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VAT registration in Finland

  • Currency: EUR

  • VAT is called: Arvonlisövero, abbreviated ALV

  • EU Member: Yes

  • Format VAT number: FI99999999 (FI + 8 digits for EU trade) or FO number 9999999-9 (for domestic trade)

  • VAT rate: 24%, 14%, 10%

Foreign companies that are not established in Finland, but that sell goods or services domestically in Finland, can in most cases avoid VAT registration. The reason is that Finland applies reverse tax liability / Reverse Charge if foreign companies sell exclusively to Finnish-registered companies. Reverse Charge means that the buyer must collect the VAT and that the seller invoices without VAT. However, the buyer's VAT number and why you invoice without VAT must be stated on the seller's invoice.

However, if the foreign company has any of the following operations in Finland, VAT registration may be necessary:

  • Domestic sales of goods to non-VAT registered businesses in Finland

  • Sales of electronic or telecommunications services to private individuals

  • Goods transports from Finland to other countries on behalf of private individuals, e.g. removal of household goods

  • Passenger transport in Finland

  • Own warehouse in Finland

  • Purchase of goods from the EU to Finland or sale of goods to the EU from Finland

  • Import to or export from Finland

  • Long installation projects

  • Resale of several types of costs (eg hotel accommodation or bus transfers in Finland) that occur at conferences, trade fairs, etc.

VAT registration in Finland

Applications for VAT registration in Finland are made on special forms sent to the National Board of Patents and Registration (PRS) in Helsinki. You must of course apply for VAT registration in good time before the taxable activities begin, but no later than 14 days before. VAT registration in Finland usually takes 2-3 weeks.

Voluntarily register for VAT in Finland is accepted.

VAT reporting in Finland

The VAT reporting period can be quarterly, monthly and in some cases even years depending on annual sales. If you conduct EU trade to and from Finland or transfer your own goods to Finland, e.g. in the case of inventories, in addition to the VAT report, an EC sales list must also be submitted. If the transfers exceed the Intrastat threshold, you must also report Intrastat.

Delayed submissions and paid VAT can lead to late fees.

In general, it can be said that it is not very easy to fulfil your declaration obligations in Denmark as in other countries, once you have managed to register for VAT. Foreign taxpayers, just like local companies, are expected to know the local deduction rules for VAT and otherwise the regulations that taxpayers in the country in question must follow. In addition, the electronic VAT returns prescribed may be difficult for foreign companies to submit. Each country has its own system and in many countries the signatory can be required to have a personal identity number from the country or that he or she personally collects a code for online reporting from the tax authority in the country.