Finland raises its general VAT rate from 24% to 25.5% from 1 September 2024

What changed in detail

Law 462/2024 (Laki arvonlisäverolain 84 ja 85 b §:n muuttamisesta) was adopted in Helsinki on 5 July 2024 on government bill HE 61/2024 vp and published in the Finnish Statute Book on 8 July 2024. It amends two sections of the Value Added Tax Act (1501/1993):

• Section 84, the general rate: “The tax payable is 25.5 per cent of the tax base, unless otherwise provided in section 85 or 85 a.”
• Section 85 b: the tax on returnable packaging and transport containers is also 25.5%.

The law entered into force on 1 September 2024. It applies where the obligation to pay tax arises on or after that date, and to intra-Community acquisitions allocated under section 138 b to calendar months after it.

The law did not change the reduced rates in sections 85 and 85 a, which were then 14% and 10%.

What it means

The 25.5% general rate is still in force. The reduced rates have moved since: Law 691/2024 shifted most 10% items to 14% from 1 January 2025, and Law 1358/2025 cut that rate to 13.5% from 1 January 2026.

For invoices that straddle the change, the test is when the obligation to pay tax arose, not the invoice date alone. Supplies with a tax point before 1 September 2024 stay at 24%.