- Starting in 2025, companies in Finland with annual turnovers less than €20,000 will be exempt from registering for VAT.
- The current VAT registration threshold is €15,000.
- Small businesses will not need to charge VAT to their customers if their turnover is below the new threshold.
- Businesses can still voluntarily register for VAT to deduct VAT on business-related purchases.
- The turnover threshold will be based on the current and previous year’s turnover.
- If a business’s turnover in 2024 is below €20,000 and expected to remain so in 2025, it can be removed from the VAT register.
- The Finnish Tax Administration will end a VAT relief scheme for small businesses starting next year, which currently benefits businesses with turnovers below €30,000.
- Businesses can still apply for the VAT relief for the year 2024.
- These changes align with EU directives on VAT compliance.
Source: yle.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.
