VAT legislation has been harmonized in many respects across the EU, including in Finland. The EU directive is binding for each member state, but the choice of implementation is left to each EU country which needs to adjust it according to its national law.
In the past, Finland used to apply a system called turnover tax (sales tax) prior to the introduction of the present VAT system which was introduced in 1994 as a result of Finland’s EU membership.
Everything you need to know about VAT registration, returns, Tax Representation (if applicable), and your legal duties in Finland is conveniently located right here!
The Value Added Tax Act, Act No. 1501/1993(Arvonlisäverolaki) is the main piece of Finnish legislation. Other Finnish laws are also relevant to VAT implementation. Penalties, for example, are covered by the Act on Assessment Procedures for Self-Assessed Taxes (768/2016).
VAT is generally levied on all supplies of goods or services:
VAT is charged on the following types of transactions:
Any sale or other provision of products or services, including barter exchanges and specific business presents, whether invoiced or not, are referred to as a “supply.”
Taxable transactions also include any action that removes goods or services from a business, whether or not they are charged for, such as loans, gifts, or “self-supply,” which refers to the private use of business assets.
Among the self-supplies are:
Taxable persons include:
|VAT in local languages||Arvonlisäverolaki (ALV)|
|VAT number format||FI+8 digits|
|VAT rates||Standard 24%; Reduced 14% & 10%|
|Zero-rated (0%) and exempt|
|Frequency||Monthly (or in some instances quarterly or annually)|
|Intra-Community acquisitions||EUR 10,000|
|Intra-EU Distance sales and electronically supplied services to consumers (OSS)||EUR 10,000|
|Recovery of VAT by non-established businesses||Yes|
|Compliance Returns and Deadlines|
|VAT Return||12th day of the second month following the end of the accounting period|
|European Sales Listing||20th day following the end of the filing period|
|Intrastat M||11th day following the end of the filing period|
|Annual Return||Annual returns are not required in Finland.|
Last Updated: 08/08/2022
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