Change in Finnish VAT rates from 1.7.2010

André Kumlander, 1.6.2010

The Finnish VAT rates will be increased by 1 per cent from 1 July 2010. The standard VAT rate will thus increase to 23 %. Correspondingly also the 8 % and 12 % rates will be increased to 9 % and 13 %. E.g. the rate for food supplies will increase to 13 % and the rate for person transports and hotel business will increase to 9 %. New exceptional rates are given to restaurant and meal service business the for which the VAT rate decreases from 22 % to 13 %.

The new VAT rates are adopted regarding goods, when the sold goods are delivered, goods are taken into own use, the EU purchase has been fulfilled, the goods are transferred from warehouse procedure or for imported goods the tax liability has been actualaised at 1.7.2010 or after this. When a prepayment has been received, the rate of the payment date is applicable. The goods have been delivered when delivered to the possession of the purchaser.

The new VAT rates are adopted regarding services, when the services are performed or taken into own use at 1.7.2010 or after this. When a prepayment has been received, the rate of the payment date is applicable.

For service deliveries, which are continuing at 1.7.2010, is used the rate applicable when the service is completed. The service is completed when it in reality has been in the use of the customer.

VAT rates until 30.6.2010 as of 1.7.2010
Standard rate 22 % 23 %
Reduced rate: Foodstuff and animal feed 12 % 13 %
Reduced rate: Restaurant and catering services 22 % 13 %
Reduced rates:
  • Passenger transport;
  • Transfer of the right to use premises for accommodation, or harbour facilities;
  • Services, which create opportunities for physical exercise;
  • Entry fees to theatres, circuses, musical and dancing performances, cinemas, exhibitions, sports events, zoos, museums and other corresponding cultural and recreational events and institutions;
  • Medicines;
  • Books;
  • Compensations based on TV-licence fees, which are received by the Finnish Broadcasting Company Ltd from State Television and Radio Fund, and the compensations, which are received by the Åland Islands´ Radio and TV Company Ltd from television licence fee revenues levied by the Autonomous Regional Government of the Åland Islands;
  • Works of art referred to in Article 79 c, however, in cases other than importation, only when the seller is the artist, or his successor, or occasionally an entrepreneur , other than the dealer liable to tax referred to in Article 79 a, paragraph 3;
  • Compensation related to copyright referred to in Article 45, paragraph 1, indents 3-5, to an organisation representing copyright holders.
 8 % 9 %
The reduced rate is in force until 31 December 2010: Hairdressing, minor repairing relating to bicycles, shoes, leather goods, clothing and household linen including alteration of clothing and household linen. 8 % 9 %

The reduced rate 13% is not applicable to alcoholic beverages referred to in the Act on Excise Duty on Alcohol and Alcoholic Beverages and tobacco products.

The tax paid for returnable packages and transport appliances, which entitle to compensation upon return, is as of 1 July 2010, 23% of the taxable amount.

 

Source: http://www.vero.fi/?path=488,489&article=2511&domain=VERO_ENGLISH

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