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Rates of VAT

VAT rates determine what percentages of value-added tax must be paid on various goods and services. The table below contains examples of which VAT rates are applied on different types of goods and services. You can also use the VAT calculator to determine the correct VAT rate.

Note: The general VAT rate rises to 25.5% starting 1 September 2024

 

The general VAT rate. This rate is applied on most goods and services.

Please note: VAT rate is 24% until 31 August 2024 and 25.5% starting 1 September 2024

For example

  • household items
  • cosmetics
  • clothes and footwear
  • sports equipment
  • building supplies
  • new vehicles
  • tap water
  • alcohol and tobacco products
  • publications containing music or video, video games
  • hairdressing services
  • car and bicycle repair
  • shoe repair
  • accounting services
  • construction services
  • cleaning services
  • coaching services.
 25,5 %
Reduced VAT rate:
  • groceries
  • feed
  • restaurant and catering services

Groceries include, for example, foodstuff and drinks, ingredients and spices intended for making food and drink, and preservatives.

Feed includes animal feed, feed mixtures, ingredients and additives intended for making feed, industrial byproducts used as feed, and fish used as feed.

Restaurant services refer to the serving of meals in the seller’s own premises. Meal services refer to the serving of meals in premises chosen by the buyer.

Note: The reduced VAT rate of 14% is not applicable to alcohol or tobacco products.

 14 %
Reduced VAT rate:
  • books, newspapers and magazines (print and electronic publications)
  • pharmaceutical products
  • sports and fitness services, such as sales of tickets to a gym or indoor ice rink, to playing tennis or golf, or to a ski lift
  • entrance fees to cultural, entertainment and sporting events, such as theatre, circus, cinema, exhibitions, amusement parks, zoos and museums
  • passenger transport services (buses, trains, taxis, domestic flights)
    • Note: passenger transport services provided in Finland are subject to zero-rate VAT from 1 Jan 2023 to 30 Apr 2023.
  • accommodation services (hotels, motels, hostels, farm stays, camping sites for tents, camper vans or trailers, cottage rental)
  • royalties for television and public radio activities 
  • Note: sales of electricity, 1 Dec 2022—30 Apr 2023
    • however, sales of electricity transmission and access services to the electric power grid are subject to the 24-percent VAT rate
 10 %
Zero rate (purchases are deductible):
  • sales, rental and chartering of vessels specified in the VAT Act, and work performed on such vessels
  • tax-exempt sales of editions of membership bulletins to non-profit organisations
  • 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 the transport of passengers or goods by direct flight outside the EU.
  • Note: passenger transport services provided in Finland, from 1 Jan 2023 to 30 Apr 2023 (including taxis, train, bus, air travel and maritime passenger transport) 

0 %
The sales of certain goods and services are exempt from VAT (such as healthcare 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 (25,5%).

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 (25,5%). Pekka also sells training equipment to his customers. Their VAT rate is 25,5%.

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 (25,5%).

Frequently asked questions

The invoice that the restaurant or store presents to the customer covers the full performance (food+delivery) with only the VAT rate applied to meals or groceries (14%), on the condition that:

  • The restaurant or store is in charge of the delivery, having its employee deliver the food; or
  • The restaurant or store has engaged the services of a food courier company.

However, it is important to note that the company offering courier service is a supplier of transportation services, presenting an invoice to the restaurant or store with the general VAT rate 25,5%.

A pickup service means that the staff of the grocery store collect and package the products that the customer has ordered in boxes or bags for the customer to pick up. In addition, the store may deliver the products to the customer’s home. Both the pickup service and the home delivery are subject to the reduced VAT rate of 14%. 

Grocery stores also often sell other products besides groceries, and these are subject to another VAT rate. For example, cleaning products are subject to 25,5% VAT. If the customer’s order includes these products, the tax rate for the pickup service and home delivery is determined in proportion to the tax rates of the different products the customer has ordered.

Example: The customer has ordered €60 worth of groceries and €20 worth of cleaning products. Groceries are subject to 14% VAT and cleaning products to 25,5% VAT. The cost of the pickup and delivery service is €12. When divided in proportion to the different types of products, €9 of this amount corresponds to the groceries and €3 to the cleaning products.

 

Rates of VAT — other pages

Page last updated 9/1/2024