- The government proposal aims to implement a special system for small businesses in line with the EU VAT directive
- The goal is to simplify and harmonize the tax system, reduce administrative burden, create equal opportunities for small businesses in the EU, and promote international trade
- Changes include removing the current relief related to the tax liability threshold and harmonizing the definition of the threshold with EU regulations
- Tax exemption will now consider the turnover of the business over a longer period, including the current and previous calendar years
- Registration requirements will change, with the obligation to register retroactively as a taxpayer before exceeding the threshold being removed
- Small businesses with annual turnover of up to 100,000 euros in the EU but no fixed establishment in Finland can benefit from tax exemption
- Businesses must register for cross-border tax exemption in one EU member state, and Finnish businesses can apply for similar exemption in other EU countries by registering in Finland
- The proposals are related to the 2025 budget and are intended to come into effect on January 1, 2025.
Source: vm.fi
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
