Finland Proposes Reduced Rate VAT Reduction

Candice Lindeman

June 3, 2025

During its mid-year policy review discussions, the Finnish government proposed decreasing the reduced rate VAT from 14% to 13.5%, effective January 1, 2026. Items currently subject to the reduced rate include groceries, pharmaceuticals, and passenger transport services, among others.

The Ministry of Finance’s press release announcing the proposal can be found here (in Finnish).

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Author

Candice Lindeman

Candice Lindeman is a Junior Regulatory Counsel in the Regulatory Analysis & Design Department at Sovos where she focuses on VAT and GST. Candice received a B.A. in Philosophy from Allegheny College and a J.D. from Duquesne University. Candice is a member of the Pennsylvania State Bar.

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