- Finland will lower its reduced VAT rate from 14% to 13.5% starting 1 January 2026.
- The new rate applies to groceries, restaurant and catering services, books, pharmaceuticals, passenger transport, accommodation, and certain cultural, sport, and leisure services.
- The applicable VAT rate is based on the time of supply: delivery date for goods and completion date for services.
- Advance payments received before 1 January 2026 are taxed at 14%, even if the supply happens after the rate change.
- Businesses must update invoicing, accounting, and VAT reporting to reflect the new rate from 1 January 2026.
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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