VAT rate change September 1st, 2024

The Finnish government has decided to increase the general VAT rate from 24 % to 25,5 % starting from September 1st, 2024. At Svea we are ready for the change and we strive to minimise the administrative effects the change brings to our customers. Before the change takes place we will inform different customer groups on the changes affecting them through our different channels.

The tax rate is determined by the delivery date of the goods

With the approaching change retailers must take into account the delivery date of the goods in the VAT rate of the goods. According to the Tax Administration the delivery date of the goods determines the VAT rate. If the order has been placed before September 1st but the delivery is September 1st or later the appropriate tax rate is 25,5 %.

It is crucial to bear in mind that the vendor has to file and pay VAT according to the delivery date regardless of the date the order was placed. Hence there is a risk that the client is charged VAT according to the old rate for goods that are delivered after September 1st – in this case the vendor will have to pay the difference themselves.

With individual orders or smaller sums this might not be an issue but with larger sales or longer delivery times there might be impact if VAT is charged incorrectly. It is good to consider your own sales and delivery times and if necessary plan ahead how to charge or when to deliver the goods so that you do not end up paying the 1,5 percentage point difference yourself.

Below you will find a simplified example of how the VAT is determined in regular sales. You will find more examples for different situations as well as the most current information from the Tax Administration's instructions.

This page is updated as the VAT rate change progresses.