Finland: VAT Rate Increase Reminder

admin — Tue, 08 Jun 2010 16:32:43 +0000

The VAT rates in Finland will change from 1st July 2010. All rates will increase by one percentage point so the new standard rate will be 23%. The reduced VAT rate for foodstuffs and animal food will be raised from 12% to 13%. Restaurant and catering services which are currently subject to the standard rate VAT will, as from 1 July, also enjoy the new 13% reduced rate.

Services which are currently subject to 8% will be liable to the new reduced rate of 9% from 1 July.

The new rates are applied to supplies made or services rendered on or after 1 July 2010. However, in respect of any payments (advance payments) received before the 1 July, the old VAT rates apply irrespective of the time of the supply of goods or the date the service is rendered.

Member states requested to comply with EU VAT law

admin — Tue, 24 Nov 2009 10:10:42 +0000

The European Commission has formally requested a number of member states to amend legislation which allows non-taxable companies to join VAT groups.

According to the European Commission, this current setup is "not in line with the proper application of Article 11 of the VAT Directive".

Proceedings have already begun against Ireland, Spain, Finland, Sweden, Denmark, the Netherlands and the Czech Republic.

The UK government has been given two months to amend its legislation to bring it in line with the EU otherwise the case may be referred to the European Court of Justice.

In the case of Sweden, the proceedings concern the fact that the country limits the VAT grouping system to financial and insurance services, which contravenes the VAT Directive.

Earlier this year in July, the commission adopted a communication on the VAT grouping option provided for in the VAT Directive, which set out how the regulation would be practically implemented.

Accordance » Finland

Finland: VAT Rate Increase Reminder

Member states requested to comply with EU VAT law