VAT Registration in Finland

Entities in Finland are required to register for VAT if the value of their goods/ services sold during the 12-month accounting period exceeds or is anticipated to exceed the registration threshold of EUR 20,000 which was recently raised. As such, we invite you to talk to our Finnish agents and learn more about VAT registration in Finland, and related requirements. Our local team can also help you open a company in Finland.

Quick Facts
We offer VAT registration services in Finland	YES
Standard VAT rate in Finland	25.5%
Lower rates	– 14% for most food products, – 10% for pharmaceutical products, newspapers, books, etc.
Who needs VAT registration?	Companies with activities in Finland. The registration threshold is EUR 20,000.
Authority in charge	Finnish Tax Administration
Time frame for registration	Around 3 weeks
Exemptions available	0% VAT for supplies and services, education, health and social care, exports, etc.
Period for filing	Monthly or quarterly
VAT returns support (YES/NO)	YES
Intra-community supplies/ exports of goods	No VAT imposed
Local tax agent required	A fiscal representative is recommended, especially for businesses from non-EU countries.
Who collects the VAT?	The good or service supplier in Finland
Documents for VAT registration	Certificate of Incorporation, IDs of business owners, standard forms, etc.
VAT number format	Country code FI, followed by 8 digits
VAT de-registration situations	– voluntary de-registration of a firm, – company cessation, other reasons

VAT registration for non-Finnish companies

Your business may need to file for non-resident VAT registration if it is not based in Finland, but makes taxable deliveries of products or services here. According to the EU-VAT Directive, in some circumstances, foreign traders are required by law to register for VAT to report taxable transactions and declare the VAT that has to be charged. Before starting any taxable transactions, if relevant, all enterprises with any commercial activities in Finland must assess their compliance obligations. Our company formation agents will not only help you open a business in this country, but they can also assist you with VAT registration in Finland. 

The appointment of a representative is necessary to register for VAT if the foreign company lacks a domicile or fixed establishment in an EU country. Finland must be the representative’s tax domicile. The representatives are approved by the Finnish Tax Administration. They ought to be qualified and experienced enough to carry out their duties. Representatives should typically be included in the Trade Register. Only in certain cases, natural persons are permitted to serve as representatives.

Our Finnish company formation agents can explain the required paperwork in this case. You may consult with our experts for hassle-free VAT registration in Finland and also check the following infographic:

VAT registration for Finnish companies

Before beginning operations, your business must submit an application for VAT registration with the Finnish tax authorities. The late submission of the registration application may result in financial penalties. There is a possibility to make a VAT group consisting of two or more Finnish resident businesses that share the same VAT identity. The process of getting the VAT number typically takes one month if your file is complete.

Companies based in Europe are not required to appoint a VAT agent. They may, however, engage a proxy holder (agent) to handle the tax requirements on their behalf to simplify their interactions with the local tax authorities. It is not essential to provide a bank guarantee in this situation. As an EU company, if you need more assistance regarding VAT registration in Finland, our experts can guide you. In addition to informing you about VAT, our agents can also assist you if you are interested in setting up a company in Finland.

Please check this video presentation with details about the VAT registration in Finland:

The VAT rates in Finland 

The VAT rate in Finland was set at 25.5%, starting with September 2024. If you are applying for VAT registration in Finland, it is important to understand its implications, plus information about the current VAT rates:

• Postal services, education, banking, insurance, and interpretation services for the deaf are exempt from VAT in Finland;
• 0% VAT is applied on gold, banknotes, insurance, and financial services offered to a company based outside the European Union;
• A reduced VAT rate of 14% is applied to restaurant services, animal feed, accommodation, beverages, and food.

VAT changes in 2025 in Finland

In 2025, many European countries introduced changes to their tax systems, including new VAT rates. Finland is also among these countries, and the following information may be useful for you to implement the new rules in your company:

• Starting with January 2025, small businesses in Finland will not benefit from VAT reductions. Consequently, the VAT reduction, that exempted small firms in Finland from VAT on revenue below the VAT threshold, is now removed.
• The 10% VAT in Finland for some of the goods and services has been increased starting with January 2025. As such, the new rate is now 14% for books, medicines, sports & fitness services, sporting events, and accommodation.
• Another update refers to the goods sold, where the VAT rate applies depending on the date of delivery. As such, the respective goods are seen as delivered when they have entered the buyer’s possession.

Applicable VAT rate at the turn of the year in Finland

What you need to know about VAT in 2025 in Finland is that the rate for goods & services applies depending on the delivery date. Thus, goods are subject to a 10% VAT rate if delivered before December 31st, 2024, even if the tax is paid in 2025. A 14% VAT rate applies starting from January 2025 for certain goods and services, based on the payment date if the seller receives an advance in this sense. We invite you to learn more about VAT rates in Finland from our experts who can also help you with the registration formalities for paying this tax.

Updated news about the VAT return form in Finland

The current VAT return form can be used if you are filling all data in a paper form. This applies to sales subject to a VAT of 24% and 25.5% respectively. Business owners also have the option of filling out VAT returns online and this is even recommended. In this sense, the VAT return can also be filled online for domestic supplies at 25.5%, the standard VAT rate in Finland. Furthermore, the amounts must be filled in corresponding boxes for Q3 of 2024 that should include sales at both standard VAT rates, 24% or 25.5%. We recommend that you understand these important things and that you fill out the VAT return forms correctly with the help of our specialists. We are at your disposal with support in VAT matters in Finland.

What’s new in Finland in terms of taxes?

According to the latest information about the Finnish tax system, a law is to be proposed regarding the taxation of full and plug-in hybrid electric cars. Thus, starting with January 1st, 2026, the purchase of vehicles of this type could also include a specific tax. In addition, tax changes are also proposed in the real estate sector. It is possible that from the same date the transfer tax rate of 3% for the purchase of property, but also around 1.5% on specified shares will apply. We remind you that our tax specialists, VAT included, are aware of the changes brought by law in the taxation system in Finland. You can benefit from specialized consultancy so that your company aligns with the requirements in this regard.

It is crucial to get the services of experts to understand these implications. Our consultants in company incorporation in Finland can guide you if your products and services are subject to VAT or exempt from it.

Besides this, if you are interested in getting a virtual office in Finland, our agents can help you. They can explain different virtual office packages and you can pick one that suits well to your business needs.  For expert assistance, opening a company in Finland, and more, please contact our Finnish agents.