Finland raises value-added tax to 25.5% as part of fiscal measures

Finland is raising its general value-added tax (VAT) rate to 25.5% today, an increase of 1.5 percentage points from the previous rate of 24%. The new tax rate will apply to goods and services that were taxed at the earlier rate. According to the Finnish Tax Administration, whether the old or new VAT rate is applied depends on the delivery date of the product or the completion date of the service. However, if a prepayment for a good or service was received before the tax increase, the 24% VAT rate is still applicable to that prepayment.

This VAT hike is part of a series of fiscal measures decided by the government during their spring budget discussions. A calculator is available for consumers to check how prices will be affected by this change.