Finland lowered its reduced VAT rate from 14% to 13.5% starting 1 January 2026. The new rate applies to the same categories that were previously subject to the 14% rate, including groceries, restaurant and catering services, books, pharmaceuticals, passenger transport, accommodation, and certain cultural, sport and leisure services.
The applicable VAT rate is determined by the time of supply. For goods, this is usually the delivery date, and for services, the completion date. Advance payments received before 1 January 2026 remain subject to the 14% rate, even if the supply occurs after the rate change takes effect.
Businesses should ensure that invoicing, accounting and VAT reporting reflect the new reduced rate for all supplies from 1 January 2026 onwards.
Minka Saukko
BDO in Finland
The applicable VAT rate is determined by the time of supply. For goods, this is usually the delivery date, and for services, the completion date. Advance payments received before 1 January 2026 remain subject to the 14% rate, even if the supply occurs after the rate change takes effect.
Businesses should ensure that invoicing, accounting and VAT reporting reflect the new reduced rate for all supplies from 1 January 2026 onwards.
Minka Saukko
BDO in Finland