by 2030 as part of this transition. While not yet law, companies should be aware of this trend. [fintua.com]
• VAT compliance culture: Finland is known for a high level of tax compliance and advanced digital systems. Initiatives like the mandatory receipt rule (see Section 20) and encouraging e-invoicing show Finland’s proactiveness in preventing VAT evasion and modernizing VAT collection.
• No VAT on certain temporary schemes: Finland occasionally enacts temporary VAT measures for policy reasons. For example, to alleviate consumer costs, Finland had a temporary 0% VAT on passenger transport services for a 4-month period in early 2023 (Jan–Apr 2023), and a temporary reduced 10% VAT on electricity for winter 2022–2023. These measures have since expired, but it demonstrates how the government can flex VAT rates in response to economic conditions. Always check if any temporary VAT measures are in effect (especially around essential goods or energy). [vero.fi]
• Taxable Status of Public Bodies: While generally government activities aren’t taxed, in Finland the State and municipalities are considered taxable persons for activities where they compete with businesses (to avoid distortions). Also, municipalities may have to account for VAT on some non-business sales of certain goods (like fixed assets) if they had enjoyed VAT refunds on them via special refund schemes for public bodies. This is more relevant to public sector accounting but notable as a Finnish nuance. [finlex.fi]
• Advance rulings and guidance: Finland encourages obtaining advance rulings for complex VAT issues. Binding rulings can be requested from the central tax authority and provide certainty on how to treat a transaction. The Tax Administration also regularly updates its Detailed Guidance publications, which reflect current interpretations of law (e.g., the VAT Invoicing Requirements guide updated as of 2023 in Finnish/Swedish, soon to reflect 2024–26 rate changes). [vero.fi]
• No Overlap of Sales Tax: Finland has no other general sales tax – VAT is the only consumption tax of this type. There are excise taxes on specific goods (alcohol, tobacco, fuel, etc.), but those are separate from VAT.
• Cross-border shopper considerations: Travelers from outside the EU (e.g., tourists) can get VAT refunds on purchases in Finland under the retail Export Scheme (tax-free shopping) when goods are exported in luggage. However, that’s a consumer scheme, not covered by this business-focused guide.