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.
|Reduced VAT rate:
Note that the reduced VAT rate of 14% is not applicable to alcohol or tobacco products.
- restaurant and catering services
|Reduced VAT rate:
- newspapers and periodicals
- pharmaceutical products
- physical exercise services
- film screenings
- entrance fees to cultural and entertainment events
- passenger transport
- Note: passenger transport services provided in Finland are subject to zero-rate VAT from 1 Jan 2023 to 30 Apr 2023.
- accommodation services
- royalties for television and public radio activities
- Note: sales of electricity, 1 Dec 2022—30 Apr 2023
- however, sales of electricity transmission and access services to the electric power grid are subject to the 24-percent VAT rate
|Zero rate (purchases are deductible):
- the sale, rental and chartering of VAT-exempt vessels and work performed on such vessels
- tax-exempt sales of editions of membership bulletins to non-profit organisations
- 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
- Note: passenger transport services provided in Finland, from 1 Jan 2023 to 30 Apr 2023 (including taxis, train, bus, air travel and maritime passenger transport)
|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%).
Frequently asked questions
If the restaurant or store handles the home delivery by itself, the tax rate applied to the meals or groceries (14%) is also applied to the delivery.
If another company handles the delivery process, the delivery is subject to the general VAT rate of 24%. The general VAT rate is also applied if the restaurant or store purchases the delivery service from a subcontractor.
A pickup service means that the staff of the grocery store collect and package the products that the customer has ordered in boxes or bags for the customer to pick up. In addition, the store may deliver the products to the customer’s home. Both the pickup service and the home delivery are subject to the reduced VAT rate of 14%. However, if another company handles the delivery process, the delivery is subject to the general VAT rate of 24%.
Grocery stores also often sell other products besides groceries, and these are subject to another VAT rate. For example, cleaning products are subject to 24% VAT. If the customer’s order includes these products, the tax rate for the pickup service and home delivery is determined in proportion to the tax rates of the different products the customer has ordered.
Example: The customer has ordered €60 worth of groceries and €20 worth of cleaning products. Groceries are subject to 14% VAT and cleaning products to 24% VAT. The cost of the pickup and delivery service is €12. When divided in proportion to the different types of products, €9 of this amount corresponds to the groceries and €3 to the cleaning products.
Rates of VAT — other pages
Page last updated 4/24/2020