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 |
Table of Contents
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 of making 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 is set at 25.5%. 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 2026 in Finland
In 2026, 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 in 2026, the reduced 14% VAT rate was lowered to 13.5%. This VAT rate applies to various food & beverages, passenger transport services, medicines, books, accommodation, cultural events, etc.
- VAT payments made before January 2026 are levied at a 14% rate.
- On the other hand, goods and services that were previously subject to 10% VAT are now levied with 14% rate. In addition, specific sanitary products that were levied with 25.5% are now taxed at 14% rate.
- The same 25.5% is the VAT rate for electric & hybrid cars purchased in Finland in 2026.
Applicable VAT rate at the turn of the year in Finland
What you need to know about VAT in 2026 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 2026. 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.
Ready to register for VAT in Finland in 2026? Please explore this article and also contact our specialists in company incorporation in Finland. We can act as tax representatives for your business in Finland.