If you’re wondering how VAT works in Finland, what rate applies in 2025, and what it means for your wallet or your business, this text clears up all doubts. We’ll guide you through the whole topic calmly—clearly, straight to the point, and without jargon.
How does VAT work in Finland?
VAT in Finland is a classic value-added tax, charged on the sale of goods and services. The seller adds VAT to the price, and the buyer pays the gross amount. Standard stuff. If you run a business, you can deduct it; if you’re shopping as a private individual, you pay it in the price.
The basic mechanism is simple: you buy a product—you pay VAT; you sell it on—you charge VAT to the customer. If you’re not registered as a VAT taxpayer, you’re not entitled to deductions and you operate on gross prices.
What is the VAT rate in Finland in 2025?
In 2025, a new, increased standard rate applies. Finnish VAT is now 25.5%—and that’s what you’ll pay when buying most goods and services.
But that’s not the only option. Finland also applies two reduced rates:
14% – applies to, among other things, food, catering services, hotels, books, passenger transport, and some cultural events,
10% – applies to printed press, magazines, and periodicals.
There are also situations where a zero rate applies, for example for exports outside the EU or certain international services. So in 2025, Finnish VAT rates are 25.5%, 14%, 10%, or 0%, depending on what you buy or sell.
What do the individual rates cover?
To make it clearer:
If you buy clothing, electronics, sports equipment, or furniture—you pay 25.5%.
If you go to a restaurant, book accommodation, buy a book, or a bus ticket—you’ll pay 14%.
If you subscribe to a newspaper or magazine—you’ll be charged 10% VAT.
And if you ship goods from Finland to another EU country or outside Europe—it may be 0%, provided everything is properly documented.
In practice, the VAT rate in Finland depends on what you’re buying or selling—and to whom.
When do you need to register for VAT in Finland?
Do you run a business and sell something in Finland? At some point, you’ll need to register for VAT. The registration obligation arises when you exceed the turnover threshold—currently EUR 15,000 per year. However, if you’re a company based outside Finland and start selling on the Finnish market, you often have to register earlier—sometimes even from the very first transaction.
A registered company receives a Finnish VAT number, adds VAT to sales, files returns, and keeps records. Everything can be handled online—but you must meet deadlines and apply the correct rates.
How is VAT settled in Finland?
In Finland, VAT is settled monthly, quarterly, or annually—depending on the size of the business. Everything is done through the local tax system. If you sell goods from Finland to another EU country, you can apply the 0% rate, but you must have proper documentation (e.g., proof of transport and the buyer’s VAT number). If you sell to a private customer in Finland, it doesn’t matter where you’re based—Finnish VAT rates apply and you must account for them. This can be handled through the OSS (One Stop Shop) system, but only for B2C sales.
Finnish VAT and e-commerce / online sales
Do you sell products to Finland through an online store? Do you have individual customers? Then you fall under local VAT rules. Exceeding the sales threshold to Finland (or choosing to use OSS) means you must charge Finnish VAT—at the correct rate. It won’t always be 25.5%.
For example:
you sell food—you charge 14%;
subscriptions—10%;
household appliances—25.5%.
You need to know this, because incorrect VAT charging means corrections, stress, and potential audits.
VAT in Finland from the consumer’s perspective
If you’re a private individual shopping in Finland, VAT is already included in the price. Whether you pay 10%, 14%, or 25.5% depends on what you buy. However, with such a high standard rate, prices of some products may be noticeably higher than, for example, in Poland. Fortunately, food and transport are not taxed at the highest rate—which helps with everyday expenses.
What has changed and why is it worth knowing?
As of September 2024, the standard VAT rate was increased from 24% to 25.5%. Reduced rates remained unchanged. The change was a response to the economic situation and rising costs of running the state. For businesses, this means the need to update accounting systems, price lists, and training.
If you sell to Finland—you must operate according to the new rate. And if you’re a buyer—be aware that prices of some goods have risen precisely because of the tax.
What’s worth remembering…
VAT in Finland is straightforward but demanding. Current Finnish VAT rates are:
25.5% – standard,
14% – catering, accommodation, books, food,
10% – press and periodicals,
0% – only in exceptional, well-documented cases.
Finnish VAT may affect you as a seller, importer, consumer, or e-commerce business. And although the Finnish tax system is considered transparent, mistakes are not welcomed. Do you know the rates? Do you know what VAT applies to your product in Finland? Do you understand when registration is required? Great. You’ll avoid stress and unpleasant surprises.