What business activities require or allow VAT registration?

Register for VAT if the company’s business turnover exceeds €20,000 in a calendar year.

Read what is included in the company’s turnover: 

VAT exemption for small businesses (detailed guidance, chapter 2.2)

If a company is engaged in both business and primary production and the combined turnover from these activities exceeds €20,000 in a calendar year, the company must register for VAT for both activities separately.

A company can register for VAT voluntarily even if its turnover does not exceed €20,000 in a calendar year. A condition is that goods and services are sold in the conduct of business. Read more about small business

A company entered in the VAT register must file VAT for each tax period even if it has not had any activity during the period.

Register for VAT if 

• you are engaged in primary production (such as agriculture, forestry, fishing, horticulture, fur farming or reindeer husbandry) and your turnover is more than €20,000 in a calendar year
  • you receive income from the sale of timber, for example, and your income is more than €20,000 in a calendar year
• if you are engaged in both primary production and other business and their combined turnover is more than €20,000 in a calendar year. Register for VAT for both activities separately.

You can register for VAT voluntarily even if your turnover does not exceed €20,000 in a calendar year. A condition is that you are engaged in primary production in the conduct of business.

A company entered in the VAT register must file VAT for each tax period even if it has not had any activity during the period. If you conduct only forestry, you do not necessarily always need to file a VAT return. Read more about reporting VAT on forestry (in Finnish) 

Register for VAT if your company’s business is otherwise exempt from VAT but you are liable to pay VAT for purchases or self-supply in one or more of the following situations:

• EU purchases of goods (intra-Community acquisitions), because they exceed €10,000 in the current or previous calendar year
• purchases of services from EU or non-EU countries, based on the reverse charge mechanism
• self-supply of property management services or restaurant and meal services.

You need to submit an application for VAT registration when your company’s business is otherwise exempt from VAT but it sells services in the EU falling into the scope of the general provision, on which the buyer is liable to pay VAT in another EU country (the reverse charge mechanism).  

Read more about VAT on international supply of services

When your company is registered for Notification of VAT on EU service supply, you need to submit the VAT return and the VAT EU recapitulative statement only for the reportable tax periods, for which sales of EU services were made.  

Note: When sales to other EU countries (= intra-Community supply) is part of your activities, you must submit VAT EU recapitulative statements, not only the usual VAT returns.

The VAT EU Recapitulative Statement – how to complete and submit the form

Register for VAT if you sell works of art created by yourself and your company’s business turnover exceeds €20,000 in a calendar year.

For purposes of value added taxation, works of art include items such as paintings, original engravings, sculptures and tapestry.

A company entered in the VAT register must file VAT for each tax period even if it has not had any activity during the period.

You can voluntarily request entry in the VAT register on certain conditions if you transfer the right of use to property to a tenant or a property company’s shareholder who uses the property or part of it in their own VAT-liable business operations continuously. 

Attach a rental agreement or another document on the rental. The document must specify the property or part of property that the registration request concerns. State the name and Business ID of the tenant if they are known to you. If you cannot name the tenant yet, provide other information on the basis of which it is possible to conclude that the property is suited for VAT-liable rental. For example, submit an account of the purpose of use of the property and the region’s planning regulations.

If you are already in the VAT register for business but also want to register for the transfer of the right of use to property, you must request VAT registration for the transfer separately.

Intra-Community acquisition of goods refers to the purchase of movable objects from another EU country.

A company can register for VAT voluntarily for intra-Community acquisition if the company’s business is otherwise exempt from VAT and if the intra-Community acquisitions do not exceed €10,000 in the current or previous calendar year.

If the acquisitions exceed the threshold, the company must register for VAT. In that case, select activity type Purchases and self-supply.

A performing artist, another performer or an athlete can register for VAT voluntarily when they sell their own performances and their income comprises performance fees and compensation paid by event organisers for the sale of the performances. Companies selling performances, such as event agencies, can also opt to register for VAT.

Performing artists include singers, musicians, actors and reciters. Other performers include presenters and speakers. Athletes are individuals competing in traditional sports (e.g. skiers, ice hockey players, rally drivers), but also golfers, triathletes, bodybuilders and esports athletes are counted as athletes.

You cannot register for VAT for any royalties you have received or if the performance fee or other compensation you have received is treated as wage income in income taxation. Read more: When is compensation regarded as wages?

If you have already been entered in the VAT register for business operations but also wish to register as a performing artist or an athlete, you must request VAT registration as an artist or athlete separately.

Please note that being registered for VAT means that you must submit VAT returns regularly even if you do not have any VAT-liable activities during the tax period.