Change in Finnish VAT rates from 1.7.2010

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.

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