Finland has three VAT rates in 2026. The standard rate is 25.5%, the reduced rate is 13.5% and the second reduced rate is 10%. The standard rate went up from 24% to 25.5% on 1 September 2024. The reduced rate went down from 14% to 13.5% on 1 January 2026. If what you sell has not been specifically assigned a reduced rate or an exemption, the rate is 25.5%.

In Finnish, VAT is arvonlisävero, shortened to ALV. You will see "ALV 25,5 %" on Finnish receipts and in OmaVero, the Finnish Tax Administration's (Verohallinto) online service. Same tax, Finnish decimal comma.

This page covers what falls under each rate, what changed and when, and which date decides the rate when a sale straddles a change. For the full picture, from registration to filing, see the complete guide to VAT in Finland.

What are the VAT rates in Finland in 2026?

There are three rates: 25.5%, 13.5% and 10%.

Most businesses invoice at the standard rate. Consulting, software, design, marketing, construction, coaching and nearly all physical goods sit at 25.5%. Alcohol and tobacco do too: the food rate explicitly excludes them.

Why did the reduced rate change from 14% to 13.5%?

The reduced rate dropped to 13.5% on 1 January 2026 as part of lowering the tax on food. The half-point cut applies to the whole reduced-rate band, not just groceries.

The change only took effect on 1 January 2026, which is why a lot of English-language guidance online is still wrong.

What goods and services fall under the 13.5% rate?

The 13.5% rate covers food and drink (excluding alcohol), restaurant and catering services, animal feed, pharmaceuticals, books in print and electronic form, passenger transport within Finland, accommodation, sports and fitness services, admission to cultural and sports events, and fees paid to performing artists and athletes.

Sanitary protection products and baby diapers joined this band on 1 January 2025, having previously been taxed at the standard rate. Public broadcasting services moved into it from 10% on 1 January 2026.

Check the Tax Administration's list before assuming: coaching services are at 25.5%, while a gym membership is at 13.5%.

What is still taxed at 10% in Finland?

Only newspapers and magazines, in print and electronic form, remain at 10% in 2026.

Most of the old 10% category, including books, pharmaceuticals, passenger transport and accommodation, moved up to 14% on 1 January 2025 and is now at 13.5%.

Did VAT on sweets and chocolate go up?

No. A plan to move sweets and chocolate to the 25.5% standard rate from 1 June 2025 was dropped when the Ministry of Finance halted the preparation on 4 March 2025. Sweets and chocolate are still taxed as food, which means 13.5% in 2026.

The increase was widely reported before it was cancelled, so some guides still get this wrong.

Which rate applies when a sale falls across a rate change?

The rate is set by when the goods were delivered or the service was performed, not by the invoice date.

So if you delivered reduced-rate goods in December 2025 and invoiced in January 2026, the rate is 14%, because delivery happened while the old rate was in force. If you delivered in January 2026, the rate is 13.5%, whenever the invoice goes out.

Advance payments follow the rate in force when the payment was received. An advance received before a change stays at the old rate, even if delivery happens after.

How does a rate change affect your pricing?

It depends on whether your prices are quoted with VAT or without it.

If your price list includes VAT and you keep it unchanged, a rate cut increases your margin. If your price list excludes VAT, the customer pays less and your margin stays the same. Neither is automatically right. Make the choice on purpose, not by accident.

For business-to-business sales it barely matters, because a VAT-registered customer deducts the VAT anyway (see which purchases you can deduct VAT on). To work out the tax on a given price, see how to calculate Finnish VAT on a price.

How do you spot outdated Finnish VAT information?

Three signs: the page quotes a 24% standard rate, it quotes a 14% reduced rate for 2026, or it lists books and medicines at 10%.

All three were true once. The standard rate was 24% until 31 August 2024, the reduced rate was 14% until 31 December 2025, and books were at 10% until 31 December 2024. Finnish VAT rates changed three times between September 2024 and January 2026, so on this topic the publication date matters more than usual.

Cross-border sales are a separate question, often invoiced without Finnish VAT at all: see how VAT works on EU and export sales.

How do you keep the right rate on every invoice?

The VAT rate belongs to the product, not to your memory. Once it is set on each product or service you sell, it carries to the invoice, into the books and onto the VAT return with the same value, without a separate check.

NoCFO is the all-in-one AI-native finance platform for entrepreneurs and founders. Invoicing, bookkeeping, payroll and reconciliation sit in one platform, the rate travels from the product to the invoice and into the books, and the figures for each VAT period build up from the bookkeeping automatically. Luca, AI CFO, tells you what the numbers mean and what to do next.

Tracking rate changes is not the accountant's fault or the founder's. The problem is one fact living in several places.

FAQ

What is the VAT rate in Finland in 2026?

The standard rate is 25.5%. The reduced rates are 13.5% and 10%.

When did the Finnish reduced VAT rate change to 13.5%?

On 1 January 2026. Before that it was 14%. The 14% band was widened on 1 January 2025.

What is the VAT on food in Finland in 2026?

13.5%. The same rate applies to restaurant and catering services. Alcohol is excluded and taxed at 25.5%.

Did VAT on sweets go up to 25.5% in Finland?

No. The Ministry of Finance halted the plan on 4 March 2025, and sweets and chocolate remain at the food rate of 13.5%.

Which rate applies if goods were delivered before a rate change but invoiced after?

The rate in force on the delivery date. The delivery or performance date decides the rate, not the invoice date.

See what a VAT period looks like when the rate travels from product to invoice to books without a separate check. Start for free at nocfo.io.

Sources (checked 28 September 2026)

• Verohallinto: Rates of VAT (rates, scope, 1 January 2026 changes including public broadcasting moving to 13.5%)

• Verohallinto: General VAT rate rises in September, delivery date decides the rate (advance payments, 24% to 25.5% on 1 September 2024)

• Valtiovarainministeriö: VAT on sweets will not be tightened (preparation halted 4 March 2025)