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From 2025, companies with an annual turnover of less than €20,000 will no longer need to register for VAT. The current cap is €15,000.
Value-added tax (VAT) obligations for small businesses in Finland will change from the beginning of 2025, the Finnish Tax Administration announced on Wednesday.
Companies will no longer need to register for VAT or charge VAT to customers if their annual turnover is less than €20,000. The current limit is €15,000.
However, a business can voluntarily register for VAT even if its turnover is less than €20,000. This allows the business to deduct the VAT included in purchases made in connection with its business activities.
The threshold will be based on current and previous years’ turnover. If a business has a turnover of less than €20,000 in 2024 and expects it to remain so in 2025, it can be removed from the VAT register.
From next year, the tax office will also end the VAT relief scheme for small businesses, which currently offers tax breaks to VAT-registered companies with a turnover of less than €30,000.
Businesses can still apply for this relief in 2024.
The changes are part of Finland’s compliance with the EU VAT Directive.
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