| Update: | Compliance Alert – Changes of reduced VAT rates from 2025 |
| Date: | 2024-12-18 |
The Finnish Tax Administration published information about reduced VAT rates, which is applicable from January 1, 2025.
What reduced VAT rates will change?
As of January 1, 2025, the reduced 10% VAT rate will be changed to 14% for the following goods and services:
- Books (printed and electronic);
- Pharmaceuticals;
- Sports and fitness services, such as gym, golf, and ice rink bookings, and sale of ski lift tickets;
- Entrance fees to cultural, entertainment, and sporting events, such as theatre, circus, cinema, exhibitions, amusement parks, zoos, and museums;
- Passenger transport services (buses and coaches, trains, taxis, domestic flights);
- Accommodation services (hotels, motels, hostels, farm stays, camping sites for tents, camper vans or trailers, and cottage rental).
What reduced VAT rate will stay the same?
Newspapers, magazines, and public broadcasting will remain subject to a reduced VAT of 10%.
Are there any other upcoming changes in VAT rates planned?
Sanitary protection products and children's diapers, currently subject to 25.5% VAT, will be subject to a reduced VAT of 14% in the future.
Another planned change concerns candy and chocolate, whose VAT rate would rise from 14% to 25.5%. The change is scheduled to enter into force on June 1, 2025.