Exciting Changes Coming for Finnish Businesses in 2025! Starting in January 2025, Finland will eliminate the VAT threshold relief for small businesses with an annual turnover of less than €30,000. However, Finnish businesses will now have the opportunity to take advantage of VAT exemptions in any EU country they operate in, thanks to new legislation proposed by the government.
The VAT threshold relief has been a significant tax benefit for small businesses, aiding approximately 80,000 companies in 2023 alone. While businesses can still apply for this relief for 2024, the abolition represents a major policy shift influenced by the EU’s small business directive.
This legislative update will not impact the minor operation threshold, which remains at an annual turnover of less than €15,000. Additionally, Finnish small businesses can now benefit from VAT advantages in other EU countries, enhancing their competitiveness in the European market.
To avail of these benefits, businesses must join a new EU-wide system tailored for small enterprises engaging in cross-border sales within the EU. This system provides VAT exemptions in other member states without the need to exceed the common EU sales threshold of €100,000.
This shift underscores Finland’s commitment to supporting small businesses and fostering growth in the European market. Stay tuned for more updates on these exciting changes!
HT
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