Finland: VAT Rate Increase Proposal Under Consultation
Finland is seeking public feedback on its proposal to increase the value-added tax (VAT) rate from 10% to 14% on goods including transport, accommodation, and medicines.
The Finnish Ministry of Finance published a consultation Thursday to amend the VAT law to accommodate the rate hike, expected to take effect from January 1, 2025.
The broader range of products affected by the new rate includes cultural performances, sports activities, art, books, healthcare products, and diapers, while newspapers and magazines are excluded.
The ministry anticipates generating 245 million euros ($265 million) from these changes, factoring in increased expenses and potential impacts on product demand.
The consultation period closes on August 19.
