Change in VAT rate that enters into force on 1 January 2025 will affect import VAT
The Government has put forth a proposal to the Parliament regarding the changes in VAT rates for goods. The proposed change is likely to enter into force on 1 January 2025.
The VAT rate of certain goods will rise
In the proposal, the VAT rate on books, medicinal drugs as well as on works of art have been raised from 10 per cent to 14 per cent. The change does not apply to newspapers and magazines. For importers of these goods, this means that as of January 2025, 14 per cent in import VAT must be paid for imported goods.
The VAT rate of certain goods will be reduced
In the proposal, the VAT rate of sanitary protection products, incontinence pads and baby diapers has been decreased from the current VAT rate of 25.5 per cent to the reduced rate of 14 per cent. For importers of these goods, this means that the VAT rate of imported goods will be decreased to 14 per cent as of January 2025.
The VAT rate for imports is determined by the date on which the customs declaration has been accepted
According to the Tax Administration’s instructions, the VAT rate is to be determined according to whether the goods are delivered to the customer before or after 1 January 2025.
The VAT rate for imports from outside the EU is determined according to the date on which the customs declaration has been accepted. If the customs declaration is accepted on 1 January 2025 or later, 14 per cent VAT will be levied. The VAT rate is 14 per cent even if you submit your customs declaration in advance in December 2024.
If you are an operator registered for VAT, declare the import VAT to the Tax Administration as before, but from 1 January 2025, according to the new VAT rate, that is 14 per cent. Read more in the MyTax instructions.
If you are an operator not registered for VAT, provide the adjustments to the transaction price for the calculation of the taxable amount for VAT in the customs declaration as before. Customs levies the import VAT with the customs clearance decision, and the VAT rate for the import is determined according to the date on which the customs declaration has been accepted.
Are you entering the additional fiscal reference code FR5 in your customs declaration?
If you are entering the additional fiscal reference code FR5 in your customs declaration, the VAT rate of the customs declaration is determined according to the date of purchase of the goods. The declarant lodging the customs declaration does not have to provide the date of purchase of the goods as additional information or any other new additional information affecting the VAT levy, because the seller or IOSS operator will provide the amount of VAT levied. Read more on the Tax Administration’s website if you are registered for IOSS and you are submitting import declarations.
Planned changes
The Finnish Government is also preparing to raise the tax rate for candy and chocolate from 14 per cent to 25.5 per cent. The change is scheduled to enter into force on 1 June 2025.
More information:
Read more in customer bulletin on the Tax Administration’s website “Changes to VAT rates as of 2025”.
yritysneuvonta@tulli.fi