In June 2023, as part of a programme called "A strong and committed Finland", the Finnish new government has proposed the following changes in VAT rates:

1) Increase in VAT rate from 10% to 14% on the following supplies:

• books
• pharmaceutical products
• physical exercise services
• film screenings
• entrance fees to cultural and entertainment events
• passenger transport
• accommodation services
• royalties for television and public radio activities
• The 10% rate would still apply to newspapers and magazines.

2) Reduction in VAT rate from 24% to 10% on menstrual products, nappies and adult incontinence pads.

The new government is due to start working on the above proposed actions in autumn.

If you have any questions on the impact of the above changes on your business, please contact us here