A VAT Refund Guide to 

Vat Refund Guide in Finland

How to get VAT Refunds from Vat Refund Guide in Finland for your business

Are you looking for updated information on Finnish VAT rates? Read on to learn more about detailed information VAT in Finland.
The below information details the requirements needed to be eligible for a VAT refund. This includes claimable expense types, Finland VAT rates, deadlines and claiming periods.
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Where is your company based?

EU

based businesses

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VAT-registered businesses in an EU member state are eligible to recover VAT on business costs from Vat Refund Guide in Finland under the EU VAT Refund Directive.

NON-EU

based businesses

non eu map transparent | VAT IT | Vat Refund Guide in Finland

VAT-registered businesses outside of the European Union are eligible to recover VAT on business costs from Vat Refund Guide in Finland under the 13th Directive.

Finland’s VAT Rates

Like many European nations, Finland began its VAT directive (called Arvonlisävero) in 1995, upon entering the European Union. Although the EU requires its members to meet a minimum 15% standard VAT rate, the Nordic nation went above and beyond—introducing their standard VAT rate at 22%.

Finland’s trend of levying above-average rates has continued through the years. In 2013, Finland’s standard VAT rate reached its current level of 24%. Today, this EU country boasts the fifth-highest standard rate in all of Europe.

Current Rates in Finland

Finland splits its VAT rates into the following four categories:

  • Standard rate (24%) – The standard rate covers any goods and services that don’t fall into categories eligible for reductions. In other words, most products land in this category. The tax on insurance premiums is also included under the standard rate.
  • Reduced rate (14%) – The first reduced VAT rate covers most foods for people and livestock, as well as restaurant and catering services.
  • Reduced rate (10%) – The second reduced VAT rate applies to written materials (books, newspapers, and periodicals in any format), medical supplies, admission to cultural events, accommodation, passenger transport, art, and sports and exercise services.
  • Zero rate (0%) – No Finnish VAT accompanies export deliveries, international transport, or some services related to non-profits.

How to Pay VAT Bill in Finland

Finland offers three VAT payment schedules:

  • Monthly – The monthly scheme for Finnish VAT payments is the standard option; most businesses follow this schedule. If you file monthly, your return is due on the 12th of the second month following the end of the tax period.
  • Quarterly – You can choose quarterly reporting if you earn less than 100,000 per year. If you file quarterly, your return is due on the 12th day of the second month following the end of the quarter.
  • Annually – You can choose to file annually if you earn less than 30,000 per year. If you file annually, your return is due at the end of February the following year.

It’s important to note that even if you had no sales during the filing period, you still need to submit a VAT return on time.

Finland collects VAT payments using an online system called MyTax. To pay your VAT bill, you’ll have to log in to your account using online banking codes, the Finnish Authenticator app, or a mobile certificate. You can also pay your value added tax or VAT bill via e-bank, though you should ensure that you’ve correctly copied the Finnish Tax Administration’s bank account number.

If you’re due a VAT refund, Finland will send the funds directly to your linked bank account. You can file for a Finland VAT refund and provide a bank account number through MyTax. Refunds should land in your account in a week.

Finland VAT Compliance

To comply with Finland’s VAT laws, you must:

Additionally, you must file your return on time. As of 2022, late payments incur a 7% interest fee.

If you need support filing a VAT return or submitting for a VAT refund, our expert team is here to help—contact us today.

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Sources:

Organisation for Economic Co-operation and Development. Consumption Tax Trends – Finland. https://www.oecd.org/tax/consumption/consumption-tax-trends-finland.pdf

Ministry of Finance Finland. Value Added Tax. https://vm.fi/en/value-added-tax

Vero Skatt. Making changes to the tax period for VAT. https://www.vero.fi/en/businesses-and-corporations/taxes-and-charges/vat/when-to-file-and-pay/tax-period/

Vero Skatt. Instructions for VAT payment. https://www.vero.fi/en/businesses-and-corporations/taxes-and-charges/vat/when-to-file-and-pay/how-to-find-the-information-needed-for-paying-vat-in-mytax/

Vero Skatt. Refunds of VAT, excise duties and other self-assessed taxes. https://www.vero.fi/en/businesses-and-corporations/taxes-and-charges/self-assessed-taxes/refunds-of-vat-and-other-taxes/

Vero Skatt. Instructions for completing the VAT return. https://www.vero.fi/en/businesses-and-corporations/taxes-and-charges/vat/when-to-file-and-pay/instructions-for-completing-the-vat-return/

Vero Skatt. VAT invoice requirements. https://www.vero.fi/en/detailed-guidance/guidance/48090/vat-invoice-requirements2/

Which countries have reciprocity with Vat Refund Guide in Finland?

All countries can claim

For a more detailed explanation on what reciprocity means within the scope of VAT, click here:

What expenses are claimable in Vat Refund Guide in Finland?

ENTERTAINMENT & HOSPITALITY

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Entertainment

0%
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Hotels & Accommodation

10%
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Restaurants

0%

EVENTS

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Conferences, Trade Shows & Exhibitions

24%
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Training Courses & Seminars

24%

GENERAL EXPENSES

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Goods

24%
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Inter-company charges

24%
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Office Expenses

24%
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Marketing Costs

24%
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Professional Fees & AP invoices

24%

TRAVEL RELATED

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Car Rental

24%
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Fuel

20%
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Public Transport

0%
| VAT IT | Vat Refund Guide in Finland

Taxis

10%

Additional Information

How far back can your business claim VAT from Vat Refund Guide in Finland?
January to December of the previous year
What’s the foreign VAT deadline in Vat Refund Guide in Finland?
30 June of the year following the claim year date
How long does it take to receive a VAT refund from Vat Refund Guide in Finland?
Depending on the complexity of your application and the capacity at the VAT authority, it can take up to 5 months to receive a VAT refund from Finland

Need help with your VAT refund from Vat Refund Guide in Finland?

You don’t have to do this alone. We’ve been helping companies reclaim foreign VAT refunds for over 20 years. We have the knowledge and technology to process your refunds quicker as well as attend to any unforeseen VAT authority queries that may arise.

Download a full international VAT guide and never miss a deadline

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