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.
Take a look at the latest VAT rate changes in Finland.
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.
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Foodstuff14%
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Water supplies25.5%
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Pharmaceutical products14%
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Medical equipment for disabled persons25.5%
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Children´s car seats25.5%
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Passenger transport14%
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Books14%
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Books on other physical means of support14%
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Newspapers10%
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Periodicals10%
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Admission to cultural services (theatre, etc)14%
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Admission to amusement parks14%
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Pay TV / cable10% (public broadcasting) and 25.5%
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TV licenses25.5%
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Writers / composers14%
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Hotel Accommodation14%
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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%