Arvonlisävero, ALV
also known as VAT, GST, Sales Tax
ALV Tax Rates
There are 3 ALV rates in Finland, the most common of which is the general rate. In 2023 the rates are
- 24 %: General rate
- 14 %: Reduced rate for foodstuffs, restaurant and catering services, and animal feed
- 10 %: Reduced rate for books, pharmaceutical products, passenger transportation, accommodation, and certain other goods and services
- Finnish Tax Administration: Rates of VAT
Is ALV Included or Additional?
ALV is already included in most Finnish prices. In the case of supermarkets, shops and department stores you never have to calculate it and add it yourself. Services are the most likely prices not to have ALV included. In written prices a notation should always be present telling you whether ALV is included or not, similar to:
Hinta sisältää alv:n 24% - Price includes 24% VAT
Hinnat eivät sisällä alv. - Price does not include VAT
Top Tip: If you giving or receiving a quotation, make sure ALV is taken into account and that both parties are clear as to whether or not it is included in the price. This can prevent misunderstandings, which can be embarrassing &/or costly!
ALV, Customs and Online shopping
Note: Restrictions and exceptions to the following rules apply. For example, new motor vehicles and excisable goods such as tobacco and alcohol are subject to different tax and import laws.
From January 1st 2021, goods ordered from the UK must be declared, and taxes and possible customs duties must be paid.
EU Retailers: If you make an online purchase from a Finnish retailer or from another EU member state, ALV / VAT will be included in the price under the EU VAT Agreement. These purchases will not be liable to additional sales tax or customs duties upon arrival in Finland.
Non-EU Retailers: From 1 July 2021, all parcels arriving from outside the EU must be declared, and VAT has to be paid for them.
Very briefly:
Purchases worth 150€ or less:
If the seller has an IOSS number, you will pay the Finnish VAT when you purchase the goods. The postal company will usually declare the consignment on your behalf, and you do not need to take action - you will not need to pay VAT in conjunction with the customs clearance.
If the seller does not have an IOSS number, you will have to submit a customs declaration and arrange payment of VAT.
Purchases worth over 150€:
You must arrange the customs declaration and payment of VAT. You can do it yourself via the Import Declaration Service. Alternatively you can usually ask Posti or the transport company to submit the customs declaration on your behalf.
This information is from June 2023 See Finnish Customs for updates, details and instructions.
Finnish Customs: Ordering Goods Online
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