VAT rates on the invoice

Through UKKO light entrepreneurship you can invoice with all VAT rates specified in the law. The selection is made when creating the invoice. VAT-free invoicing is also possible through us.

The value added tax rates, or VAT percentages, determine how much the value added tax is for each good or service. See below the different VAT rates and in which industry they are used:

• 25,5% General tax rate: most goods and services
• 14% Reduced tax rate: food, animal feed, restaurant and catering services (alcohol and tobacco products are not included in this tax rate). Starting in 2025, this tax rate will also apply to books, medicines, sports services, movie screenings, entrance fees to cultural and entertainment events, passenger transportation, accommodation services, and fees for performing artists, athletes, and entertainers.
• 10% Reduced tax rate: Newspapers and magazines, as well as compensation received from Yle television and radio broadcasting.
• 0% Reverse VAT liability in the construction industry: reversed VAT liability is mainly applied to works in the construction industry when the necessary conditions are met. In this case, it is the responsibility of the recipient of the invoice to pay the portion of the VAT to the state.
• 0% Other tax rates: assignment of copyright, performance fee, international ship work, work on water vessels and non-VAT (e.g. tips).

Conditions for reverse VAT liability in the construction industry

• The service buyer's conditions in the operation are to sell construction services or hire labor for construction services, and the sale must take place in Finland
• The seller's condition is that he sells construction services under certain conditions or hires labor for construction services.

Below are a few conditions that construction services must adhere to:

• For subsoil and foundations
• For construction work
• For building installation
• To finish the building
• For renting construction machines, when the machine and its operator are rented at the same time
• For building cleaning
• Labor hire for construction service.

More information on the matter can be found directly on the website of the tax administration: https://www.vero.fi/en/businesses-and-corporations/taxes-and-charges/vat/rates-of-vat/