How to register for the EU VAT scheme for small businesses
You can register for the EU VAT scheme for small businesses starting 1 January 2025. Companies established in Finland can register in MyTax by submitting a prior notification.
When you register for the scheme, enter the company's basic details and sector. Also specify the countries where the company intends to apply tax exemption. In addition, report the total value of goods and services sold in Finland and in other EU countries, itemised by country, for the current and the previous calendar year. Enter the amount excluding VAT.
Log in to MyTax (opens in a new window).
- Select the Tax matters tab on the home page.
- Scroll down to EU’s VAT schemes. Select Registration in the EU VAT scheme for small businesses.
- You are now in Basic details.
- Answer the questions regarding the EU VAT scheme for small businesses (Yes/No). If you have previously been registered in the EU VAT scheme for small businesses in another EU country, give details on the previous Member State of establishment and the Exempt ID previously issued to your company.
- Fill in the company’s basic details. The company’s name, Business ID and address are pre-completed. The information has been retrieved from the Tax Administration’s taxpayer register. Note: If your company’s address entered in the Tax Administration’s records is abroad, enter an address in Finland.
- Fill in any other VAT identifiers that are currently valid or have been cancelled in the EU. If your company is or has been registered for VAT in Germany and Sweden, for example, enter the VAT identifiers issued to your company in Germany and Sweden.
- Add the company’s line of business. Specify the sector with a 4-digit TOL code. Select at least one and no more than two codes. Read more about TOL codes: Standard Industrial Classification 2008 | Statistics Finland (stat.fi).
- Add your company's telephone number, email address and website address. The email address is mandatory. Enter your company's email address, not the address of an agent or accountant, for example.
- Add the contact information of a person who can give further information on the application.
- Proceed to the Country selection stage.
- Select the countries in which you are requesting tax exemption and the countries in which your company has had sales during the current year and the previous year. Note that these countries do not have to be the same.
Example: Your company has had sales in Estonia and Sweden, as well as in Finland. You want to apply tax exemption in Estonia in the future, because your company's turnover in Estonia is below the country’s national threshold for small businesses. In addition, you are planning to start business activities in Belgium and Germany, but your company does not have any sales in these countries yet. Select Estonia, Belgium and Germany in the first column, and Finland, Estonia and Sweden in the second.
5. Proceed to the Details on turnover stage. In this stage, you will see the countries you selected in the previous stage. Add the turnover details of the current and previous calendar years, excluding VAT. Some EU countries may require that details must be reported for the previous two calendar years, as well as the current year.
6. Go to Preview and send.
- Check the details before you submit them. If needed, you can make corrections by clicking Edit. Once all the details are correct, select Submit.
If the details you entered during registration change, report the changes in MyTax. Under EU VAT schemes, select Update to registration information in the VAT scheme for small businesses. Keep the company’s registration information up to date at all times.
Please note that registration in the scheme does not mean that you could immediately start applying tax exemption in all EU countries. When you register, request tax exemption in each country where you plan to apply tax exemption. You can start applying tax exemption only after the country in question has granted tax exemption to your company.
A company established in Finland can register in the EU VAT scheme for small businesses regardless of whether the company is registered for VAT in Finland. A company registered in the scheme is issued a unique Exempt ID, which is generated on the basis of the company's VAT number or Finland’s country code and the company’s Business ID. The Exempt ID is issued so that tax exemption could be applied in other EU countries.
Ending the use of the EU VAT scheme for small businesses
A company registered in the EU VAT scheme for small businesses in Finland can stop using the scheme on its own initiative, or the company can be removed from the scheme by the Tax Administration.
What to do if I want to stop using the VAT scheme?
Because the use of the scheme is voluntary, you can stop using the scheme or applying tax exemption in an individual EU country by notifying us in MyTax. You can stop applying tax exemption in an individual EU country because your company no longer sells goods or services in that country, for example, or you can stop using the scheme because your turnover exceeds the EU threshold or you terminate your business activities.
Example: A company established in Finland is registered in the EU VAT scheme for small businesses and applies tax exemption in Estonia and Denmark. The company wants to terminate its activities in Estonia. The company reports through MyTax that it no longer wants to stop applying tax exemption in Estonia. However, the company will continue applying tax exemption in Denmark.
When you want to stop using the scheme, report it in MyTax.
- If you stop applying tax exemption in one or more EU countries: go to EU VAT schemes and select Update to registration information in the VAT scheme for small businesses.
- If you end the use of the VAT scheme, go to EU VAT schemes and select Ending the use of the VAT scheme for small businesses.
- If you stop using the scheme because your company’s turnover has exceeded the annual EU threshold (€100,000): go to the Your tax types tab, select EU VAT scheme for small businesses and click Show details on VAT scheme for small businesses. A new window will open. Select Report that sales have exceeded the turnover threshold.
When can the Tax Administration remove a company from the VAT scheme?
The Tax Administration can remove your company from the VAT scheme in the following situations:
- Your company’s annual turnover in the EU exceeds the €100,000 threshold.
- Your company's turnover has exceeded the national threshold for small businesses in the EU countries in which you have requested tax exemption, and you can no longer apply tax exemption in any EU country.
- Your company's business activities have ended but you have not notified the Tax Administration.
Example: A company established in Finland is registered in the EU VAT scheme for small businesses and applies tax exemption in Estonia and Denmark. The company’s turnover in Estonia exceeds the country’s national threshold for small businesses. When the turnover exceeds the threshold, the company can no longer apply tax exemption in Estonia.
However, the company still has an Exempt ID because it can continue to apply tax exemption in Denmark. At a later date, the company's business activities increase and the turnover also exceeds the national threshold in Denmark, and the company can no longer use the scheme. The Tax Administration makes a decision to remove the company from the scheme.
However, if the company's EU turnover for the calendar year is still less than €100,000, the company can apply tax exemption in a third EU country, provided that the company's turnover is below the country’s national threshold. In such a case, the company can re-register for the scheme.