Public consultation for VAT rate re-classification

Tungsten Automation is currently in the process of accommodating Finland’s standard VAT rate and IPT increases, which take effect from 1 September 2024.

However, further proposed tax changes are also being considered in in Finland.

A public consultation has been launched, which aims to acquire feedback on raising the VAT rate for specific goods and services from 10% to 14%.

Specific goods and services which are proposed as part of the transition include:

• Cultural performances
• Art
• Books
• Healthcare products

The VAT rate re-classifications are currently touted for 1 January 2025.

The public consultation outlining the categorisations will conclude on 19 August 2024.

The 10% and 14% VAT rate are currently effective in Finland, and the proposed changes do not therefore introduce any new VAT rate changes to the existing structure.

The draft bill (in Finnish) relating to the proposed VAT re-classifications can be accessed below:

Hallituksen esitys eduskunnalle (hankeikkuna.fi)