Finland joined the European Union in 1995 and the Eurozone in 1999, taking on the currency of the Euro.
VAT rates in Finland
The standard rate of VAT is 24%, and reduced rates of 10% and 14% are available.
VAT registration in Finland
The VAT registration limit for established businesses is €8,500, although it is zero for non-established businesses.
Distance sales have a limit of €35,000 for VAT registration.
The format for a VAT identification number is: FI 1234567. Every company must hold a number like this in order for accurate taxation.
VAT returns should be filed monthly and annual returns are not required.
Are there any Intrastat thresholds in Finland?
Yes. There is a limit of €550,000 for both dispatches and €275,000 arrivals.
VAT recovery in Finland?
- Is VAT recovery permitted for non-established non-EU businesses?
Yes, Finland allows VAT recovery for all non-EU countries.
- Are there any non-VAT recoverable expenses?
Yes, recovery of input tax is restricted on certain items, i.e. hotel accommodation and business entertainment.
Reverse charge applies to the majority of cross border services. This also applies to Finnish VAT registered customers supplied by a non-established business, and certain domestic transactions, such as construction services.
Requirements and regulations in Finland
Any company established in a non-EU member country must appoint a tax representative to voluntarily register for VAT in Finland. A tax representative is not required is tax registration is mandatory.
Use and enjoyment rules apply.
The period of VAT recovery by tax authorities has a timescale of 3 years in order to prevent fraud. This period is the same for VAT deductions and refunds.
Please contact us for further information about paying taxes in Finland, and a member of our team will be happy to help you.