- Lower threshold relief for value added tax will be removed, allowing internationally operating small businesses to benefit from VAT advantages in other EU countries
- Finnish companies will be able to utilize VAT exemption in the EU country where they sell their products or services
- The government has proposed a law change regarding this issue
- The relief is for businesses in the VAT register with an annual turnover of less than 30,000 euros
- The relief can still be applied for in 2024
- The change is due to the EU Small Business Directive, which eliminates VAT relief in EU member states
- The threshold for minimal activity remains unchanged
- The threshold is based on the turnover of the current and previous calendar year
- Companies can voluntarily register for VAT even if their turnover is below 15,000 euros
- The EU Small Business Directive allows member states to define the threshold for minimal activity, up to a maximum of 85,000 euros per year
- Finnish small businesses selling to other EU countries can benefit from VAT relief in those countries
- Different EU countries have different thresholds for minimal activity
- Finnish companies can join the EU Small Business VAT system to benefit from VAT exemption in other member states
- Companies selling only in Finland do not need to register in the system
- EU countries have a common 100,000 euro threshold for VAT-exempt sales
Source: vero.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.
