Finland VAT Calculator 2026
25.5% standard, with reduced rates of 13.5% and 10% on specified categories.
Figures last reviewed
Finland VAT at a glance
- Standard VAT rate
- 25.5% — ranked 1 of 36 covered here
- Reduced rates
- 13.5%, 10% — applies to specified categories only
- Compared with the average
- +8.51 pts — average across the 36 countries covered is 16.99%
- Registration threshold
- 15,000 EUR — annual turnover above which registration becomes compulsory
- Rates verified
- 17 August 2026 — checked against the issuing tax authority
Finnish ALV: 25.5% — the EU's second-highest standard VAT rate from September 2024
Finland calls VAT arvonlisävero (ALV) and operates the highest standard VAT rate in the EU as of 2024 (Hungary's 27% is the highest). On 1 September 2024, Finland raised its standard rate from 24% to 25.5%. Three reduced rates apply:
- 14% — food and beverages (excl. alcohol), restaurant and catering services, animal feed
- 10% — books, newspapers, magazines (print and digital), pharmaceuticals, hotel accommodation, public passenger transport, cinema entry, sports services, radio & TV licence — note: the 10% rate is being reformed; from 1 January 2025 various items moved between 10% and 14%
- 0% — intra-EU supplies to VAT-registered customers, exports outside the EU, certain printed media for subscriptions
The 2025 reform added complexity: some categories that were 10% (sports, cultural events, entrance fees, accommodation) had components moved to 14%. Finland's tax administration (Verohallinto) publishes a category-by-category rate table each year — verify the current rate for your specific item before invoicing.
Registration thresholds and Small Business Scheme
The compulsory VAT registration threshold in Finland is EUR 20,000 in any 12-month period (raised from EUR 15,000 in 2025). Below the threshold, registration is voluntary; above, it's mandatory and you must register through Verohallinto's e-services within 30 days.
Finland also offers a graduated VAT relief (alarajahuojennus) for small businesses with turnover up to EUR 30,000 — registered businesses get a partial refund of VAT paid in proportion to how much under EUR 30,000 they are. The relief tapers linearly and disappears at EUR 30,000.
What 25.5% means for typical retail
- EUR 100 software subscription: ALV at 25.5% = EUR 25.50, gross EUR 125.50.
- EUR 10 grocery basket (14% on most food): ALV EUR 1.23 inside, net EUR 8.77.
- EUR 100 hotel night (10%): ALV EUR 9.09 inside, net EUR 90.91.
- EUR 25 e-book (10%): ALV EUR 2.27 inside, net EUR 22.73.
Frequently asked questions
Why did the standard rate go up?
The Finnish government raised the standard rate from 24% to 25.5% from 1 September 2024 to close the budget deficit. Reduced rates were initially left at 14% and 10% but the 2025 reform shifted several categories within those.
Are SaaS and software 25.5% or 10%?
Software products and SaaS subscriptions are 25.5% (standard rate). The 10% rate covers publication-style media — e-books, periodicals, print newspapers, audiobooks. Functional software is not a publication.
When are returns due?
Monthly returns are due by the 12th of the second following month. Smaller businesses (turnover below EUR 100,000) can file quarterly; very small (under EUR 30,000) can opt for annual filing. Returns are filed via OmaVero (the Finnish Tax Administration's portal).
Are sports and culture 10% or 14%?
Several categories — sports services, cultural-event admissions, certain accommodation elements — were rebalanced in the 2025 reform. Use Verohallinto's rate table for the specific service code; the calculator on this page assumes the standard 25.5% unless you switch the rate dropdown.
Does the small-business scheme apply to me?
If your annual turnover is below EUR 20,000 you can stay outside ALV altogether. If you're between EUR 20,000 and EUR 30,000 you must register, but you qualify for the graduated relief (alarajahuojennus). The relief is computed on your annual VAT return.
Official sources
Last reviewed: 2026-05-10.
How VAT works in Finland
Standard 25.5%, Reduced 13.5% (food, restaurants, accommodation), 10% (newspapers, magazines)
Calculating Finland VAT
Start from the price excluding tax
VAT is charged on the net price. At 25.5%, a net EUR 100 becomes EUR 125.50 once VAT of EUR 25.50 is added.
To work backwards, divide — never subtract
Removing VAT from a gross figure means dividing by 1.2550, not subtracting 25.5%. Subtracting the percentage from the gross amount understates the net price, and the error grows with the rate.
Check which rate actually applies
Finland applies reduced rates of 13.5% and 10% to specified categories. Standard 25.5%, Reduced 13.5% (food, restaurants, accommodation), 10% (newspapers, magazines) Using the standard rate on a reduced-rate supply overstates the tax.
Registration is threshold-based
Businesses with taxable turnover above EUR 15,000 a year must register and charge VAT. Below it, registration is usually voluntary — worth doing when your customers can reclaim the tax.
Worked example at 25.5%
Adding and removing VAT at 25.5%
| Component | Adding to a net price | Removing from a gross price |
|---|---|---|
| Starting amount | EUR 100.00 | EUR 1,000.00 |
| VAT at 25.5% | (EUR 25.50) | (EUR 203.19) |
| Result | EUR 125.50 | EUR 796.81 |
So a net price of EUR 100.00 in Finland costs EUR 125.50 once VAT is added. Working the other way, a gross price of EUR 1,000.00 contains EUR 203.19 of VAT, leaving EUR 796.81 net.
Computed from the same 25.5% rate the calculator applies, so this table and the calculator cannot disagree.
Countries with a similar rate
Finland VAT questions
What is the VAT rate in Finland?
The standard rate is 25.5%. Reduced rates of 13.5% and 10% apply to specified categories. That places Finland 1 of 36 of the countries covered here, 8.51 points above the 16.99% average.
How do I remove VAT from a price in Finland?
Divide the gross amount by 1.2550. At 25.5%, a gross EUR 1,000 works back to EUR 796.81 net with EUR 203.19 of VAT. Subtracting 25.5% from the gross figure is the common mistake and gives the wrong answer.
When do I have to register for VAT in Finland?
Once taxable turnover passes EUR 15,000 a year. Registering voluntarily below the threshold lets you reclaim input tax, which usually pays off if you sell mainly to other registered businesses and costs you if you sell to consumers.
Which countries have higher and lower rates than Finland?
Of the countries covered here, Finland has the highest standard rate at 25.5% and United Arab Emirates the lowest at 5%. Finland sits at 25.5%.