Finland proposes a reduction to the reduced VAT rate

1 May 2025

The Finnish government have proposed a reduction of their reduced VAT rate from 14% to 13.5%.

If accepted, this change would come into effect from 1 January 2026 and will apply to the following goods and services:

  • Accommodation services
  • Admission to cultural events
  • Books
  • Cultural and sports activities
  • Imported artworks
  • Medicines
  • Passenger transport services

It was also confirmed that the 10% reduced rate, which applies to newspapers and public broadcasting, will remain unchanged.

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