Rates of VAT

VAT rates determine what percentages of value-added tax must be paid on various goods and services. For examples of various goods and services and their VAT rates, see the table below. To find out how much the VAT is in euros, feed your data in to the Calculator.

 
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
  • newspapers and periodicals
  • 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 
 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). What business operations are exempted from VAT?  

Examples of VAT rates

Taxi enterprise. Matti drives a taxi for a living. In addition to transporting customers, he also offers food delivery services. Passenger transport services are subject to the reduced VAT rate of 10%. However, food delivery services are subject to the general VAT rate (24%).

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%).

Rates of VAT — other pages