FINLAND INCREASES VAT TO 25.5%
As of 1 September 2024, Finland has increased its standard Value Added Tax (VAT) rate to 25.5%, positioning the country as having the second-highest VAT rate in the European Union, just behind Hungary's 27%. This change is part of a broader strategy introduced by the Finance Minister to ensure compliance with the Eurozone's fiscal rules, specifically the requirement that government deficits do not exceed 3% of GDP. The VAT hike is expected to contribute to raising €1 billion in additional revenue, alongside other cost-saving measures.
While the standard VAT rate in Finland has increased, the reduced rates of 10% and 14% remain unchanged. However, reclassifications of certain goods and services will take effect in 2025, leading to increased VAT rates for these items. For more detailed information see this comprehensive Finland VAT guide, which also provides insights into the VAT rates of neighbouring countries, including Norway, Sweden, and Denmark.
Source: vatcalc.com