Rates of VAT

VAT rates determine what percentages of value-added tax must be paid on various goods and services.

 
The general VAT rate. This rate is applied on most goods and services. 24 %
Reduced VAT rate:
  • groceries
  • feed
  • restaurant and catering services
Note that the reduced VAT rate of 14% is not applicable to alcohol or tobacco products.		 14 %
Reduced VAT rate:
  • books
  • newspapers and periodicals
  • pharmaceutical products
  • physical exercise services
  • film screenings
  • entrance fees to cultural and entertainment events
  • passenger transport
  • accommodation services
  • royalties for television and public radio activities 
 10 %
Zero rate (purchases are deductible):
  • the sale, rental and chartering of VAT-exempt vessels and work performed on such vessels
  • tax-exempt sales of member’s magazines and advertisements to non-profit corporations
  • tax-exempt sales relating to warehousing procedures (tax warehouse in VAT)
  • exports outside the EU
  • sales of goods within the EU to VAT-liable buyers (guidance on VAT in EU trade)
  • other tax-exempt sales of goods and services relating to international trade, such as tax-exempt sales to diplomats and international organisations.

0 %
Some business operations are entirely exempt from VAT (such as health care and medical services). What business operations are exempted from VAT?  

Examples of VAT rates

Taxi enterprise. Matti drives a taxi for a living. In addition to transporting customers, he also offers food delivery services. Passenger transport services are subject to the reduced VAT rate of 10%. However, food delivery services are subject to the general VAT rate (24%).

Massage service. Pekka is a sports massage therapist and therefore a health care professional. In addition to massage, he offers different kinds of relaxation treatments to his customers. Massage performed by a health care professional is exempt from VAT (0%). Relaxation treatments, however, are taxed at the basic VAT rate (24%). Pekka also sells training equipment to his customers. Their VAT rate is 24%.

Dentist. Dentristry services are usually exempt from VAT (0%). However, aesthetic dental treatment (such as whitening) performed by a dentist is subject to VAT at the basic rate (24%).

Musician or other performer. The fees of performing artists and other public performers are usually exempt from VAT (0%). Merchandise sales, on the other hand, are subject to VAT at the basic rate (24%). For example, a concert fee is exempt from VAT, but T-shirts sold at the concert are subject to VAT.

Rates of VAT — other pages