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VAT in Finland

VAT Guide for EU countries within Europe

VAT in Finland

Whether you’re a European or non-European company, establishing certain activities in Finland may mean you need to register for VAT. You can use a fiscal representative or tax advisor to draw up your VAT, Intrastat and ESL returns with total peace of mind in Finland.

If you deal with companies in Finland, you may be able to claim a Finnish VAT refund.

Here you can find the specifics of VAT regulations in Finland, which work alongside the harmonised framework of the EU as explained in our guide to intra-Community VAT obligations.

Basic information

EU membership 1995
ISO code FI
VAT introduced in Finland 1994
VAT name in Finland Arvonlisävero
VAT ID format in Finland FI99999999
Territories with special status in Finland Åland Islands

VAT rates in Finland

Standard VAT rate 24 %
Reduced VAT rate (1) 14 %
Reduced VAT rate (2) 10 %
Super reduced VAT rate n/a
VAT parking rate n/a
Zero VAT rate yes

Thresholds triggering VAT reporting obligations in Finland

Intrastat threshold at introduction 600 000 EUR
Intrastat threshold on dispatch 600 000 EUR
Distance selling threshold As of 1st July 2021, the threshold is EUR 10,000 for all intra-Community distance sales.

Reporting frequency in Finland

Intrastat declaration monthly depending on threshold
EC Sales List (ESL) declaration monthly
VAT returns monthly, quarterly , annually
Reporting currency EUR

VAT-related penalties in Finland

Failure to file a VAT return Penalty of EUR 135 if submitted within 45 days of the deadline. Additional penalty of 2% of the amount of VAT due for the period in question up to a limit of EUR 15,000 per return.
Late payment of VAT Penalty of 7.5% of the amount of VAT due.
Failure to report ESL/DEB Penalty of EUR 100 if filed within 45 days after the deadline, and EUR 200 if filed more than 45 days after the deadline.

Useful links on VAT in Finland

Tax Authorities in Finland Tax authorities
Ministry of Finance in Finland Ministry of Finance
Check a VAT number in Finland Check a VAT number
EU VAT Guide EU VAT Guide
Finland has been a member of the European Union and the Eurozone since 1995.

Finland’s key economic contributor is industry, mainly wood, metals, engineering, telecommunications and electronics. The telecommunications and electronics industries are now the largest exporters.

The Finnish Value Added Tax legislation is governed by the Value Added Tax Act No. 1501 of 30th December 1993, as well as by the European VAT Directives.

All foreign economic operators making Intra-Community purchases and supplies in Finland are required to submit VAT returns. Foreign traders making so-called zero-rated sales in Finland must register as taxable persons in Finland in order to receive a VAT refund on purchases made in Finland subject to VAT.
Carrying out these activities mean using a fiscal representative is essential in Finand.

The current VAT rates in Finland are as follows:

  • Standard VAT rate: 24 %
  • Reduced VAT rate (1): 14 %
  • Reduced VAT rate (2): 10 %
  • Super reduced VAT rate: n/a
  • VAT parking rate: n/a
  • Zero VAT rate yes

Certain transactions in Europe may require registering for VAT and filingVAT returns in Finland:

To check if your activities involve VAT obligations in Finland, use our VAT simulator or contact us.

When do e-traders need to register for VAT in Finland?

In Finland just like in other European Union countries, e-traders must register for VAT:

  • when the overall threshold of EUR 10,000 for Intra-Community distance selling is exceeded and they have not opted to pay the VAT in Finland via the One Stop Shop,
  • or when they hold a stock of goods in Finland and must report the stock supply transactions.

What are the VAT obligations for e-traders in Finland ?

In addition to VAT registration, e-traders must:

  • Apply the defined VAT ratesin Finland: standard rate (24 %), reduced rates 1 and 2 (14 % and 10 %).
  • Declare stock transfers between marketplaces‘ storage platforms, as well as the supply translactions for these stocks.
  • File periodic returns (VAT returns, intrastat, ESL), to ensure their VAT compliance in Finland.

> Learn more about the VAT & e-commerce regulations and the VAT regime for logistics platforms in Europe.

Why identify yourself to VAT in Finland?

You may need a VAT number in Finland to fulfil your tax obligations in this country. Indeed, certain activities such as sales, purchases and subcontracting operations may require VAT identification. To check if your activities require VAT identification in Finland, use our VAT simulator or contact us.

VAT Finnish is named Arvonlisäveroand the VAT numbers in Finland have the following structure: FI99999999.

How do I get a VAT number in Finland?

The administrations in charge of in Finland VAT are the following: Tax authorities, Ministry of Finance.

Registering for VATis a relatively simple formality compared to setting up a company, but in addition to obtaining a VAT number in Finlandyou’ll need to file periodic VAT returns to ensure your VAT compliance. Which is why we recommend foreign companies use a fiscal representative or tax advisor.

Companies with a VAT number in Finland must complete and submit VAT returns in Finland detailing all taxable income (sales) and expenses (costs), with the following periodicity: monthly, quarterly , annually.

Failure to comply with the deadlines imposed by the Finnish authorities for the deposit and payment of VAT will result in the payment of penalties . For this reason, it is recommended that foreign companies use the services of an agent or a tax representative.

These penalties are defined as follows in Finland:

  • Penalties for failure to file a VAT return in Finland: Penalty of EUR 135 if submitted within 45 days of the deadline. Additional penalty of 2% of the amount of VAT due for the period in question up to a limit of EUR 15,000 per return.
  • Penalties for late payment of VAT in Finland: Penalty of 7.5% of the amount of VAT due.

In addition to VAT returns, companies may be required to provide the Finnish authorities with Intrastat & EC Sales List returns:

  • Intrastat returns enable the Finnish authorities to compile foreign trade statistics.
    Companies must file these Intrastat returns as soon their turnover reaches the threshold.
    Intrastat threshold at introductio n in Finland (600 000 EUR HT/an)
    – Intrastat threshold on dispatch in Finland (600 000 EUR HT/an).
    Failure to comply with the deadlines imposed by the Finnish authorities for the filing of these Intrastat returns wil incur a penalty payment for the company.
  • The sales summary returns (EC Sales List or ESL) or purchases (EC Purchases List or EPL) in Finland are for tax purposes.
    Failure to comply with the deadlines imposed by the Finnish authorities for the filing of these ESL returns wil incur a penalty payment for the company.

In principle, a non-resident company in Finland can recover all or part of the VAT incurred on its expenses.

There are three different scenarios:

  • The company, whether it is established within the European Union or not, is already registered for VAT in Finland, or is obliged to register for VAT in Finland. In this case, it must apply for a VAT refund via the periodic VAT return filed in Finland, according to a periodicity:monthly, quarterly , annually.
  • The company is established within the European Union, is not registered for VAT in Finland and is not required to do so. In this case, a VAT refund should be requested via the tax authorities’ electronic portal in the country where the company is established.
  • The company is not established within the European Union and is not required to register for VAT in Finland. In this case, they must use the services of a fiscal representative to carry out what is required by the Finnish authorities on their behalf.
    > Learn more about our VAT recovery services.


*This information is subject to change without notice.

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