VAT in Finland 2026
VAT in Finland is important for companies that sell goods or services on the Finnish market, import goods to Finland, use a Finnish warehouse or carry out projects in Finland.
This guide helps you determine when you need to register for VAT abroad, when you need to file VAT returns abroad and when B2C sales can be accounted for via OSS VAT returns.
The official rules for foreign entities are described by Vero in the material VAT for foreign companies in Finland.
VAT rates in Finland 2026 – 25.5%, 13.5% and 10%
In 2026, the standard VAT rate in Finland is 25.5%. Before choosing a rate, however, you must determine whether the place of taxation is Finland and whether the transaction is subject to reverse charge, exemption, or a special scheme.
The current rates are described by Vero in the VAT Rates, and rate changes are described in a separate announcement Changes to VAT Rates.
When does a foreign company have to settle VAT in Finland?
A foreign company must account for VAT in Finland when it performs activities subject to Finnish VAT and there is no mechanism in place to transfer the settlement to the buyer. Simply stating "sales to Finland" is not sufficient; B2B, B2C, warehousing, import, local services, and fixed establishment must be assessed separately.
How to check VAT liability in Finland?
VAT registration in Finland 2026 – when is it needed?
VAT registration in Finland is required when a foreign company performs activities in Finland that require its own VAT registration. Vero describes the official rules in its article VAT registration for foreign companies in Finland.
Finnish magazine
Storing goods in Finland and selling them locally usually requires VAT registration analysis.
Import and sale
When a company imports goods into Finland and sells them on, it may become subject to VAT obligations, declarations and local invoicing.
Local services
Real estate services, construction work and on-site projects require a separate assessment of the place of taxation.
No reverse charge
If the buyer fails to settle the tax, the obligation may remain with the foreign seller.
Fixed establishment
Permanent human and technical support in Finland may change the way VAT is settled.
B2C sales outside of OSS
OSS does not replace local registration for warehousing, import and sales from Finnish stock.
Want to check VAT FI registration step by step?
If you use a warehouse, import goods, or sell locally in Finland, check out our detailed guide or go straight to registration support.
VAT returns in Finland 2026
VAT returns in Finland are filed by companies registered in the Finnish VAT register. This obligation usually also covers periods without sales if the company remains registered.
Base term
The standard declaration and payment deadline is the 12th day of the second month following the end of the settlement period. Vero describes the rules in its article " How to complete a VAT declaration / submission and payment deadlines."
Standard period
The standard billing period is one month. In certain cases, quarterly or annual billing periods are possible.
EU Information
A separate obligation may be the EU VAT Statement, i.e. the Finnish summary information.
What can appear in the declaration?
Domestic sales, purchases with the right to deduct, intra-Community acquisition of goods, import of services, import of goods, transactions settled by the buyer, sales to other EU countries and corrections to earlier periods.
Do you have an active VAT FI number? Go to the declaration.
If the company is already registered in the VAT register, deadlines, zero declarations, corrections, VAT EU Recapitulative Statement and settlement data in MyTax become crucial.
Fixed establishment in Finland – why is it so important?
A fixed establishment is a permanent place of business for VAT purposes. It is not the same as a branch, subsidiary, or permanent establishment for income tax purposes. For VAT purposes, what matters most is the permanent human and technical resources that allow the company to participate in the sale or receipt of services.
When does fixed establishment risk increase?
- longer construction or installation projects,
- local operational facilities in Finland,
- personnel operating permanently in Finland,
- logistic structures enabling sales from Finland,
- repetitive projects carried out in Finland.
Warning signal for projects
Source materials indicate that construction, engineering, and installation projects can constitute a fixed establishment if they last longer than nine months. This applies even if invoices are issued from Poland.
Reverse charge in Finland – when does the reverse charge apply?
Reverse charge in Finland means that the buyer, not the foreign seller, settles VAT. This mechanism can reduce the need for local VAT registration, but requires verification of the terms and conditions. For B2B services, it's worth comparing the rules with the Vero VAT material for international service provision.
Where can reverse charge help?
The mechanism may be relevant for many B2B services, sales by non-residents, selected construction services, scrap metal transactions, gold transactions and emissions allowances.
In the construction industry, it is worth checking the official rules of Reverse charge VAT in the construction sector.
When might reverse charge not be enough?
- the buyer is the consumer,
- the seller has a fixed establishment in Finland,
- the transaction concerns local sales from a Finnish warehouse,
- the model includes import and further sale in Finland,
- invoice or documentation does not meet the requirements.
