Finland being an EU member state falls under the EU VAT regime. Member states must adopt EU VAT Directives into their own legislation.
Standard VAT Rate: 24%
Reduced VAT Rate: 10%, 14%
Registration Threshold Distance Selling: 35,000 €
EU VAT number format: FI99999999
Resident - EUR 8,500
Non resident - There is no registration threshold
IC Acquisition - EUR10,000
Non-resident companies with fixed establishments or providing certain types of services or providing services to private individuals have to register for VAT purposes when selling goods or services in Finland. Non-resident companies without fixed establishments need not to register if the reverse charge mechanism applies.
The application for the VAT registration is made using the special application form. The application should be submitted before commencing business operations in Finland.
Where the non-resident business has a permanent establishment in Finland, the competent regional tax office for registration purposes is usually the one where the permanent establishment is located. If the non-resident business does not have a permanent establishment, the competent tax office is the Uusimaa Regional Tax Office.
Detailed rules regulate reporting requirements of Finnish transactions for Value Added Tax purposes. These include: invoice requirements, timeliness for an invoice to be issued, invoice and credit notes corrections rules, foreign currency reporting requirements and exchange rate sources, correction of previously submitted returns and accounting records that must be maintained for VAT purposes.