13.12.2022 | Sini Paljärvi, Lotta Kallio
VAT REGISTRATION AND VAT COMPLIANCE IN FINLAND
In Finland, VAT is paid on the sales of goods and services. The standard VAT rate is 24%.
If a company is liable for VAT in Finland, the company must:
- register in the VAT register in Finland
- file VAT returns and make payments of VAT to the Finnish Tax Administration.
WHEN DO YOU HAVE TO REGISTER FOR VAT IN FINLAND?
Common scenarios when a company may be liable to or should register for VAT in Finland include:
- Buying and selling goods within Finland
- Company moving its own goods to/from Finland from/to another EU country
- Selling goods from Finland to other EU countries
- Acquiring goods from other EU countries into Finland
- Importing goods into Finland or into the EU via Finland
- Holding goods in a warehouse in Finland
- Selling goods to a private person
- Selling services relating to entry to events that involve teaching, science, culture, entertainment and sports, or to events such as fairs and exhibitions
- Selling passenger transportation services
- Buying construction services in Finland
- The company is considered to have a fixed establishment for VAT purposes in Finland
There is no VAT threshold in Finland for the registration of foreign businesses. Thus, a foreign business must register for VAT from the first day of starting activities in Finland.
WHEN DOES A COMPANY HAVE A FIXED ESTABLISHMENT FOR VAT PURPOSES IN FINLAND?
Examples of fixed establishments for VAT purposes include:
- construction, building and installation projects (lasting longer than nine months)
- offices and workshops
- production facilities
- retail outlets and trading locations
- mines, quarries, peat extraction sites, and other similar sites for the use of natural resources
- warehouses, inventories or stocks
VAT COMPLIANCE AND REPORTING IN FINLAND
Due date for filing the VAT return is the same as the due date for the payment of VAT. The general due date is the 12th of each month. Tax period can be either monthly, quarterly or yearly. The general tax period is monthly.
If the tax period is monthly, the due date is the 12th of the month following the month in question (i.e. VAT return and payment of VAT for January are due on 12th of March). If the 12th of the month falls on a Saturday, Sunday or public holiday, the due date is the next business day.
VAT returns must be filed via the electronic MyTax portal. VAT returns in paper form are only accepted for special reasons. In order to gain access to the MyTax portal, generally a representative must acquire Suomi.fi e-authorization to be able to file the VAT returns on behalf of the foreign company.
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