VAT import in Finland and deferred VAT import
Import VAT in Finland applies to the import of goods from outside the European Union. Settlement depends on the importer's status: a VAT-registered taxpayer typically settles the import VAT on their Vero VAT return, while an unregistered entity may pay VAT upon clearance through Tulli.
What to check before importing?
- who is the importer,
- whether the importer has a Finnish VAT number,
- whether an EORI number is needed,
- whether import VAT will be settled by Vero or Tulli,
- whether the company is entitled to deduct VAT,
- whether the goods stay in Finland or continue to the EU.
Sources for import
When importing, check the official Tulli Import VAT, the Vero procedure VAT Taxation of Imported Goods and EORI Number Registration.
VAT refund from Finland for foreign companies
A foreign company can recover VAT from Finland, but the correct path depends on the taxpayer's status. The refund process differs for an EU company not registered in Finland, a non-EU company, and an entity registered for Finnish VAT.
A company from Poland
An EU company submits its application through its home country's tax portal. Vero describes this process as VAT Refund for EU Companies.
VAT payer in Finland
If a company is registered for VAT in Finland, tax recovery is usually done through a VAT return.
Non-EU company
The third country entity should check the refund procedure, VAT representative and reciprocity conditions separately.
VAT e-commerce in Finland – OSS, IOSS and B2C sales
B2C sales to Finland need to be analyzed differently than B2B sales. Consumers won't be able to account for VAT through reverse charge, so the seller must determine whether they should charge Finnish VAT, use OSS, IOSS, or register locally.
When can OSS help?
OSS can simplify settlements for selected intra-EU distance sales of goods and B2C services. If a company sells goods to consumers in Finland from another EU country and meets the procedure's conditions, it can settle Finnish VAT through OSS in the country of identification.
OSS VAT returns are helpful when the sales model actually falls within this procedure.
When is OSS not enough?
- you store goods in Finland,
- you sell locally from a Finnish warehouse,
- you import goods to Finland as a VAT payer,
- you perform other activities that require a Finnish VAT number.
VAT exemption for small businesses in Finland
Since 2025, the European Union has been implementing an expanded scheme for small businesses, the EU VAT scheme for small businesses. A company from another EU country can, under certain conditions, benefit from VAT exemption in Finland.
Finnish threshold
In Finland, the threshold for small businesses is €20,000 in annual turnover.
EU limit
The total annual turnover in the EU cannot, in principle, exceed EUR 100,000 under the EU scheme.
Not for third countries
This solution is not available to companies outside the EU. Third-country entities should review their VAT registration and VAT representative.
Åland Islands and VAT in Finland
The Åland Islands are part of Finland, but have a special status for VAT and excise tax purposes. They are not part of the EU VAT and excise tax territory, so shipping goods to or from Åland may have separate obligations regarding tax borders, imports, exports, and customs documentation.
What to check when transacting with the Alands?
For a foreign company, it's crucial not to automatically treat sales to the Åland Islands as identical to sales to the rest of Finland. It's important to check the delivery point, transport documents, customs clearance, import VAT, and invoicing methods.
Penalties and interest for VAT errors in Finland
VAT errors in Finland can lead to penalties, interest, tax assessments, and documentation issues. Risks include late declarations, missing zero declarations, late VAT payments, incorrect imports, and incorrect reverse charges.
The first 45 days
A late VAT return may incur a penalty of €3 for each day of delay for the first 45 days, up to a maximum of €135.
After 45 days
After 45 days, the penalty may be €135 plus 2% of the tax declared late, with a limit of €15,000 per tax.
Interest in 2026.
In 2026, interest for late payment of self-assessed taxes, including VAT, is 9.5% per annum.
VAT in Finland 2026 – practical examples
These examples show why VAT in Finland must be analyzed transactionally and not only through the prism of the customer's country.
Sales from Poland to a VAT FI taxpayer
Possible IDT in Poland and INT in Finland, without local registration, if there is no warehouse or fixed establishment.
Sales from a warehouse in Finland
Possible movement of own goods, ITC in Finland and local sales requiring registration.
Construction service in Finland
Reverse charge is possible in construction, but you need to check the status of the buyer, the type of service and the length of the project.
Import by a company outside the EU
The key factors are the importer, EORI, VAT number, VAT representative, VAT import and subsequent sale.
VAT refund on Finnish invoices
If the company performs activities requiring registration, VAT recovery should be analyzed through declarations.
Not sure if Finland requires VAT registration?
