Finland Finland

Goods

Web: Tax Agency


Tax rate

The general VAT rate is 24%. This rate is applied on most goods and services.


Reduced VAT rate

14%:

  • groceries
  • feed
  • restaurant /catering services.

10 %:

  • books
  • newspapers and periodicals
  • pharmaceutical products
  • physical exercise services
  • film screenings
  • entrance fees to cultural and entertainment events
  • passenger transport
  • accommodation services
  • royalties for television and public radio activities

0 %:

The tax legislation provides for cases of applying a zero rate. For example, tax-exempt sales of member’s magazines and advertisements to non-profit corporations.

Threshold

The introduction of the new rules has lowered the registration threshold to 10 thousand euros.

Deductible VAT

As a taxpayer carrying out VAT-subject transactions, you can deduct VAT included in any goods and services that you buy from others. You can only deduct VAT if you have purchased goods or services for a purpose related to a commercial activity for which you are subject to VAT.

Registration procedure

To register a foreign company, it is necessary to send a package of documents in paper form to the tax office.

The package of documents should include:

1) Correctly completed registration forms

2) Power of attorney for signing, if the documents are signed by a third party

3) An extract from the commercial register, translated into Finnish or Swedish

The tax authority may require additional documents, for example, the article of association.

Tax representative

A foreign business without a branch in Finland is obliged to appoint a tax representative for registration.

VAT returns filing and VAT payment date

Simultaneous filing of the declaration and payment of tax is assumed.

As a rule, a foreign company must file tax returns monthly. You can switch to quarterly payments and reports if your turnover is less than 100,000 euros. If the turnover is below 30,000 euros, you can choose an annual reporting period.

Periodic VAT declarations must be submitted electronically to the authorized tax authority by the 12th day of the second month following the tax period.

Penalty

The penalty depends on the number of days of delay and the amount of tax. The penalty for late submission is 3 euros per day, but not more than 135 euros – if the delay is not more than 45 days.

Digital services

Web: Tax Agency


VAT Standard rate

24%

The reduced rate of 10% applies to the following services:

  • The book provided in electronic form
  • Electronic newspapers and magazines

Threshold

10 thousand euros.

Pieces of evidence:

You will need to collect and keep two of the following documents to confirm the customer’s place of residence and the correct rate of tax which has been assessed and paid:

  • billing address of your Buyer
  • the address of the Internet Protocol device used by your Buyer
  • the Bank details of your Buyer
  • the country code of the SIM card used by your Buyer
  • the location of fixed landline phone your Buyer, on which the service is provided

The list is not complete.

E-services list

  • Electronic services are services provided via the Internet or an electronic network, which by their nature are mostly automated, require little human intervention, and cannot be performed without information technology
  • Broadcasting services include services consisting of audio and audiovisual content, such as television or radio programs, which are provided to the public at the same time by a media service provider with editorial responsibility for a specific program schedule
  • Telecommunication service means a service for the purpose of transmitting and receiving signals, written or graphic messages, voice messages or information by wire, radio, optical, or other electromagnetic means, as well as providing or transmitting access to such transmission or reception capacity as access to global data transmission networks.

Registration procedure

If the Member State of identification is Finland, the registration notification is submitted to the electronic tax administration service MyTax.

It is not possible to register as a user of the Union scheme without a VAT payer number, therefore, only enterprises with a valid VAT payer registration can use the Union scheme.

Keeping records

10 years.

Filling VAT returns and VAT payment date

The VAT return and payment period is a calendar quarter. The company must use the electronic service to file a VAT declaration after each period, before the 20th day of the month following the end of the calendar quarter. The terms of VAT refund are not shifted if the planned deadline for submission falls on Saturday, Sunday, or a public holiday.