VAT (ALV) guide for entrepreneurs in Finland (2026)

What is VAT?

VAT is a consumption tax: you add it to your sales prices, charge it to the customer and remit it to the state. You can deduct the VAT included in your purchases, so in practice you pay only the difference between sales VAT and purchase VAT.

VAT rates 2026

• 25.5% — standard rate (most goods and services).
• 13.5% — e.g. groceries, restaurant and catering services, books, medicines, passenger transport, accommodation, sports services and admission to cultural, entertainment and sports events (lowered from 14% on 1 Jan 2026; not alcohol or tobacco).
• 10% — newspapers and magazines.
• 0% — e.g. exports outside the EU.

When is VAT registration mandatory?

You do not need to register for VAT if your turnover is no more than €20,000 in both the current and the previous calendar year (the threshold rose from €15,000 on 1 Jan 2025). If you exceed it during the year, you are liable for VAT from the date you exceed it, so it is worth registering in good time. Below the threshold you can register voluntarily if your activity is a business rather than occasional or hobby sales.

You can leave the register because of low turnover only once your turnover is no more than €20,000 in two consecutive calendar years (for the current year, based on an estimate) — so not in the same year your turnover drops. For example, if your turnover was €22,000 in 2024 and €18,000 in 2025 and you estimate that 2026 will also stay within €20,000, you can leave at the earliest on 31 Dec 2025. Removal from the register is never retroactive.

The small-business relief (alarajahuojennus) ended on 1 Jan 2025: it is not available for accounting periods starting on or after that date. For earlier periods it can still be claimed retroactively within three years of the end of the period — for 1 Jan–31 Dec 2024, by 31 Dec 2027. For an accounting period spanning the 2024/2025 year-end, only the 2024 months qualify. Figures checked against vero.fi on 21 Sep 2026; confirm your own situation with an accountant.

Is voluntary registration worth it?

If your clients are businesses or you make large purchases early on, voluntary registration is often worthwhile: you can deduct the VAT on your purchases. If you sell directly to consumers, VAT raises your prices — weigh the benefits case by case.

How is VAT reported?

VAT is reported and paid in MyTax (OmaVero). The tax period is usually a calendar month. If your turnover is small, you can apply for a longer period: a quarter if turnover is under €100,000, or a year if it is under €30,000. You must keep the chosen period for at least a year, but if your turnover exceeds the limit for the longer period, notify the Tax Administration without delay. A return is filed for every period, even when there has been no VAT-liable activity.

The due date is usually the 12th: for a monthly period, the 12th of the second month after the period ends (e.g. March VAT by 12 May); for quarterly periods, 12 May, 12 August, 12 November and 12 February; for an annual period, the last day of February of the following year. If the due date falls on a weekend or public holiday, it moves to the next working day. No extension is available for filing the return.

The most common mistakes

• The wrong rate (e.g. a restaurant meal or a book at 25.5% instead of 13.5%).
• Forgetting deductions on purchases.
• Late returns and payments (late fee and interest).
• Mishandling EU and foreign trade (reverse charge, OSS).

Help with VAT

We handle your VAT returns and advise you, in Finnish or Russian, on the correct rates and registration. That way you reduce the risk of mistakes and late-filing penalties.

Official sources

• Vero: rates of VAT
• Vero: VAT liability and registration for VAT
• Vero: instructions for completing VAT returns (incl. due dates)
• Vero: making changes to the VAT tax period
• Vero: VAT relief for small businesses (alarajahuojennus)