We'll discuss sales models, warehousing, imports, OSS, reverse charge, and declaration risks. After our conversation, you'll know whether simplification is enough or whether you need a VAT FI number and periodic declarations.
VAT in Finland 2026 – key conclusions
For foreign companies, VAT in Finland must be analyzed transactionally. Knowing that the standard rate is 25.5% isn't enough. It's crucial to consider where the goods are located, who the buyer is, whether the sale is B2B or B2C, whether the company has a warehouse in Finland, who is the importer, and whether reverse charge is possible.
First the model
Start with a map of the flow of goods, services and invoices, and only then choose a rate or procedure.
Be careful with warehouse and import
Storing goods in Finland and importing them for resale are among the most common risk areas.
Post-registration process
The VAT FI number stands for declarations, calendar, documentation, corrections and responsibility for deadlines.
FAQ: VAT in Finland 2026
Frequently asked questions about Finnish VAT, registration, declarations, OSS, import and penalties.
How much is VAT in Finland in 2026?
The standard VAT rate in Finland in 2026 is 25.5%. In addition, reduced rates of 13.5% and 10% apply.
What are the VAT rates in Finland?
In Finland, the standard rate is 25.5%, the reduced rate is 13.5%, and the reduced rate is 10%. The 13.5% rate covers, among other things, food, restaurants, catering, passenger transport, accommodation, books, and pharmaceuticals. The 10% rate applies primarily to newspapers and magazines.
Does a Polish company have to register for VAT in Finland?
Not always. VAT registration in Finland may be necessary if a Polish company sells goods from a Finnish warehouse, imports goods to Finland and sells them locally, has a fixed establishment, or carries out transactions where reverse charge does not apply.
When is VAT registration in Finland not needed?
Registration may not be necessary for many standard B2B services for a Finnish VAT payer if the buyer settles the tax via reverse charge and the Polish company does not have a fixed establishment in Finland or other activities requiring registration.
Does a warehouse in Finland require VAT registration?
A warehouse in Finland often requires VAT registration. If a company stores goods in Finland and sells them to local customers, it may be required to register and submit VAT returns in Finland.
What is a fixed establishment in Finland?
A fixed establishment is a permanent place of business for VAT purposes. It refers to the presence of personnel and technical resources in Finland that allow the company to participate in the sale or receipt of services.
How does reverse charge work in Finland?
Reverse charge means that the buyer, not the foreign seller, settles the VAT. This mechanism can work for many B2B transactions, but requires verification of the buyer's status, place of supply, and the absence of a fixed establishment on the seller's side.
Does OSS replace VAT registration in Finland?
OSS can replace local registration in selected B2C sales models, but does not replace VAT registration for warehousing in Finland, local sales from a Finnish warehouse, importing as a Finnish VAT payer, or other local activities.
Who settles import VAT in Finland?
If the importer is VAT registered in Finland, import VAT is generally accounted for in the VAT return submitted to Vero. If the importer is not VAT registered, VAT on import may be charged by Tulli.
Does deferred VAT import work in Finland?
In practice, a company registered for VAT in Finland can report import VAT on its VAT return. This improves liquidity if the company is entitled to a deduction. This is not a tax exemption, but rather a method of settling import VAT.
Do I need to submit a zero VAT return in Finland?
Yes, if a company is registered for VAT in Finland and has no transactions in a given period, it must still submit a declaration for the relevant period. The lack of sales does not automatically mean there is no obligation to declare.
What is the deadline for VAT returns in Finland?
The standard deadline for VAT returns and VAT payments is the 12th day of the second month following the end of the accounting period. If the deadline falls on a weekend or public holiday, it is extended to the next business day.
Can a foreign company recover VAT from Finland?
Yes, but the procedure depends on the company's status. An EU company not registered in Finland uses the refund procedure through its home country's portal. A company registered for VAT in Finland settles the input VAT on its return.
Are the Åland Islands covered by the normal VAT rules in Finland?
Not entirely. The Åland Islands are part of Finland, but have a special status for VAT and excise tax purposes. Transactions with Åland require verification of imports, exports, customs documents, and the tax border.
What are the penalties for late VAT declaration in Finland?
The penalty for filing a late return is €3 per day of delay for the first 45 days, up to a maximum of €135. After 45 days, the penalty can be €135 plus 2% of the tax declared late, up to a maximum of €15,000 per tax.
How much is the interest for late payment of VAT in 2026?
In 2026, interest for late payment of self-assessed taxes, including VAT, is 9.5% per annum.
