VAT rates in Finland
Finland imposes Value Added Tax (VAT) at different rates as follows for various goods and services:
1. Standard rate - 25.5%
The standard VAT rate in Finland is applicable to all taxable goods and services, except when a specific measure allows for a reduced rate.
2. Reduced rate - 14%
Groceries, feed, restaurant and catering services.
3. Reduced rate - 10%
Books, newspapers, pharmaceutical products, accommodation services, passenger transport, etc.
4. Zero rate - 0%
Tax-exempt sales of member’s magazines and advertisements to non-profit corporations, exports outside the EU, etc.
Source: https://www.vero.fi/en/businesses-and-corporations/taxes-and-charges/vat/rates-of-vat/
Domestic Daily Allowance
Domestic per diems in Finland may be paid out as follows:
| Trip duration | Amount |
| More than 6 hours (partial amount) | €24,00 |
| More than 10 hours (full amount) | €53.00 |
|
If travel time exceeds the last full day of travel:
|
€24,00 |
|
€53,00 |
In the following cases, the per diem should be halved:
- travel days (e.g. to and from the destination)
- if the employee receives a free meal, or a meal included with their travel ticket
Free meals comprise two free meals in the case of a full per diem, and one free meal in the case of a partial per diem.
Overnight allowance
An allowance for night travel can be paid only if the following conditions are met:
- at least 4 hours (during a day of travel for which the employee is entitled to a per diem) are between the hours of 9 PM and 7 AM
- the employer has not arranged and paid for accommodation for the employee, or paid them an allowance for accommodation or for a sleeping car berth.
The maximum allowance for night travel is €16 for 2025.
Foreign Daily Allowance
When employees are travelling abroad for business, they may also be entitled to a per diem. The maximum tax-free amount of this per diem varies by country and on the following rules:
| Trip duration | Amount |
| 10 hours or more | Foreign country rate |
| Less than 10 hours | Domestic domestic rate |
| Day of return to Finland | Half the per diem for foreign travel paid for the last completed day of travel if the business trip exceeds it by more than 2 hours |
| Day of return to Finland | A full per diem for foreign travel is paid for the last full day of travel if it exceeds the business trips by more than 10 hours |
The lump sum allowances employees are paid to cover their business travel expenses bust be reduced by 50% if the employee receives free meals or meals included in the price of a ticket or hotel room.
For the purposes of calculation of per diems for foreign travel, two free meals constitute ‘free meals’.
For business trips outside of Finnish territory without an overnight stay and where no other per diem is being paid, the maximum allowance for business travel is €18.
Mileage allowances in Finland
Employees travelling for business with their private vehicle in Finland may be entitled to a mileage allowance, the rates of which are as follows:
| Vehicle | Rate |
| Passenger car |
€0,59, raised by:
|
| Motorboat, up to 50 hp | €1,03 |
| Motorboat, more than 50 hp | €1,49 |
| Snowmobile | €1,42 |
| All-terrain quadbike | €1,34 |
| Motorcycle | €0,45 |
| Moped | €0,24 |
| Other means of transport | €0,14 |
| Transport of other persons on behalf of the employer | + €0,04 per passenger |
If an employee uses a company car for business travel, pays for the energy to run the vehicle and benefits from the “limited benefit”, they are entitled to a mileage allowance of up to €0,12 per km.
Receipts, records and other accounting material must be processed and stored in such a way that their contents can be viewed without difficulty and, if necessary, printed in plain language.
The content of a receipt, accounting or other accounting material may not be changed or removed after the financial statements have been prepared. The content may not be changed or removed even after the notification referred to in section 6 has been made or the entity obliged to keep accounts has published or made available to a third party the interim financial statements or other similar document it has prepared on the material.
The format of the receipt, accounting and other accounting material may be changed if it is necessary for processing, transfer or storage. In this case, the preservation of the content and the audit trail must be ensured.
Record retention in Finland for bookkeeping materials is 10 years and for invoices is 6 years.
Source: https://www.finlex.fi/fi/lainsaadanto/1997/1336#L2 https://www.finlex.fi/fi/lainsaadanto/1997/1336#entryIntoForce_20151620
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