Finland Implements VAT Rate Increase and Reclassification Effective September 2024 – Action Steps for Businesses

• Finnish government introduced changes to VAT rates, with more changes scheduled for 2025
• Standard VAT rate increased from 24% to 25.5% on 1 September 2024
• Reduced rates of 10% and 14% remain unchanged, but certain supplies will be reclassified
• VAT relief for small businesses will be eliminated and threshold for minor business activity increased in 2025
• Businesses should understand scope and impact of changes, update financial administration and accounting systems, and review business agreements for necessary adjustments.

Source: bdo.global

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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