Navigation path

Measures List
First Prev Next Last Separator
Measure Name
Date when measure came into force
Increase of VAT rate 2013/01/01
Results 1 - 1 of 1.

Generic Tax Name VAT
Tax name in the national language Arvonlisävero/Mervärdesskatt
Tax name in English VAT
Member State FI-Finland
Tax in force since 1993/12/30
If abolished, date on which the tax ceases to apply
Business version date 2015/01/01
Version date 2015/06/25
This file was last updated on

Type of tax
Direct taxes Personal income tax
Corporate income tax
Other
Indirect taxes VAT
Excise duty (EU harmonised)
Alcoholic beverages
Energy products and electricity
Manufactured tobacco
Other
Social security contribution Employers
Employees
Other
 
Legal base

VAT Act of 30 December 1993 (1501/1993).
 
Who sets
The tax rate is set by



The tax base is set by



The reliefs are set by




Comments
 
Beneficiary





Comments

 
Geographical Scope
Territories excluded (article 6 2006/112/EC)

Ahvenanmaa / Åland

Comments

The European Union Act of Accession provides for the exemption of the Province of Åland from the regime for the harmonisation of indirect taxation. Consequently, the Province is considered to be a third country as regards the transactions between the Province and EU Member States, including the mainland Finland.
 
Taxpayers
Included taxable persons doing occasional transactions (article 12 2006/112/EC)


Comments
Special scheme for SMEs (article 281 2006/112/EC and following) None
Exemption
Graduated relief
Turnover threshold: 8,500.00  EUR/Natcur
Comments

The seller is not liable to tax if the annual turnover of the business does not exceed € 8,500 and he has not opted for taxation. When this threshold for VAT liability is exceeded, the enterprise receives a relief, which gradually decreases with the increase of turnover. The full amount of tax is levied when the annual turnover reaches 22,500 euro.
Common Flat-rate scheme for farmers (article 295 2006/112/EC and following) None
All categories
Some categories
Flat rate compensation percentage (general):
Flat rate compensation percentage for forestry:
Flat rate compensation percentage for fisheries:
Comments
There is a special scheme on the following





Comments
Special derogations to continue to tax (annex X)




Comments
Special derogations to continue to exempt (annex X)













Comments

The derogations are applied partly. E.g. the international transport of passengers is exempted.

Comments

 
 
Tax object and basis of assessment
The following items are regarded as supply of goods and hence taxed under VAT (article 14 - 15 2006/112/EC)




Comments
The following items are regarded as supply of goods and hence taxed under VAT (article 18 2006/112/EC)



Comments
By derogation to article 26 paragraph 1, the following item(s) are not regarded as supply of services and hence not subject to VAT (article 26(2) 2006/112/EC)


Comments
By application of article 27 of 2006/112/EC, the following item is treated as supply of services The supply by a taxable person of a service for the purposes of his business, where the VAT on such a service, were it applied by another taxable person, would not be wholly deductible
Comments

Comments

 
 
Deductions, Allowances, Credits, Exemptions
Exempted sectors*

Without the right to deduction of input tax:

  • hospital and medical care, social welfare services, educational services, financial and insurance services;
  • royalties due to performing artists or athletes, the sale of performances intended to be sold to the arrangers and the transfer of copyrights excluding copyright royalties collected by copyright organisations;
  • as a main rule, the sale and rental of real property;
  • other (lotteries, cemetery services, etc.).

With the right to refund of input tax:

  • printing of membership publications for corporate bodies for the public good;
  • the sale, lease, chartering, repair and maintenance of vessels (excluding those for mainly pleasure purposes);
  • the supply of gold to the Central Bank;
  • transactions associated with the international trade (the sale of goods transported outside the Community, the intra‑Community supply of goods; certain services related to the international trade; the sale, lease, chartering or work on aircraft used by enterprises operating for reward on international routes, etc.).

The importation and the intra‑Community acquisition of goods are in certain cases exempted, i.e., if the domestic sale is exempted. The intra‑Community acquisition made by enterprises which are not at all entitled to a deduction or by non‑taxable legal persons is exempted if they do not acquire goods (excluding goods subject to excise duties and new means of transport) for a value exceeding € 10,000 in the same calendar year or the preceding year. The removal from warehousing arrangements is not in certain cases taxable if the sale, importation or intra‑Community acquisition of the good has not been exempted under these arrangements or the good is transferred outside the Community.

