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 explains the most important rules of Finnish VAT: rates, reverse charge, import VAT, OSS and IOSS, tax refund, SME exemption and the special status of the Åland Islands.
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.
As of January 1, 2026, the Finnish reduced rate has been reduced from 14% to 13.5%. At the same time, the 13.5% rate has been applied to public broadcasting services, which were previously subject to a 10% rate. The 10% rate remains primarily for newspapers and magazines.
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 settle VAT in Finland?
The obligation to settle VAT in Finland is determined by the entire transaction model, not just the customer's country. First, you must determine the place of taxation, and then check whether the seller, buyer, or special scheme is responsible for settling the tax.
Short decision model
Detailed requirements, forms and documents are discussed in a separate registration guide.
Check if you need a VAT FI number
Warehousing, importing, selling locally, or establishing a business may require registration. A separate guide outlines the requirements, forms Y1–Y3, Business ID, and required documents.
Fixed establishment in Finland – why is it so important?
A fixed establishment is a permanent place of business for VAT purposes, with appropriate personnel and technical resources. Its existence may change the application of reverse charge and the company's obligations in Finland.
Construction and installation projects
A construction, engineering, or installation project lasting longer than nine months may constitute a fixed establishment. If the project ultimately exceeds nine months, the fixed establishment is generally considered to have existed from the beginning of the work, not just from the tenth month.
A detailed assessment of the back-end, project merging and the impact on the VAT number is described in the registration guide.
Reverse charge in Finland – when does the reverse charge apply?
Reverse charge in Finland means that the buyer settles the VAT due, and the foreign seller issues an invoice without Finnish VAT, with the appropriate marking. This mechanism can be applied to many B2B services, selected deliveries by a foreign seller, and construction services, among others. Vero describes the rules for services in its VAT documentation for international services.
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.
What should be included on the invoice?
The invoice should include the parties' details and VAT numbers required for the transaction, a description of the service, the appropriate basis for settlement, and the designation "reverse charge." The documentation must reflect the actual transaction model.
Obligations after VAT registration in Finland
Entering a company into the Finnish VAT register triggers the obligation to submit periodic declarations, including for periods of inactivity. Depending on the type of transaction, summary information regarding EU sales may also appear.
Deadlines, MyTax, nil returns, corrections, payments and the VAT EU Recapitulative Statement are described in a separate declaration guide.
Already have a VAT FI number? Get your billing in order
Check deadlines, nil returns, MyTax support, payments, corrections and VAT EU Recapitulative Statement.
Import VAT in Finland – who settles the tax?
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
Non-EU companies use a separate, paper-based VAT refund procedure. Applications can be submitted independently or through a representative. Finland does not condition the right to a refund on the existence of a similar refund system in the company's country of residence.
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.
The OSS procedure is helpful when the sales model actually falls within its scope.
What is not reported in OSS?
OSS only covers transactions that fall under the relevant special scheme. It is not used to report imports, own goods movements, intra-Community acquisition of goods, or local sales from a Finnish warehouse. In such models, the obligation to register VAT in Finland must be separately verified.
VAT exemption for small businesses in Finland
A company based in Poland can, under certain conditions, benefit from the VAT exemption for small businesses in Finland. Before applying the exemption, it must register under the EU SME procedure in Poland.
Finnish rotation
Turnover in Finland must not exceed EUR 20,000 in either the current or previous calendar year.
Turnover in the EU
Total EU turnover must not exceed EUR 100,000 in either the current or previous calendar year.
Additional conditions
A company cannot benefit from the exemption if it has voluntarily registered for VAT in Finland. The system is not available to companies outside the EU. Details are provided in the detailed procedure for obtaining a VAT FI number.
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.
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
The sale of goods shipped from Poland to a Finnish VAT payer may constitute an IDT for the Polish seller and an INT settled in Finland by the Finnish buyer. Such a delivery alone should not require the seller to register in Finland if no additional local activities are involved.
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 rates, reverse charge, import, e-commerce, tax refund, SME and Åland.
What are the VAT rates in Finland in 2026?
The standard VAT rate in Finland is 25.5%. A 13.5% rate applies to items such as food, restaurants, passenger transport, accommodation, books, and pharmaceuticals. A 10% rate applies primarily to newspapers and magazines.
What has changed in Finnish VAT rates from 1 January 2026?
The reduced rate was reduced from 14% to 13.5%. Public service broadcasting services were moved from a 10% rate to 13.5%, with the 10% rate remaining primarily for newspapers and magazines.
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.
How does a foreign company settle import VAT in Finland?
An importer registered for VAT in Finland generally settles import VAT in the declaration submitted to Vero. If the importer is not registered for VAT, the tax is generally settled based on a Tulli customs decision.
When can B2C sales be settled via OSS or IOSS?
OSS may cover selected intra-EU distance sales of goods and certain B2C services, while IOSS covers sales of low-value imported shipments. These procedures only cover transactions within their scope.
Can a foreign company recover VAT from Finland?
Yes. An EU company not registered in Finland uses the refund procedure through the portal in its home country, a non-EU company uses a separate paper procedure, and a taxpayer registered in Finland settles the input VAT in the return.
What is the SME exemption for small businesses?
An EU-based company can benefit from the exemption upon registration for the SME procedure in the country of establishment if the Finnish turnover does not exceed EUR 20,000 and the total EU turnover does not exceed EUR 100,000 – both in the current and previous year.
Are the Åland Islands subject to normal VAT rules?
Not entirely. The Åland Islands are part of Finland, but remain outside the EU's VAT and excise tax jurisdictions. Therefore, import, export, and customs formalities may arise when trading goods.
When might a company need a Finnish VAT number?
A VAT FI number may be needed if a company must self-report Finnish VAT. Detailed requirements are described in the registration guide.
