Who may be required to register as a VAT payer?
Obtaining an EU VAT certificate and VAT registration applies to businesses that:
- make purchases and sales of goods in Finland
- make purchases and sales of goods to other European Union member states (so-called intra-community transactions: intra-community acquisition of goods and intra-community delivery of goods)
- import goods for the Finnish market
- conduct remote sales to Finland above the limit of EUR 10,000 on an annual basis
- hold ticketed live events, exhibitions, conferences, etc. in Finland
- are not VAT payers, but acquire services covered by the reverse charge procedure
- store goods in Finland for resale
- make their own delivery of goods.
Failure to register for VAT by the deadline may result in a late penalty and interest charged by the tax authority from the date of mandatory registration.
In order to register for VAT, you must submit a dedicated registration form to the tax office and:
- confirmation of VAT registration in the country of origin
- extract from the national commercial register
- contract or articles of association
- proof of activity in the territory of Finland
It usually takes about a month to obtain a VAT number. When registering entrepreneurs from outside the EU, it is mandatory to appoint a tax representative.
As a general rule, tax returns should be filed on a monthly basis. You can switch to quarterly payments and reports if your turnover for the previous calendar year is less than €100,000. If the turnover is less than €30,000, you can choose an annual reporting period.
VAT returns must be submitted electronically by the 12th day of the second month following the tax period. For annual returns, the deadline is the last day of February of the following year. The deadline for filing returns coincides with the deadline for paying tax.
Foreign entities operating in Finland must also comply with local regulations concerning, among other things: invoicing and the archiving of books and records.
Currently, the VAT rates in Finland are:
- 24% – standard rate,
- 14% – reduced rate, including foodstuffs, restaurant and catering services (excluding alcoholic beverages), cut flowers and plants for food production
- 10% – reduced rate, among others, domestic transportation, pharmaceutical products, tickets for cultural, sports and entertainment events, books, subscribed newspapers and magazines, accommodation services
- 0% – intra-community and international transport, selected works of art, collector's items and antiques
Services we provide in this country:
- VAT Registration
- VAT Settlements
- VAT Consulting