Letters and postal parcels paid in cash are exempted from the general 24 % VAT-rate. This is done in accordance with the EU value added tax directive that exempts universal postal service products from value added tax within the European Union.  
Special Measures derogating from the normal VAT rules in accordance with Article 395 of Directive 2006/112/EC*

 

Comments

 
 
Rate(s) Structure
Standard VAT rate Rate: 24.00 %
Comments
Reduced rate 1

(article 98 of Directive - Annex III of Directive) 		Rate: 10.00 % on full or part of the following items

Article 98(2) 2006/112/EC

Foodstuffs (including beverages but excluding alcoholic beverages) for human and animal consumption; live animals, seeds, plants and ingredients normally intended for use in the preparation of foodstuffs; products normally used to supplement foodstuffs or as a substitute for foodstuffs
Supply of water
Pharmaceutical products of a kind normally used for health care, prevention of illness and as treatment for medical and veterinary purposes, including products used for contraception and sanitary protection
Medical equipment, aids and other appliances normally intended to alleviate or treat disability, for the exclusive personal use of the disabled, including the repair of such goods, and supply of children's car seats
Transport of passengers and their accompanying luggage
Supply, including on loan by libraries, of books on all physical means of support (including brochures, leaflets and similar printed matter, children's picture, drawing or colouring books, music printed or in manuscript form, maps and hydrographic or similar charts), newspapers and periodicals, other than material wholly or predominantly devoted to advertising
Admission to shows, theatres, circuses, fairs, amusement parks, concerts, museums, zoos, cinemas, exhibitions and similar cultural events and facilities
Reception of radio and television broadcasting services
Supply of services by writers, composers and performing artists, or of the royalties due to them
Provision, construction, renovation and alteration of housing, as part of a social policy
The renovation and repair of private dwellings, excluding materials which account for a significant part of the value of the service supplied
Window cleaning and cleaning in private households
Supply of goods and services of a kind normally intended for use in agricultural production but excluding capital goods such as machinery or buildings
Accommodation provided in hotels and similar establishments, including the provision of holiday accommodation and the letting of places on camping or caravan sites
Restaurant and catering services, it being possible to exclude the supply of (alcoholic and/or non-alcoholic) beverages
Admission to sporting events
Use of sporting facilities
Supply of goods and services by organisations recognised as being devoted to social wellbeing by Member States and engaged in welfare or social security work, in so far as those transactions are not exempt pursuant to Articles 132, 135 and 136
Supply of services by undertakers and cremation services, and the supply of goods related thereto
Provision of medical and dental care and thermal treatment in so far as those services are not exempt pursuant to points (b) to (e) of Article 132(1)
Supply of services provided in connection with street cleaning, refuse collection and waste treatment, other than the supply of such services by bodies referred to in Article 13
Minor repairs of bicycles
Minor repairs of shoes and leather goods
Minor repairs of clothing and household linen (including mending and alteration)
Domestic care services such as home help and care of the young, elderly, sick or disabled
Hairdressing

Article 102 2006/112/EC

Supply of natural gas
Supply of electricity
Supply of district heating

Article 103(1) 2006/112/EC

Pictures, collages and similar decorative plaques, paintings and drawings, executed entirely by hand by the artist, other than plans and drawings for architectural, engineering, industrial, commercial, topographical or similar purposes, hand-decorated manufactured articles, theatrical scenery, studio back cloths or the like of painted canvas (CN code 9701)
Original engravings, prints and lithographs, being impressions produced in the limited numbers directly in black and white or in colour of one or of several plates executed entirely by hand by the artist, irrespective of the process or of the material employed, but not including any mechanical or photomechanical process (CN code 9702 00 00)
Original sculptures and statuary, in any material, provided that they are executed entirely by the artists.
Sculpture casts the production of which is limited to eight copies and supervised by the artist or his successors in title (CN code 9703 00 00); on an exceptional basis, in cases determined by the Member States, the limit of eight copies may be exceeded for statuary casts produced before 1 January 1989
Tapestries (CN code 5805 00 00) and wall textiles (CN code 6304 00 00) made by hand from original designs provided by artists, provided that there are not more than eight copies of each
Individual pieces of ceramics executed entirely by the artist and signed by him
Enamels on copper, executed entirely by hand, limited to eight numbered copies bearing the signature of the artist or the studio, excluding articles of jewellery and goldsmith's and silversmith's wares
Photographs taken by the artist, printed by him or under his supervision, signed and numbered and limited to 30 copies, all sizes and mounts included
Postage or revenue stamps, postmarks, first-day covers, pre-stamped stationery and the like, used, or if unused not current and not intended to be current (CN code 9704 00 00)
Collections and collector's pieces of zoological, botanical, mineralogical, ethnographic or numismatic interest (CN code 9705 00 00)
Goods, other than works of art or collector's items, which are more than 100 years old (CN code 9706 00 00)
Comments

