Finland VAT Guide 2026 (ALV)
Finland's value-added tax (arvonlisävero, ALV) applies at three rates: 25.5% standard, 14% reduced, and 10% lower reduced. The registration threshold is €15,000 in annual turnover.
Value-added tax in Finland is regulated by the Finnish Tax Administration (Verohallinto) and aligned with EU VAT directives. Businesses making taxable supplies in Finland must register for VAT once their annual turnover exceeds €15,000. Below this threshold, registration is voluntary. VAT-registered businesses charge VAT on their sales and can deduct VAT on their purchases (input VAT).
VAT Rates 2026
The standard VAT rate is 25.5% (increased from 24% in September 2024). This applies to most goods and services including electronics, household items, clothing, alcohol, tobacco, and professional services. The first reduced rate of 14% applies to food and animal feed, restaurant and catering services, and certain cultural services. The second reduced rate of 10% applies to books, newspapers, magazines, pharmaceuticals, passenger transport, accommodation services, and cultural and entertainment events.
Registration Threshold
The VAT registration threshold is €15,000 in annual turnover (sales excluding VAT). If your turnover exceeds this amount in a 12-month period, you must register for VAT. Small businesses with turnover below the threshold may voluntarily register, which can be beneficial if you have significant input VAT to reclaim. Non-resident businesses selling to Finnish consumers are required to register regardless of turnover unless they use the EU's One Stop Shop (OSS) scheme.
Filing and Returns
VAT returns are filed through the OmaVero online service. The frequency of filing depends on the business's accounting period. Most businesses file quarterly (by the 12th of the month following the end of the quarter). Annual returns are available for businesses with a turnover of less than €50,000, provided they meet certain conditions. Monthly filing is mandatory for large businesses or those with significant VAT liabilities. Late filing incurs penalties starting at €45 and increasing based on delay duration and amount owed.
Exemptions and Zero-Rated Supplies
Certain supplies are exempt from VAT without credit (meaning no input VAT recovery): financial services, insurance, healthcare services, educational services, and real estate transactions (with some exceptions). Export of goods outside the EU is zero-rated (0% VAT). Intra-Community supplies of goods to other EU businesses are also zero-rated, provided the buyer's VAT number is valid. International transport services are generally zero-rated.
Import VAT and Distance Selling
Goods imported into Finland from outside the EU are subject to VAT at the applicable rate, plus any customs duties. The Import One Stop Shop (IOSS) scheme simplifies VAT for low-value imported goods (under €150). For distance selling of goods from other EU countries to Finnish consumers, the Union One Stop Shop (OSS) scheme applies, allowing businesses to declare and pay VAT in a single EU member state.
FAQs
Can I reclaim VAT on business purchases before registering?
Yes, you can reclaim VAT on purchases made up to 6 months before your VAT registration date, provided the goods or services are related to your taxable business activities.
What happens if I exceed the €15,000 threshold?
You must register for VAT from the date your turnover exceeds the threshold. You should apply for registration within two weeks of exceeding it.
Are digital services subject to VAT in Finland?
Yes, digital services (apps, streaming, e-books, online courses) supplied to Finnish consumers are subject to Finnish VAT at the applicable rate, usually under the EU's One Stop Shop scheme.