Rates of VAT

VAT rates determine what percentages of value-added tax must be paid on various goods and services.

 
The general VAT rate. This rate is applied on most goods and services. 24 %
Reduced VAT rate:
  • groceries
  • feed
  • restaurant and catering services
  • Note that the reduced VAT rate of 14% is not applicable to alcohol or tobacco products.
    14 %
    Reduced VAT rate:
  • books
  • pharmaceutical products
  • physical exercise services
  • film screenings
  • entrance fees to cultural and entertainment events
  • passenger transport
  • accommodation services
  • royalties for television and public radio activities
  • subscriptions to newspapers and periodicals (minimum one month)
  • 10 %
    Zero rate (purchases are deductible):
    • the sale, rental and chartering of VAT-exempt vessels and work performed on such vessels
    • tax-exempt sales of member’s magazines and advertisements to non-profit corporations
    • tax-exempt sales relating to warehousing procedures (tax warehouse in VAT)
    • exports outside the EU
    • sales of goods within the EU to VAT-liable buyers (guidance on VAT in EU trade)
    • other tax-exempt sales of goods and services relating to international trade, such as tax-exempt sales to diplomats and international organisations.

    0 %

    Some business operations are entirely exempt from VAT (such as health care and medical services).  

    Examples of VAT rates

    Massage service. Pekka is a sports massage therapist and therefore a health care professional. In addition to massage, he offers different kinds of relaxation treatments to his customers. Massage performed by a health care professional is exempt from VAT (0%). Relaxation treatments, however, are taxed at the basic VAT rate (24%). Pekka also sells training equipment to his customers. Their VAT rate is 24%.

    Dentist. Dentristry services are usually exempt from VAT (0%). However, aesthetic dental treatment (such as whitening) performed by a dentist is subject to VAT at the basic rate (24%).

    Musician or other performer. The fees of performing artists and other public performers are usually exempt from VAT (0%). Merchandise sales, on the other hand, are subject to VAT at the basic rate (24%). For example, a concert fee is exempt from VAT, but T-shirts sold at the concert are subject to VAT.