Finland – VAT rate change proposal

In June 2023, as part of a programme called “A strong and committed Finland”, the Finnish new government has proposed the following changes in VAT rates:

1) Increase in VAT rate from 10% to 14% on the following supplies:

• books
• pharmaceutical products
• physical exercise services
• film screenings
• entrance fees to cultural and entertainment events
• passenger transport
• accommodation services
• royalties for television and public radio activities
• The 10% rate would still apply to newspapers and magazines.

2) Reduction in VAT rate from 24% to 10% on menstrual products, nappies and adult incontinence pads.

The new government is due to start working on the above proposed actions in autumn.