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 and 14%

The reduced VAT rate will only be applied to specific products covered by the VAT Directive.

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, pet food, pharmaceutical products, books (both printed and digital), passenger transport, hotel accommodation, cinema, and sports services.

In addition, there is a reduced VAT rate of 10% that applies only to newspapers and magazines (print and electronic publications), and to public broadcasting. The scope of 10% VAT rate was drastically reduced by 1 January 2025. 

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.

• Foodstuff
   14%
• Water supplies
  25.5%
• Pharmaceutical products
  14%
• Medical equipment for disabled persons
  25.5%
• Children´s car seats
  25.5%
• Passenger transport
  14%
• Books
  14%
• Books on other physical means of support
  14%
• Newspapers
  10%
• Periodicals
  10%
• Admission to cultural services (theatre, etc)
  14%
• Admission to amusement parks
  14%
• Pay TV / cable
  10% (public broadcasting) and 25.5%
• TV licenses
  25.5%
• Writers / composers
  14%
• Hotel Accommodation
  14%
• Restaurant and catering services
  14%
• Restaurants
  14%
• Medical and dental care
  Exempt and 25.5%
• Repair of shoes and leather goods
  25.5%
• Repair of clothing and household linen
  25.5%
• Hairdressing
  25.5%