- Exemption and National Threshold: The SME scheme in Finland allows small enterprises to opt for simplified VAT obligations, with a national annual turnover threshold set at EUR 20,000. Taxable persons based in the Åland Islands cannot apply for this scheme, and the turnover must not exceed the threshold during the current or previous calendar year.
- Simplified VAT Obligations: Businesses that apply for the domestic SME scheme are exempt from several VAT obligations, including notifying the Tax Administration, VAT registration, submitting periodic VAT returns, issuing invoices, and maintaining VAT accounts. For cross-border SMEs, a single prior notification suffices for VAT registration across member states, along with a quarterly report including all supplies.
- Quarantine Period and Appeals: If a small enterprise exceeds the national or union threshold, it faces a quarantine period where it cannot benefit from the SME scheme in the following year. Appeals regarding the SME scheme should be addressed to the relevant Member State of establishment or exemption, depending on the issue.
Source ec.europa.eu
