The Finnish government sets the rates for the standard, higher VAT rate, as well as for any reduced rates. The EU requires the minimum standard rate is above 15%, and sets some broad rules on which goods may be classified as the reduced or nil rates. Any non-resident VAT registered company must use the Finnish rates, and will be held to account for any shortfalls in VAT charged.
The current rates are:
Once Finnish VAT registered, foreign companies must comply with the local rules on accounting, processing invoices and other measures. These include:
The tax point (time of supply) rules in Finland determine when the VAT is due. It is then payable to the tax authorities 10 days after the VAT reporting period end (monthly or quarterly).
For most goods, it is the time of delivery or passage of title. For services, it is the completion of the service.
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