VAT in Finland

1. What is the VAT in Finland?

Finnish VAT is mostly applied at a standard rate of 23%. There are however some exceptions from this rate. For instance, VAT for food products is 13%. Books, cultural events, accommodation and medicine are only subject to a 9% VAT rate in Finland. Nevertheless, exports outside the European Union are exempt from VAT. 

2. How can I get a VAT refund in Finland?

First of all, the Protocol Department of the Ministry for Foreign Affairs must confirm the company’s right to a refund after the application has been submitted. VAT cannot be refunded on certain goods and services, such as transportation, entertainment or cars acquisition. Only an authorised person may submit the application for refund or a representative empowered by a power of attorney. The claim can be presented at a local tax office or electronically, in Finnish, Swedish or English. Prior to submitting the application, the person must apply for an electronic ID card that permits them to log in on the Finnish tax administration portal. Invoices and import documents can be scanned and uploaded. 

3. How can I register for VAT in Finland?

It is not compulsory for a company to register for VAT in Finland unless the conditions met require this. Anyway, when the company registration is complete, the information about the newly set-up business will be sent to the tax authorities. For instance, companies which perform activities in the field of commerce and companies with the annual turnover that exceeds 8,500 EUR must register for VAT purposes. The procedure consists of filing an application together with the articles of association. VAT registration of the Finnish company is completed when the VAT number is issued.

4. How does intra-community VAT work in Finland?

Businesses involved in intra-community supply acquisitions in Finland are subject to a zero rated VAT, as long as they have fulfilled their notification duty. The duty of notification in Finland requires the submission of written information about intra-community selling and intra-community buying. This way, the reduced rate for VAT or exemption will be applied for the trading goods for or from Finland.

BridgeWest offers Company Registration in Finland, including virtual office services, opening of bank accounts and accounting services.