Compliance Alert - Changes to the general and reduced VAT rates

Update: Compliance Alert - Changes to the general and reduced VAT rates
Date: 2024-07-22

On June 28, 2024, the Finnish Parliament passed amendments to the Value Added Tax (VAT) Act. Starting  1 September 2024, the general VAT rate will increase from 24% to 25.5%.

More information about the application of the increased VAT rate can be found here.

Additionally, the Government has proposed changes to the reduced tax rates. Goods currently taxed at the 10% reduced rate will be shifted to a 14% reduced rate. These changes are expected to take effect on 1 January 2025.

The Ministry of Finance is currently seeking public comments on these proposed changes.

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