Finland: VAT Rate Changes from September 2024
On the 3 July 2024, the Finnish Tax Administration published instructions for VAT reporting in relation to the VAT rate change effective from 1 September 2024.
The standard VAT rate will increase from the current 24% to 25.5% to strengthen public finances.
The Finnish Tax Authority published detailed guidance including specification on the VAT return for periods starting 1 Sept 2024, specifying how the VAT rate must be applied during the transitional period and how to report depending on the frequency of reporting (monthly/ quarterly/ yearly) and on the way of filing (online, via API or via post).
Adding to this, the Ministry of Finance has opened a public consultation on a draft bill that proposes moving certain commodities from the current 10% reduced VAT rate to a 14% reduced VAT rate, excluding newspapers and magazines.
The new VAT rate will apply to:
- Accommodation operations;
- Passenger traffic;
- Medicines;
- Guest harbour operations; and
- Cultural and sports activities:
- Including books, sports and exercise services, access to cultural events, use of sports facilities, performances by artists or athletes, imported artworks sold by authors or occasional sellers, and copyright-related compensation received by organizations representing copyright holders
Individuals can make comments through 19 August 2024.
If the draft bill is passed, the suggested date of entry into force is 1 January 2025.
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