VAT for small businesses will change – new minimum threshold for tax liability of EUR 20,000

• The Finnish government has increased the VAT registration threshold for small businesses from 10,000 euros to 20,000 euros.
• This change was approved by the Finnish Parliament on June 18, 2024.
• The new threshold applies to both the current and previous calendar years.
• The new threshold will be effective from January 1, 2025.
• Businesses with an annual turnover of 20,000 euros or less in both the current and previous calendar years will be exempt from VAT registration.
• For more information, contact Marja Niiranen, Senior Ministerial Adviser.
• The Finnish Tax Administration has published a separate announcement regarding these changes.
• The general VAT rate in Finland will increase to 25.5% starting in September 2024.
• The Ministry of Finance is also reviewing VAT policies related to the digital age and plans concerning Ukraine.

Source: valtioneuvosto.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.