The Finland Tax Agency presented the draft of the proposed adjustment, effective from December 2022 until 30 April 2023.
Possible VAT changes in 2023:
- Exempting passenger transport services from the 10% VAT beginning on 1 January 2023 through 31 December 2023 and
- Decreasing the VAT rate on electricity, excluding transmission, from 24% to 10% from 1 December until 30 April 2023
Other possible tax-related changes are summarized as follows:
- Increasing the threshold for company car accessories’ tax exemption from EUR 850 to EUR 1,200
- Introducing a new tax credit available to taxpayers who spent more than EUR 2,000 on electricity between 1 January 2023 and 30 April 2023
- Excluding home loan deductions
- Establishing income thresholds for individual taxpayers 60 years of age and older to get the work-income credit
- Removing the disability credit from income tax in general as of 1 January 2023
- Reducing the withholding percentage rate on tax cards in 2023 to account for qualifying household expenses and
- Recommending a basic additional deduction from 2023 and a higher one from 2024 for research and development.
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