VAT in Finland
As a member of the European Union, Finland has adopted VAT legislation that is largely harmonized with other EU Member States. This means that there are many similarities in the way that VAT is applied in Finland and other EU countries, as the EU has worked to create a common framework for VAT across the region.
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.
Everything you need to know about VAT registration, returns, Tax Representation (if applicable), and your legal duties in Finland is conveniently located right here!
Selling in Finland?
Scope of Taxation
As a general rule, VAT is applicable to all supplies of goods or services in Finland, regardless of whether they are produced or provided in Finland or abroad.
- The goods or services were produced, manufactured, or provided within the borders of Finland.
- Legal entities who are required to pay VAT on their business activities.
- The activities carried out by taxable persons in the pursuit of their commercial or economic activities.
Finland considers its territorial seas as part of its VAT territory. However, the Åland Islands are treated as outside the Finnish VAT territory. Nonetheless, sales made within the Åland Islands are subject to VAT in the same manner as sales made within Finland.
VAT is charged on the following types of transactions:
- A taxable person’s provision of goods or services in Finland
- A taxable person’s intra-Community procurement of goods from another EU Member State
- The importation of items from outside the EU, regardless of the importer’s status
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:
- Selling items to employees, such as canteen meals or vending machines
- Sales of business assets
- Hiring or lending goods to another person
- Commissions charged for selling on someone else’s behalf
- Goods that have been taken out of the business by employees for personal use, either temporarily or permanently
- Services provided to the company but then used privately
Taxable persons include:
- Independent entities that carry out economic activity
- Non-commercial entities such as public bodies who carry out an economic activity of commercial value
Download the Finnish VAT Guide
Finland – General VAT information
| Tax authority | Verohallinto |
| VAT in local language | Arvonlisäverolaki (ALV) |
| Currency | € Euro |
| VAT number format | FI + 8 characters |
| FI07524216 | |
| VAT rates
|
Standard 24%; Reduced 14% and 10%; |
| Zero-rated (0%) and exempt | |
| Thresholds | |
| Registration | |
| Established | EUR 15,000 |
| Non-established | None |
| Intra-EU Distance sales and electronically supplied services to consumers (OSS) | EUR 10,000 |
| VAT Group | Allowed- but not mandatory |
| Voluntary Registration | Available-but not mandatory |
| Intra-EU Dispatches | EUR 90,000 |
| Intra-EU Arrivals | EUR 150,000 |
| Recovery of VAT by non-established businesses | Yes |
| Compliance Returns and Deadlines | |
| VAT Returns | 12th day of the second month following the end of the accounting period |
| Frequency | Monthly (or in some instances quarterly or annually) |
| European Sales Listing | 20th day following the end of the filing period |
| Intrastat | 11th day following the end of the filing period |
| Electronic Invoicing | While electronic invoicing is generally not mandatory in Finland, there is a requirement for B2G (business-to-government) transactions to use electronic invoicing under Law 241/2019. |
Last Updated: 14/12/2023
Disclaimer
The information provided by Global VAT Compliance B.V. on this webpage is intended for general informational purposes only. Global VAT Compliance B.V. is not responsible for the accuracy of the information on these pages, and cannot be held liable for claims or losses deriving from the use of this information. If you wish to receive VAT related information please contact our experts at support@gvc.tax