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 15,000. Get in touch with our Finnish agents to learn more about VAT registration in Finland. They can also help you open a company in Finland.
VAT registration for non-Finnish companies
Your business may need to obtain a non-resident VAT registration if it is not based in Finland, but makes taxable deliveries of products or services here. This is under 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 on an application 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.
You are required to submit a list of supporting documentation to register for VAT on your application. Our Finnish company formation agents can explain to you about the required paperwork. Please consult with our experts for a hassle-free VAT registration in Finland. They can also help you to register a company in Finland.
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. The corporation is entirely liable for paying its VAT obligations. 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. This is one of the least corrupt countries in the world, and you can register and conduct business online. Here, the business quality is enhanced by access to good network infrastructure and a thriving startup community. As a new entrepreneur, this allows you to concentrate on the key things.
Requirement for Finnish VAT registration
Country-specific VAT criteria were withdrawn for EU distance sales starting with July 2021 in favor of an EU-wide level of EUR 10,000. Any revenue from distance selling below this new threshold is still subject to VAT in the country of origin or the business’s home country. If a taxpayer makes no taxable income in Finland, but intends to make it outside of Finland, he may choose to register voluntarily. This applies to taxpayers who are either residents of Finland or who have a business establishment there. A non-resident company may voluntarily register for VAT if it makes reverse charge supplies to Finland. There is no threshold for non-residents for VAT registration. In Finland, non-resident companies are required to register for Value Added Tax (VAT) if they exceed certain thresholds for taxable supplies of goods or services. If you are interested to know about that threshold, you are welcome to get in touch with our agents. Please note that these thresholds apply to both EU and non-EU companies. If a non-resident company is required to register for VAT in Finland, it must also appoint a VAT representative in Finland. This is responsible for ensuring that the company complies with Finnish VAT regulations and is the point of contact for the Finnish Tax Administration.
As a foreign or a local company, if you are looking for VAT registration in Finland, our agents can assist you. Besides this, our company incorporation agents can help you if you want to incorporate a branch in Finland.
The VAT rates in Finland
If you are applying for VAT registration in Finland, it is important to understand its implications. Our company incorporation agents will assist you in this regard. You can also find a general guide below about the VAT rates in Finland:
- Electricity and transportation value-added tax rates are reduced temporarily starting with 2023;
- 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, beverages, and food;
- Another reduced VAT rate of 10% is applicable on accommodation, cultural events, newspaper or magazine subscriptions, books (e-books, audiobooks), pharmaceutical products, and passenger transportation services;
- a standard VAT rate of 24% is imposed on all other taxable goods and services.
It is crucial to get the services of experts in understanding these implications. Our company incorporation consultants in Finland can guide you if your products and services are subject to VAT or exempt from it. For expert assistance, contact our company formation agents for their services.
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.