On 11 December 2024, the Finnish Parliament passed Bill HE 141/2024, under which goods and services currently subject to a reduced VAT rate of 10% will henceforth be subject to a reduced VAT rate of 14%.

Neither newspapers and magazines nor public broadcasting will be subject to this increase and will remain subject to the 10% VAT rate.

Examples of goods and services that will be subject to 14% VAT from 2025 are as follows:

  • books;
  • medicines;
  • sport and fitness services;
  • admission to cultural, entertainment and sporting events;
  • passenger transport services (buses and coaches, trains, taxis, domestic flights) ;
  • accommodation services.

For more information on this subject or to determine whether a reduced rate applies to your operations, please contact our experts.

Source: Finnish Tax Authority