VAT in Finland
Value Added Tax in Finland is also known as "Arvonlisävero” (ALV), in the local language.
What are the VAT rates in Finland?
The VAT rates applicable in Finland are:
- Standard Rate: 25.5%.
- Reduced Rates: 10 y 14%
The reduced VAT rate will only be applied to specific products covered by the VAT Directive.
The standard VAT rate in Finland was raised from 24% to 25.5% in September 2024.
VAT rates in Finland by product or service
The standard VAT rate is 25.5%. Also, the standard VAT rate will generally apply to all goods and services for which no exemption or reduced VAT rate is provided.
The first reduced VAT rate is 14%. This reduced rate will be applied to most food products, including catering and restaurant services, water, and pet food.
In addition, legally, there is a reduced VAT rate of 10%. This other reduced VAT rate will generally apply to certain pharmaceutical products, books (both printed and digital), newspapers and periodicals, passenger transport, hotel accommodation, cinema, and sports services.
Supplies and services at 0% are general supplies, such as exports.
Finally, some supplies are exempt from VAT, such as, for example, health and social care, education, financial and insurance transactions, and real estate exemptions.
Furthermore, if you are in doubt about the VAT rate applicable to a particular product or service in Finland, we recommend that you contact us.
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Foodstuff14%
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Water supplies25.5%
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Pharmaceutical products10%
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Medical equipment for disabled persons25.5%
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Children´s car seats25.5%
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Passenger transport10%
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Books10%
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Books on other physical means of support10%
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Newspapers10%
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Periodicals10%
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Admission to cultural services (theatre, etc)10%
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Admission to amusement parks10%
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Pay TV / cable10% and 25.5%
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TV licenses25.5%
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Writers / composers10%
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Hotel Accommodation10%
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Restaurant and catering services14%
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Restaurants14%
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Medical and dental careExempt and 25.5%
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Repair of shoes and leather goods25.5%
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Repair of clothing and household linen25.5%
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Hairdressing25.5%