Comment to the point "reception of radio and television broadcasting services": Subsidies based on the licence fees from the radio and television fund to the Finnish Broadcasting company and similar subsidies to Ålands radio and TV.

A reduced rate of 10 % is applied, inter alia, to medicines, books, domestic passenger transport, admission to cultural services and entertainment events, sporting facilities, works of art in certain cases and subscribed newspapers and magazines.
Reduced rate 2

(article 98 of Directive - Annex III of Directive) 		Rate: 14.00 % on full or part of the following items

Article 98(2) 2006/112/EC

Foodstuffs (including beverages but excluding alcoholic beverages) for human and animal consumption; live animals, seeds, plants and ingredients normally intended for use in the preparation of foodstuffs; products normally used to supplement foodstuffs or as a substitute for foodstuffs
Supply of water
Pharmaceutical products of a kind normally used for health care, prevention of illness and as treatment for medical and veterinary purposes, including products used for contraception and sanitary protection
Medical equipment, aids and other appliances normally intended to alleviate or treat disability, for the exclusive personal use of the disabled, including the repair of such goods, and supply of children's car seats
Transport of passengers and their accompanying luggage
Supply, including on loan by libraries, of books on all physical means of support (including brochures, leaflets and similar printed matter, children's picture, drawing or colouring books, music printed or in manuscript form, maps and hydrographic or similar charts), newspapers and periodicals, other than material wholly or predominantly devoted to advertising
Admission to shows, theatres, circuses, fairs, amusement parks, concerts, museums, zoos, cinemas, exhibitions and similar cultural events and facilities
Reception of radio and television broadcasting services
Supply of services by writers, composers and performing artists, or of the royalties due to them
Provision, construction, renovation and alteration of housing, as part of a social policy
The renovation and repair of private dwellings, excluding materials which account for a significant part of the value of the service supplied
Window cleaning and cleaning in private households
Supply of goods and services of a kind normally intended for use in agricultural production but excluding capital goods such as machinery or buildings
Accommodation provided in hotels and similar establishments, including the provision of holiday accommodation and the letting of places on camping or caravan sites
Restaurant and catering services, it being possible to exclude the supply of (alcoholic and/or non-alcoholic) beverages
Admission to sporting events
Use of sporting facilities
Supply of goods and services by organisations recognised as being devoted to social wellbeing by Member States and engaged in welfare or social security work, in so far as those transactions are not exempt pursuant to Articles 132, 135 and 136
Supply of services by undertakers and cremation services, and the supply of goods related thereto
Provision of medical and dental care and thermal treatment in so far as those services are not exempt pursuant to points (b) to (e) of Article 132(1)
Supply of services provided in connection with street cleaning, refuse collection and waste treatment, other than the supply of such services by bodies referred to in Article 13
Minor repairs of bicycles
Minor repairs of shoes and leather goods
Minor repairs of clothing and household linen (including mending and alteration)
Domestic care services such as home help and care of the young, elderly, sick or disabled
Hairdressing

