Finland will reduce its intermediate VAT rate from 14% to 13.5% effective 1 January 2026, according to the Finnish Tax Administration.
The rate reduction applies to goods and services currently subject to the 14% rate, including food products, restaurant and catering services, animal feed, sports and cultural activities, books (printed and electronic), medicines, passenger transport, and accommodation services. The change also extends the 13.5% rate to public broadcasting services, which previously applied the 10% rate.
The VAT rate applicable to transactions will be determined by the timing of supply or service performance. For goods, this is typically when the goods are delivered to the buyer's possession. For services, the determining factor is when the service is performed or made available to the customer.
For advance payments received before the rate change takes effect, the VAT rate in force when the payment is received by the seller will apply, regardless of when the underlying goods or services are subsequently delivered or performed.
The reduction forms part of Finland's broader tax policy adjustments and reflects the government's legislative proposal HE 93/2025 currently under parliamentary consideration.
