Finland raises VAT registration threshold

Thu 12th Feb 2015

The new Finnish 2015 budget has raised the annual VAT registration threshold for resident businesses from €8,500 to €10,000.

VAT registration threshold on non-resident entrepreneurs

The threshold does not apply to foreign, non-resident traders from the EU or any other country. They are still required to register with the Finnish authorities if they are providing taxable supplies that trigger a foreign VAT registration. This includes: importing goods into Finland from outside the EU; holding warehouse stocks.

For sellers to consumers via the internet, there is a special EU distance selling VAT threshold regime. This enables e-commerce merchants to initially sell under the domestic VAT number, charging the VAT rate of their home country. Once they go over Finland’s distance selling threshold, €35,000 annual sales to Finnish consumers, they must register for Finnish VAT and report to the tax office.