How VAT (ALV) Works in Finland (2026): 25.5% Standard, 13.5% and 10%
- Author
- Radim Sekera — Independent developer and researcher
- Updated
- Review status
- editorial-review
- Publisher
- PayCalcEU
Finland applies value added tax (arvonlisavero, ALV) at a standard rate of 25.5%, a reduced rate of 13.5% (food and restaurant services) and a 10% rate (books, medicines, passenger transport, accommodation and cultural services). Businesses register when turnover passes the threshold. Verify with Vero (vero.fi).
The three ALV rates
Standard rate 25.5% (raised from 24% in September 2024) applies to most goods and services. The reduced rate of 13.5% covers food and restaurant and catering services. The 10% rate covers books, medicines, passenger transport, accommodation, and cultural and sporting events. Exports and intra-EU supplies are zero-rated; financial, insurance and health services are exempt. Confirm the correct rate with Vero.
Registration and returns
A business must register for ALV once taxable turnover exceeds the small-business threshold over a 12-month period; voluntary registration is possible below it. Registered businesses charge ALV on sales, deduct input ALV on purchases and file periodic returns. Confirm the current threshold and filing frequency with Vero.
FAQ
What are Finland's VAT rates in 2026?
Standard 25.5%, reduced 13.5% (food, restaurants) and 10% (books, medicines, transport, accommodation, culture). Exports are zero-rated. Verify the rate for your goods or services with Vero.
When must a business register for VAT?
Once taxable turnover exceeds the small-business threshold over 12 months; voluntary registration is available below it, which helps when you incur significant input VAT. Confirm the current threshold with Vero.
⚠️ Informational estimate, not tax advice. Payroll software may differ in edge cases. Verify with a professional.
Sources and claim support
- Verohallinto (Finnish Tax Administration) — "The general VAT rate 25.5%. This rate is applied on most goods and services." (accessed 2026-08-16). Supports 3 documented values used in this guide.
- Verohallinto (Finnish Tax Administration) — "The 14-percent VAT rate, called the reduced rate, changed to 13.5% on 1 January 2026" -- Verohallinto's guidance on when each VAT rate change takes effect (accessed 2026-08-16). Supports 1 documented value used in this guide.