• The reduced VAT rate of 10% will increase to 14%. This applies to items such as books, medicines, sports services, and accommodation services.
• Newspapers, magazines, and public broadcasting will continue to be subject to the 10% VAT rate.

The timing of delivery and performance is crucial

For goods, the VAT rate is determined by the delivery date. If the goods are delivered before the end of the year, the old VAT rate applies. In 2025, the new VAT rate will be applied.

For services, the VAT rate is determined by the date the service is performed. If the service is performed before the end of the year, the old VAT rate applies. In 2025, the new VAT rate will be applied.

Advance payments are subject to the VAT rate in effect at the time the payment is received. If the advance payment is received before the beginning of 2025, the old VAT rate applies.

Checklist for entrepreneurs

Our business advisors, Tuija Räihä-Pundars and Kenneth Dalkvist, remind entrepreneurs to update their cash register systems, as well as their accounting and invoicing systems, to reflect the new VAT rates.

– Ensure that all invoices and receipts issued by your company are correctly updated and that your staff are aware of these changes, adds Räihä-Pundars.

– Inform your customers about the upcoming changes and any potential price adjustments. This will help avoid any confusion and maintain customer satisfaction. It is also important to provide training for staff on the new VAT rates and their application, concludes Dalkvist.