Since September 1st, 2024, the general VAT rate in Finland has increased from 24% to 25.5%. This adjustment is part of a broader set of laws put in place by the Finnish government, which was announced on May 30th, 2024. The change is expected to generate an additional revenue of approximately one billion euros for the Finnish economy. This increase affects all products and services previously subject to the 24% VAT rate.
Key details
New VAT rate
The general VAT rate has risen to 25.5%, impacting a wide range of goods and services.
Additional changes
The VAT on sweets is set to rise from 14% to 25.5% in early 2025, alongside a general rate increase.
Timeline
The proposed VAT rate increase has been implemented since September 1st, 2024.
What does this mean for businesses?
Businesses operating in Finland must be aware and prepared for these changes by reviewing their pricing strategies, updating financial models, and ensuring compliance with the new September VAT rates. Those in the confectionery sector should also be aware of the upcoming VAT changes in 2025.
If you have any questions or need further information on how these changes might affect your business, reach out to us today so we can assist you.
