Most Common Questions and Answers about the VAT Change in January 2026

Which VAT change?

There are several VAT rates in use in Finland, and the change taking effect from the beginning of January 2026 concerns the reduced VAT rate meaning the industries that have so far applied the 14% VAT rate.

The reduced VAT rate of 10%, which applies to newspapers and magazines (printed and digital publications) and public broadcasting, as well as the general VAT rate of 25.5%, will remain unchanged.

The change will take effect on January 1, 2026, when the VAT rate will change from 14% to the new rate of 13.5%.

Who does the VAT change affect?

The VAT increase affects entrepreneurs and light entrepreneurs whose products or services fall under the general VAT rate.

VAT is a tax that is always added to the price of a product or service. Up until now, 14% VAT has been added to your prices, but going forward you will add 13.5%.

Light entrepreneurs without a business ID are not themselves registered for VAT, so the impact of the change on their operations is not as significant as it is for entrepreneurs with a business ID. However, invoices issued through the UKKO Light Entrepreneur service without a business ID still include VAT, so it is important to take this change into account, for example when pricing your work and when filling in the invoice form.

How will the VAT change appear in the UKKO service?

The new VAT rate will be available to select on invoices starting January 1, 2026, at which point the old VAT rate will be removed from the drop-down menu. However, the old VAT rate will automatically remain on invoice rows if the work completion date is in December or earlier. The invoice form will therefore automatically calculate the correct VAT rate based on the reported work dates.

The 14% VAT rate is therefore still correct during January and for invoices issued after that, as long as the service has been fully delivered to the customer by December 31, 2025.

If the work is a longer project, the VAT rate is determined by the completion date of the service. For example, if the invoiced work started in December and was completed in January, the correct VAT rate for the invoice is 13.5%.

For expense reimbursements, both VAT rates will be available in the drop-down menu. Select the VAT rate that corresponds to the purchase receipt.