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An overview by Borenius, Taxand Finland
The Finnish Parliament has recently approved changes to the application of reduced VAT rates, which took effect from January 2025. These changes will apply to sales with a tax point on or after this date, as well as to intra-Community acquisitions and imports of goods allocated to calendar months starting in January 2025.
Under the new legislation, goods and services currently subject to the lower reduced VAT rate of 10 per cent will transition to a higher reduced rate of 14 per cent. As of 1 January 2025, 10 per cent VAT rate will apply only to newspapers and magazines (both physical and digital) and VAT paid by public broadcasters Yleisradio Oy and Ålands Radio och TV Ab on their government-allocated appropriations. However, there is an intention that these appropriations will be transitioned to the higher reduced VAT rate as of 1 January 2026.
Henna Jovio and Anna-Riikka Nummi from Borenius, Taxand Finland have analysed these changes in further detail here.
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