Finland: Proposed Amendments to VAT and Taxation Laws for 2025

The Finnish Parliament (Eduskunta) accepted Bill No. HE 50/2024 vp for consideration, aiming to amend the VAT Act and the Taxation Procedure Act of Self-Initiated Taxes. This bill is part of the 2025 budget proposal and includes the following measures:

1. Abolishing the existing tax relief related to the lower limit.
2. Extending Finland’s national tax exemption for small activities to nonresident entrepreneurs based in other EU member states, under specific conditions.
3. Allowing entrepreneurs with a fixed place of business in Finland to apply the tax exemption in other EU member states.
4. Permitting resident entrepreneurs to continue applying the tax exemption for minor activities in Finland, even if their annual turnover in the EU exceeds 100,000 euros.
5. Introducing a special system where the tax exemption for small companies would apply to countries beyond the member state of establishment.
6. Clarifying that the procedure for correcting quarterly declarations related to the special system will be governed by the VAT Act and the Taxation Procedure Act of Self-Initiated Taxes.

These laws are set to come into effect on January 1, 2025.

Source: eduskunta.fi

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