Most businesses in Finland use a monthly accounting period to report their VAT to the tax authorities. However, businesses can apply to extend their accounting period to either a calendar quarter or a year if they do not exceed certain annual turnover thresholds.
The threshold for a quarterly accounting period is 100,000 euros, meaning that businesses with a turnover of less than this amount can apply to report their VAT on a quarterly basis. Similarly, the threshold for an annual accounting period is 30,000 euros, allowing businesses with a turnover below this amount to apply to report their VAT on an annual basis.
Read more about VAT recovery and VAT returns in Finland in our comprehensive guide.
VAT is calculated based on the total value of a transaction and cannot be reduced by expenses or other amounts. However, the amount of VAT owed can be decreased, and even result in a negative balance, by deducting the VAT previously paid on certain purchases, which is known as “input VAT.”
For input VAT to be available as a credit, the following general conditions must be met:
Last Updated: 14/12/2023
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