Finland

Companies not established in Finland providing “taxable supplies” of goods and services must obtain a non-resident Finland export VAT registration. In accordance with the EU VAT Directive, foreign traders are legally obligated to register for Finland export VAT in certain circumstances in order to report taxable transactions and declare VAT that must be charged.

All businesses with any commercial activity in Finland must assess their compliance obligations and register prior to commencing taxable transactions if applicable.

What you need to know

There are various scenarios that would trigger an obligation to register for VAT in Finland. Some of the most common examples are:

• Importing goods into Finland from outside the European Union
• Buying and selling goods in Finland
• Selling goods from Finland which are delivered to customers outside of Finland (business or private customers)
• Acquiring goods in Finland from another EU country (Intra-community acquisitions)
• Holding inventory in Finland for sale, distribution or consignment
• Participation or execution og construction projects in Finland
• When total E-commerce sales of goods to consumers in EU, exceeds the threshold of € 10,000 companies are now eligible for signing up for (One-stop-shop) called the OSS scheme by SKAT.

If you already do business or plan to do business in Finland, you should contact TIMEVAT immediately. We speak the language, have easy access to the Finnish authorities and now the procedures. Please contact us for advise and assistance.

VAT Rates, Formats & Thresholds

VAT Rates, Formats & Thresholds

VAT Rates		VAT Designation	VAT Number Format	Distance Selling Threshold	Intrastat Threshold
24%	(Standard)	ALV	FI12345678	€ 10,000 *)	€ 800,000	(Arrivals)
10/14%	(Reduced)				€ 800,000	(Dispatches)

*) As of 1st of July 2021 companies are eligible to sign up for (One-stop-shop) the OSS scheme by SKAT when the total annual EU sales exceeds the threshold of € 10,000.

VAT return periods
Monthly
Quarterly if annual turnover is between €25,000 and €50,000
Annually if annual turnover is below €25,000

Annual returns
No

EC Sales Lists frequency
Monthly

EC purchase lists
No

Other reporting requirements
No

Reverse charge
The reverse charge applies to supplies made by a non-established business to a VAT registered business in Finland. The extended reverse charge applies to certain domestic transactions such as construction services and sales of emission rights. Please contact us if you would like details of how the extended reverse charge works in Finland.

Fiscal repræsentation
A business established in a country outside the EU must appoint a tax representative to register for VAT in Finland if it is registering voluntarily. If the non-established business is required to be registered then the appointment of a tax representative is not compulsory.