Making changes to the tax period for VAT

The tax period for VAT refers to the period (month, quarter, year) for which you file and pay VAT. The tax period depends on your company’s turnover.

When a new company is established, the company determines and reports the length of its tax period. The company can determine its tax period at the same time as it registers for VAT. In this case, the tax period comes into effect as the company’s operations start.

Typically, the tax period is one calendar month. However, if the company has a small turnover, you can request a longer tax period:

• if the annual turnover is no more than €100,000, the VAT period can be one quarter.
• if the annual turnover is no more than €30,000, the VAT period can be one quarter or one year.

If your tax period is longer than one calendar month and your turnover exceeds the above turnover thresholds, report the change to the Tax Administration immediately. The turnover threshold is determined based on the annual turnover or comparable profit laid down in the Accounting Act.

Please note that the tax period for VAT does not have to be the same as the tax period for employer’s contributions.

The tax period of agricultural and forestry operators and visual artists is usually one calendar year

The VAT period of agricultural and forestry operators, primary producers and visual artists is one calendar year. The turnover has no effect on the length of the tax period. This concerns individuals, estates of deceased persons and partnerships that do not have any other activities subject to VAT.

Note: If a primary producer or visual artist also has other business activities, the VAT return on all activities usually has to be submitted for a tax period of one calendar month. If the combined turnover of all the business activities is small, the primary producer or visual artist can request a tax period of one quarter or one year.

How to change the tax period or report changes

You can request a change to your tax period

• in MyTax: Select the Taxpayer details tab, and then go to Business operations and click Change tax period.
• on a paper form: Request form for change of tax period of self-assessed taxes (4071)
• on the Notification of changes form (ytj.fi), if you report other changes regarding the company at the same time.

The tax period must remain unchanged for at least one year. This means that you can request a change to the company’s tax period when at least 12 months have passed since the company started business operations or its tax period was changed last.

However, if your company’s turnover exceeds a threshold for a longer tax period, inform the Tax Administration immediately in order that the company’s VAT period could be shortened.

If you have not reported that your company’s turnover has exceeded the threshold, the Tax Administration can make a decision to shorten your company’s tax period. This may happen if the Tax Administration discovers that the turnover no longer qualifies for a longer tax period.

When does a new tax period enter into force?

The Tax Administration sends you a decision on the new tax period and the start date of the new tax period. Until then, file and pay VAT according to the requirements of your current tax period. If your company exceeds the turnover threshold for a longer tax period, you will receive a decision that your request has been rejected. Likewise, your company is not entitled to a longer tax period if you have failed to submit VAT returns on time or failed to pay your taxes.

The longer tax period will be applied as of the beginning of the year following the request.

Example: The company’s tax period is one calendar month. The company requests a tax period of one quarter in August 2024. The new tax period enters into force starting from January 2025. The company must submit its first VAT return according to the new tax period, i.e. for January–March, by 12 May 2025.

If the company’s tax period is shortened, the new period enters into force starting from the next, shorter tax period following the request. Note: In this case, you must file a VAT return and pay the VAT for the months preceding the change before the due date of the previous, longer tax period.

Example: The company’s tax period is one year. The company requests a 1-month tax period in July. The new tax period enters into force on 1 August. The VAT for the part of the tax period that preceded the change (1 January–31 July) must be filed and paid by 12 September. The VAT for August must be filed and paid by 12 October.