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Cuts on Reduced VAT to 13.5% Jan 2026

In the mid-year budget discussions, and external finance plan 2026-29, the Finnish government has proposed a 0.5% reduction in VAT from 14% to 13.5%. This would come into effect from 1 January 2026.

On 1 January 2025, many reduced rate supplies were shifted from the 10% rate to the 15% rate.

Source: vatcalc.com

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