Finland Value Added Tax

• Starting September 1, 2024 the standard VAT rate is 25.5% .
• There are reduced rates of VAT of 14% charged on food restaurants and catering and a super reduced rate of 10% charged on public transport services, books ,minor repairs and medicines.
• VAT is charged on assets and services in Finland as well as on imports into Finland.
• VAT returns are made monthly, the payment being due on the 15th of the month after the month of the report.
• There is an obligation to report to VAT authorities when the annual turnover is in excess of EURO 15,000.

Inheritance Tax/Gift Tax

• Tax is payable in Finland on both an inheritance and on gifts on the application of fairly similar tax principles.
• When either the donor of the gift/the testator or the recipient of the gift/the heir is a Finnish resident, the tax is also applicable to overseas assets.
• When neither the donor of the gift/the testator or the recipient of the gift/the heir is a Finnish resident, the tax applies only to real estate in Finland or shares in a company of which 50% of its assets are real estate inside Finland.
• When the tax is applicable in a foreign country, the overseas tax will be credited against the tax due in Finland unless it refers to real estate in Finland.
• As a general rule, recipients of gifts / heirs are divided into two groups:
  - Group 1 - a spouse, children, grandchildren and parents.
  - Group 2 - all others.
• In general, the rate of tax for Group 2 is much higher than Group 1.
• The rates of inheritance tax are :7%-19% . The rates for gift tax are 8%-17%.

• In Finland there is a Double Tax Prevention Treaty on inheritance tax with the Nordic Countries, the United States of America, Holland, France and Switzerland.
• In Finland there is a Double Tax Prevention Treaty on gifts tax with the Nordic Countries and with Greece only in the case of real estate.