ALV

ALV

ALV (arvonlisävero, value added tax) is a tax on most sales of goods and services. You charge it to the customer and pay it to the Tax Administration. You may deduct VAT on purchases used in the taxable business.

The general rate is 25.5%. A reduced rate of 13.5% applies to certain goods and services (from 1 January 2026). Some sales are zero-rated or exempt. The rate for your product is listed on Vero.fi.

You must join the VAT register if calendar-year turnover exceeds 20,000 euros (threshold in force from 2025). If you cross the limit, VAT applies from the day the limit is exceeded. The former VAT relief at the lower threshold (alarajahuojennus) has been abolished. You may join the register voluntarily even below the limit.

The default tax period is a calendar month. You can apply for a quarterly period if turnover is at most 100,000 euros, or a yearly VAT period if turnover is at most 30,000 euros. You must file a return for every period, including a period with no sales.

Invoices must show the VAT rate, the VAT amount and your Y-tunnus. EU sales have extra invoice and reporting rules. Use MyTax (OmaVero) to register, file and pay.

Practical advice

Decide at founding whether to tick VAT on the YTJ form. Voluntary registration lets you deduct VAT on start-up purchases if those purchases relate to taxable sales.

If you sell to VAT-registered companies, they usually need a VAT invoice in order to deduct input VAT.

Where to seek advice

The best place to start is Finnish Tax Administration (Vero): https://www.vero.fi/en/businesses-and-corporations/taxes-and-charges/vat/

Vero.fi explains rates, the 20,000 euro threshold, EU VAT and how to file. Register and file in OmaVero after you have a Y-tunnus. For a first-time walk-through of the founding form, Uusyrityskeskus can sit with you: https://uusyrityskeskus.fi/yrityksen-perustajalle/palvelumme-alkavalle-yrittajalle/

All the necessary links

• vero.fi — VAT rates, registration and returns.
• OmaVero — File and pay.
• YTJ.fi — VAT tick on the founding notification.
• vero.fi VAT rate pages — General 25.5% and reduced 13.5%.