VAT Finland: The changes companies need to prepare for

From September 2024, there will be significant VAT changes in Finland, impacting various industries. Companies must understand the changes and prepare for the new challenges in order to maintain their financial stability and competitiveness.

The changes will affect various sectors differently and require careful preparation and efficient business management. It is essential to understand their impact and plan accordingly. The Ecovis experts know that effective management and proactive preparation will help businesses adapt to the new VAT rates and maintain their competitiveness in the market.

Key changes to VAT in Finland

• Increase in standard VAT rate: From 1 September 2024, the standard VAT rate will increase from 24 to 25.5 percent. This affects all goods and services not covered by reduced VAT rates.
• Changes in reduced VAT rates: The reduced VAT rate of 10 percent will increase to 14 percent, except for newspapers and periodicals. This change affects books, passenger transport, accommodation services, pharmaceutical products, and admission fees to cultural and entertainment events.

We can help you to maintain the competitiveness of your company despite new VAT regulations in Finland.

Jaana Palomäki, CEO, ECOVIS Finland Oy, Helsinki, Finland

How to prepare for the changes

• Efficient management: Businesses must update their accounting and invoicing systems to reflect the new VAT rates. This may require software updates and staff training on new procedures.
• Pricing strategy: It is essential to assess the impact of price increases and communicate to customers why prices are rising. Reviewing your pricing strategy helps minimise the risk of reduced demand.
• Financial planning: Companies should update their financial forecasts and budgets to align with the new VAT rates. This helps maintain cash flow management and anticipate potential economic impacts.
• Consultation and support: It is advisable to consult a tax expert to understand the implications of the changes and ensure compliance with the new regulations.

For further information please contact:

Jaana Palomäki, CEO, ECOVIS Finland Oy, Helsinki, Finland
Email: jaana.palomaki@ecovis.fi