The Finnish Parliament has approved a law reducing the reduced VAT rate from 14% to 13.5% as of 1st January 2026. This measure applies to all goods and services currently subject to the reduced rate, including:
- food products and catering services
- passenger transport and accommodation
- books and cultural or sporting services
- medicines and animal feed
This change will affect both businesses selling these goods/services and their customers, with practical adjustments expected in billing and ERP systems, especially in cases of advance payments or staggered sales.
Furthemore, public broadcasting services (YLE) will also be subject to the new reduced rate of 13.5%.
VAT Compliance in Finland
We help businesses remain compliant and optimise their processes in response to tax changes such as this VAT rate reduction in Finland.
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