The Finnish Tax Administration has updated its VAT guidance following changes to reduced VAT rates that took effect on 1 January 2025, with most goods and services previously subject to the 10% rate now falling under the 14% reduced rate.
The 14% reduced rate now applies to accommodation and sports services, admission fees for cultural, entertainment and sporting events, passenger transport services, medicines and books. Newspapers, magazines and public broadcasting services remain subject to the 10% VAT rate and are unaffected by the changes.
The Tax Administration has updated its general VAT guidance and multiple sector-specific instructions to reflect the rate changes. Updated guidance covers areas including accommodation services, sports services, education, travel industry VAT, commission trading, used goods, distance selling of goods, and general-interest organisations. The guidance includes extensive examples demonstrating the application of the revised rates across different business scenarios.
The rate restructuring represents Finland's implementation of EU VAT Directive provisions on reduced rates, aligning the country's VAT system with broader European frameworks while maintaining certain national policy priorities for media and broadcasting services.
