Tax rates in 2026
In 2026 Finland has three value added tax rates. The general rate is 25,5 %, in force since 1.9.2024. The reduced rate fell from 14 % to 13,5 % from 1.1.2026. The other reduced rate is 10 %. In addition, some sales are zero-rated or entirely outside value added tax. For zero-rated sales, such as exports of goods outside the EU and intra-Community sales to a business registered in another EU country, no tax is added to the price, but input tax on purchases can still be deducted. For tax-exempt activity, such as healthcare services, input tax on purchases cannot be deducted.
The 14 % rate is therefore no longer used for sales in 2026. It was valid until 31.12.2025, so old price lists and cash register settings should be checked.
What falls under each tax rate?
The general 25.5% rate applies to most goods and services, for example clothing, building materials, cosmetics, new vehicles, alcohol and tobacco, car and bicycle repairs, barber and hairdressing services, construction, cleaning, and accounting and coaching services.
The reduced 13.5% rate applies to the following, among others:
- foodstuffs and drinks (excluding alcoholic beverages), animal feed, and restaurant and catering services
- books, medicines, menstrual and incontinence products, and children's nappies
- sports services such as pitch bookings, golf and lift tickets, and admission tickets to cultural, entertainment and sporting events
- passenger transport and accommodation services
- public broadcasting, which moved from 10 % to 13,5 % at the start of 2026
- The 10 % rate applies to printed and electronic newspapers and magazines
The small-scale activity limit is €20,000
An entrepreneur does not need to register as VAT-liable if turnover in both the current and the previous calendar year is at most 20 000 €. The limit has applied since 1.1.2025, and it is assessed per calendar year, not per financial period.
Turnover includes taxable sales and, for example, sales subject to reverse charge, intra-Community sales and exports. Sales of fixed assets are not counted.
If the threshold is exceeded in the middle of the year, tax liability begins with the sale that exceeds the threshold, and that sale is fully taxable. Earlier sales in the same year are not taxed retroactively. It is advisable to submit the registration notification well before the threshold is exceeded so that tax can be added to invoices at the right time. The lower-threshold relief for VAT-registered businesses was abolished at the start of 2025.
Voluntary registration
An entrepreneur can apply to become VAT-liable voluntarily even if turnover stays below the limit. They can then deduct the VAT on purchases made for the business, but must add VAT to all their sales. Voluntary registration is valid from the date of application and is not made retroactively.
You can leave the register only when turnover has been at most 20 000 euros in two consecutive calendar years. The choice should therefore be made carefully: for someone selling to consumers, being tax-exempt can be a competitive advantage, while for someone selling to businesses and investing a lot, registration can be cheaper.
Registration, notification and payment
You register for VAT in OmaVero if the company already has a Business ID, or in the YTJ service when establishing the business or filing a change notification. Paper forms are used only in exceptional cases.
Value added tax is reported and paid in OmaVero by tax period. For monthly filers, the due date is the 12th day of the second month after the end of the tax period. For quarterly filers, the due dates are 12.5., 12.8., 12.11. and 12.2. For a calendar-year tax period, the due date is the last day of February of the following year. Smaller businesses can apply for a longer tax period. Late filing can result in a late-filing charge and penalty interest.
Calculate the price by tax rate
VAT is added to the price excluding tax by multiplying the price by the tax rate. For example, a price excluding tax of 100 euros is 125,50 euros at the 25,5 % rate and 113,50 euros at the 13,5 % rate. Consumers are always shown the total price including tax. Services Radar gathers the tax rates of the service sectors in one place, and the Finnish Tax Administration's business advice helps in borderline cases.
Frequently asked questions
What are the VAT rates in 2026?
The general rate is 25.5%, the reduced rates are 13.5% and 10%. In addition there is a zero rate and VAT-exempt services.
Is the 14% VAT rate still valid?
No. The rate fell to 13.5% from 1.1.2026. For example, 13.5% is now used for foodstuffs and restaurant services.
When must a small entrepreneur register as VAT-liable?
When turnover in a calendar year exceeds €20,000. Tax must be paid from the sale at which the limit is exceeded.
Calculate it yourself
- Hourly rate calculator for entrepreneurs: what hourly rate do you need? · free
- Annual service costs calculator: hairdresser, massage and others · free
Ready-made tools
- Renovation budget and household tax credit · Renovation budget, quote comparison and household tax credit calculator
- Service-sector entrepreneur's annual plan · Price list and margin €/h, 12-month sales plan, expenses, YEL, VAT threshold and net income
Sources
- Finnish Tax Administration: VAT rates
- Finnish Tax Administration: Minor business activity exempt from VAT (VH/1581/00.01.00/2024)
- Finnish Tax Administration: Small businesses' VAT liability is changing (press release 2024)
- Finnish Tax Administration: Registering as VAT-liable
- Finnish Tax Administration: How to report VAT
The article is general information and does not replace the guidance of an authority, a lawyer or an adviser. Check up-to-date information from the sources.