Article 102 2006/112/EC

Supply of natural gas
Supply of electricity
Supply of district heating

Article 103(1) 2006/112/EC

Pictures, collages and similar decorative plaques, paintings and drawings, executed entirely by hand by the artist, other than plans and drawings for architectural, engineering, industrial, commercial, topographical or similar purposes, hand-decorated manufactured articles, theatrical scenery, studio back cloths or the like of painted canvas (CN code 9701)
Original engravings, prints and lithographs, being impressions produced in the limited numbers directly in black and white or in colour of one or of several plates executed entirely by hand by the artist, irrespective of the process or of the material employed, but not including any mechanical or photomechanical process (CN code 9702 00 00)
Original sculptures and statuary, in any material, provided that they are executed entirely by the artists.
Sculpture casts the production of which is limited to eight copies and supervised by the artist or his successors in title (CN code 9703 00 00); on an exceptional basis, in cases determined by the Member States, the limit of eight copies may be exceeded for statuary casts produced before 1 January 1989
Tapestries (CN code 5805 00 00) and wall textiles (CN code 6304 00 00) made by hand from original designs provided by artists, provided that there are not more than eight copies of each
Individual pieces of ceramics executed entirely by the artist and signed by him
Enamels on copper, executed entirely by hand, limited to eight numbered copies bearing the signature of the artist or the studio, excluding articles of jewellery and goldsmith's and silversmith's wares
Photographs taken by the artist, printed by him or under his supervision, signed and numbered and limited to 30 copies, all sizes and mounts included
Postage or revenue stamps, postmarks, first-day covers, pre-stamped stationery and the like, used, or if unused not current and not intended to be current (CN code 9704 00 00)
Collections and collector's pieces of zoological, botanical, mineralogical, ethnographic or numismatic interest (CN code 9705 00 00)
Goods, other than works of art or collector's items, which are more than 100 years old (CN code 9706 00 00)
Comments

A reduced rate of 14 % is applied to foodstuffs (excluding live animals) and animal feeding stuffs and to restaurant services (with the exclusion of alcoholic beverages).
Special reduced VAT rate for specific regions (including articles 104 and 105 2006/112/EC) Rate:
Regions
Comments
Special provisions under article 110 2006/112/EC (existing provisions prior to 1991):No
Special provisions under articles 111 2006/112/EC:Yes

Subscribed newspapers and publications of associations of public utility.
Special provisions under articles 112 2006/112/EC:No
Special provisions under articles 113 2006/112/EC:No
Special provisions under articles 114 2006/112/EC:No
Special provisions under articles 115 2006/112/EC:No
Special provisions under articles 116 2006/112/EC:No
Special provisions under articles 117 2006/112/EC:No
Special provisions under articles 118 2006/112/EC:No
Special provisions under articles 119 2006/112/EC:No
Special provisions under articles 120 2006/112/EC:No
Special provisions under articles 121 2006/112/EC:No
Special provisions under articles 122 2006/112/EC:No

Comments

A 0 % rate is applied to printing services for certain membership publications.
 
Tax due date

The due date for VAT payment is the 12th day of the second month following the tax period. However, if the tax period is calendar year, the due date is 28th of February the year following the tax period.

 
Tax collector

The VAT is collected by the tax administration.
 
Special features

A reverse charge mechanism in value added taxation in construction sector is applicable. The mechanism aims to reduce the potential tax risk associated with VAT fraud. In the reverse charge mechanism the buyer of construction services, not the seller, is liable to tax. Mechanism is applied when construction services are supplied in Finland. Mechanism applies to sales of construction goods and construction services to businesses. It does not apply to sales to private individuals.

A reverse charge mechanism in value added taxation for emission permits is applied. In the mechanism the buyer of permits is liable to tax, not the seller. The reform aims to reduce risk of VAT fraud pre-emptively.
 
Economic function







Comments
 
Environmental taxes



Comments
 
Tax revenue
ESA95 code d211

Year
Annual tax revenue (millions)
Currency
Tax revenue as % of GDP
Tax revenue as % of total tax revenue
2012 17,640.00 EUR 8.83
2011 17,020.00 EUR 8.64
2010 15,256.00 EUR 8.15
2009 14,951.00 EUR 8.26
2008 15,511.00 EUR 8.01
2007 15,054.00 EUR 8.07
2006 14,418.00 EUR 8.35
2005 13,658.00 EUR 8.31
2004 12,949.00 EUR 8.17
2003 12,455.00 EUR 8.22
2002 11,680.00 EUR 7.88
2001 11,117.80 EUR 7.70
2000 10,869.00 EUR 7.98

Comments