Finland VAT Rates 2026

Finland VAT Rates at a Glance

What is VAT Called in Finland?

In Finland, value added tax is officially known as Arvonlisävero (ALV). It is administered by the Verohallinto (Finnish Tax Administration).

Like all EU member states, Finland operates VAT under the EU VAT Directive (2006/112/EC), which sets the framework for standard and reduced rates, exemptions, and the reverse charge mechanism across all 27 EU countries. The Verohallinto is responsible for VAT registration, returns, enforcement, and issuing VAT rulings.

Reduced VAT Rate in Finland (14%)

Finland applies a reduced VAT rate of 14% to the following categories of goods and services (subject to the specific conditions of Finland VAT law):

• ✓Food and beverages (non-alcoholic)
• ✓Restaurant and catering services
• ✓Books and educational materials
• ✓Pharmaceutical products
• ✓Sports and fitness services
• ✓Cultural services
• ✓Passenger transport
• ✓Hotel accommodation

Additionally, Finland applies a super-reduced rate of 10% to:

• ✓Newspapers and periodicals
• ✓Books
• ✓Cultural events
• ✓Exercise and sports services
• ✓Passenger transport

Note: Reduced rate eligibility depends on the specific nature of the supply and how goods or services are classified under Finland VAT law. Always verify classification with a local VAT adviser before applying a reduced rate.

VAT Registration in Finland

Once registered, businesses are issued a Finland VAT number (FI + digits). This number must appear on all invoices and be verified on the EU VIES database before zero-rating intra-EU B2B supplies.

Non-EU businesses are generally required to register for Finland VAT with no registration threshold — the first taxable supply in Finland triggers an immediate registration obligation. Non-established businesses may need to appoint a local fiscal representative depending on the nature and location of their business.

Filing VAT Returns in Finland

VAT returns in Finland must be submitted electronically via the Verohallinto portal. Most member states require payment of VAT due simultaneously with the return submission — check whether Finland requires separate payment instructions or if bank debit is automatic.

VAT Invoice Requirements in Finland

To be valid for VAT recovery purposes, Finland VAT invoices must include the following mandatory information (consistent with Article 226 of the EU VAT Directive, plus any additional national requirements):

1. 1Supplier name, address and Finnish VAT number (FI + 8 digits)
2. 2Customer name and address
3. 3Date of issue and date of supply
4. 4Sequential invoice number
5. 5Description, quantity and unit price
6. 6VAT rate (0%, 10%, 14%, or 25.5%) and VAT amount
7. 7Total amount payable

Simplified invoices (without all fields above) may be issued where the total amount does not exceed €100 excluding VAT, subject to Finland's national rules on simplified invoicing.

Reverse Charge Mechanism in Finland

Finland applies reverse charge to construction services supplied to VAT-registered recipients, and to B2B services received from foreign businesses. The recipient self-accounts via the monthly ALV return.

Under the reverse charge, the recipient of the supply (rather than the supplier) is responsible for declaring and paying VAT. The recipient self-accounts for VAT on their Finland VAT return — declaring both output VAT (as if they had charged it) and input VAT (which they may recover subject to normal rules). The supplier issues an invoice without VAT with a note such as "Reverse charge — Article 196 EU VAT Directive."

EU OSS and Finland

Finnish businesses register for OSS via OmaVero (vero.fi). Finland has a high rate of OSS adoption among its significant e-commerce and digital services sector.

Under the EU's One Stop Shop (OSS) scheme introduced in July 2021, businesses selling digital services or goods B2C to customers in Finland (and other EU countries) can register in a single EU member state and file a single quarterly return covering all EU consumer sales. OSS avoids the need to register for VAT separately in each of the 27 EU member states where you have customers. The Finland VAT due on your OSS return is paid in your registration country and forwarded to Finland's Verohallinto.

Finland VAT: Background & History

Finland introduced VAT (ALV) in 1994, relatively late in EU terms — Finland joined the EU in 1995. Finland raised its standard rate from 24% to 25.5% on 1 September 2024, one of the EU's largest recent single rate increases, driven by fiscal consolidation needs. Finland operates a lower registration threshold of €15,000 with a tax relief scheme (alarajahuojennus) that phases in VAT obligations for small businesses, a social policy aimed at supporting micro-entrepreneurs.

Practical VAT Compliance Tips for Finland

Frequently Asked Questions — Finland VAT

Finland VAT Tools