VAT Finland Guide

Whether your company is based in the EU or elsewhere, if you sell to customers in Finland you may be required to register for VAT. This guide provides a concise overview of the Finland VAT system, helping businesses navigate the regulations and understand how these may impact their operations.

What is the VAT rate in Finland?

VAT (Value Added Tax) is known as Arvonlisävero (ALV) in Finland. The standard Finland VAT rate is 25.5%, whereas the two reduced rates are 14% and 10%. Finland also has a zero VAT rate for limited goods and services.

Registering for VAT in Finland

Any business based in Finland with an annual turnover exceeding €15,000 must register for VAT. For non-resident businesses, there is no minimum threshold. 

Those engaged in intra-community distance selling must register for VAT in Finland once their sales exceed €10,000. This threshold is consistent with the general VAT rules across the European Union for cross-border sales. VAT registration is also mandatory if a company stores goods in Finland or participates in an FBA (Fulfilled-by-Amazon) program involving Finland.

Businesses can register for a Finnish VAT through the Finnish Tax Administration (Vero Skatt) website. Once the application has been submitted, it usually takes no more than four weeks to receive your Finland VAT number.

Fiscal representative in Finland

Non-EU companies operating in Finland are required to appoint a fiscal representative. This representative will be jointly responsible for any Finnish VAT that is due.

Finnish VAT return filing and penalties

The submission frequency of VAT returns in Finland will depend on the company's annual turnover:

• Submit a monthly VAT return if the annual turnover exceeds €100,000.
• Submit a quarterly VAT return if annual turnover is between €30,000 and €100,000.
• Submit an annual VAT return if the annual turnover is less than €30,000.

Non-resident companies are required to file monthly returns. All VAT returns must be submitted electronically via the OmaVero portal.

The due dates for Finnish VAT returns are as follows:

• Monthly VAT returns must be submitted by the 12th of the second month following the reporting period.
• Quarterly VAT returns must be filed by the 12th of the second month following the end of the quarter.
• Annual VAT returns should be submitted by the end of February following the tax year.

Failing to file a VAT return on time may result in a fine totalling up to €15,000. Late payment of VAT in Finland attracts interest charges of 7%. For misdeclarations, fines of 10% to 50% may be imposed.

Finnish Intrastat declarations

Companies moving goods across Finnish borders may need to submit Intrastat declarations. Intrastat filings should be completed by the 10th day of the month following the supply of goods. The threshold for Intrastat declarations in Finland is €800,000 for arrivals and €800,000 for dispatches.

Reverse charge in Finland

In Finland, the reverse charge mechanism shifts the responsibility for reporting a VAT transaction from the seller to the buyer of a good or service. This is primarily used when dealing with cross-border B2B transactions within the EU. Instead of the seller charging VAT and remitting it to the Finnish tax authorities, the buyer accounts for the VAT on their VAT return.