EU VAT for Finnish businesses: who pays VAT in cross-border trade

Karma Accounts · Published 10 November 2026

In cross-border trade, a business in the Finnish VAT register charges Finnish VAT far less often than at home. Goods sold to a VAT-registered business in another EU country, and most services sold to EU businesses, carry no Finnish VAT: the buyer pays it in its own country, and you report the sale on your VAT return and the EC Sales List. On goods bought from another EU country and services bought from abroad, you calculate the Finnish VAT yourself and usually deduct it on the same return. Import VAT goes on the VAT return, exports outside the EU are zero-rated, and consumers elsewhere in the EU pay Finnish VAT only up to 10 000 euros of sales a year.

Registration, deadlines and deductions at home are in our complete guide to VAT in Finland; the general rate is 25.5 % since 1 September 2024 (VAT rates 2026).

Finland VAT in EU and foreign trade: who pays

Situation	Who pays the VAT	Finnish VAT return
Goods to a VAT-registered business in another EU country	the buyer, in its country	Sales of goods to other EU Member States; EC Sales List
Goods bought from an EU seller	you	Purchases of goods and Tax on goods purchased from other EU Member States
Services to an EU business (general rule)	the buyer, under reverse charge	Sales of services to other EU Member States; EC Sales List
Services bought from abroad	you, under reverse charge	general rule, EU seller: EU services fields; otherwise the domestic line for the service's rate
Goods or e-services to EU consumers	you: Finnish VAT up to 10 000 €, then the customer's country's	domestic sales; above the limit, goods as zero-rated turnover and VAT on the separate OSS return
Imports from outside the EU	you, if VAT-registered; otherwise Customs	Imports of goods and Tax on imports from outside the EU
Exports outside the EU	no Finnish VAT	Turnover taxable at zero VAT rate
Sales taxed in another country	you, there, if that country requires it	Turnover taxable at zero VAT rate

VAT you pay on a purchase is usually also "Tax deductible for the tax period", so it nets to zero, but it must still be reported.

Selling goods to another EU country

A sale is a VAT-free intra-Community supply (yhteisömyynti, AVL 72 a and 72 b §) when the buyer is a business in another EU country, has given you a VAT number from an EU country other than Finland, the goods are transported from Finland to another EU country, and you file the EC Sales List. Check the number in the Commission's VIES service before the first VAT-free invoice and save the result (VIES guide). Keep proof of transport: the waybill, or if the buyer collects, a certificate of who carried the goods, when, in which vehicle and to where. If a condition fails and no other exemption applies, the sale carries Finnish VAT.

The sale belongs to the month after delivery, or the delivery month if invoiced then (AVL 138 a §). The EC Sales List is monthly, even on a quarterly VAT period, and due by the 20th of the next month (EC Sales List guide).

Buying goods from another EU country

Goods from a VAT-registered EU seller, transported to Finland, are an intra-EU acquisition (yhteisöhankinta). You calculate Finnish VAT at the Finnish rate for the month after receipt, or the receipt month if the invoice came then too (AVL 138 b §). See intra-EU acquisitions.

Selling services to EU businesses

Under the general rule a service sold to a business is taxed where the buyer is established (AVL 65 §). A buyer in another EU country pays the VAT there, so your invoice has no VAT, shows the buyer's VAT number and says "reverse charge", and is issued by the 15th of the following month. The sale goes under "Sales of services to other EU Member States" for the month it was performed, and on the EC Sales List.

Real estate services, passenger transport, event admission, restaurant services and a few others are taxed where they take place, so in Finland they carry Finnish VAT whoever buys them. General-rule services to businesses outside the EU, and special-rule services that take place abroad, go under zero-rated turnover. See selling services abroad.

Buying services from abroad: reverse charge

A service taxed in Finland from a foreign seller not registered or established here is reverse charged: you owe the VAT (AVL 9 §). For a general-rule service from an EU seller, report the price under "Purchases of services from other EU Member States" and the VAT under "Tax on services purchased from other EU Member States". For a service from a non-EU seller, or an EU seller's service outside the general rule, report only the VAT, under "Tax on domestic sales by tax rate" at the rate that applies to the service; construction services have their own fields. General-rule services belong to the month they were supplied. Google, Meta and Adobe examples: reverse charge.

Selling to consumers in other EU countries: 10 000 euros and OSS

Distance sales of goods and electronic, telecommunications and broadcasting services to consumers in other EU countries carry Finnish VAT only while they total 10 000 euros or less without VAT this year and did not exceed it last year, and you are established in Finland only (AVL 69 m §). Above that, you register for VAT in each customer's country or use the One Stop Shop (OSS) to report it all in Finland on a separate quarterly return, due by the end of the month after the quarter. Distance sales of goods taxed in another country still go under "Turnover taxable at zero VAT rate" on your Finnish VAT return. See e-commerce VAT and the OSS.

Import VAT and Customs

The import declaration always goes to Finnish Customs (Tulli). If you are in the VAT register when it is accepted, you report the import VAT for the month of the customs decision (AVL 135 a §) under "Imports of goods from outside the EU" and "Tax on imports of goods from outside the EU", and usually deduct it. Otherwise Customs levies it. See import VAT.

Exporting goods outside the EU

Goods transported out of the EU by you or on your behalf carry no VAT (AVL 70 §), and you keep the deduction on your purchases. The usual proof is the decision on release with certification of exit from Customs; without proof of export, the sale is taxed as a domestic sale. Report exports under "Turnover taxable at zero VAT rate".

VAT registration in another country

You may have to register abroad when a sale is taxed there and the buyer cannot take over the VAT:

Goods installed or assembled abroad. Sold in the country of installation, where the seller must check its obligations, such as registering. Zero-rated turnover in Finland.
Construction work on a building abroad. Taxed where the property is; zero-rated turnover in Finland. Materials moved there are a transfer of your own goods.
Your own stock in another EU country. Moving goods there is an intra-EU supply: "Sales of goods to other EU Member States" and the EC Sales List, under the VAT number you hold in that country (call-off stock is an exception). The later sale there is zero-rated turnover in Finland.
Consumer sales over the 10 000 euro limit without the OSS.

For sales to businesses, each country may make the customer pay the VAT for a foreign seller (VAT Directive, Article 194), so whether installation or construction means registering depends on that country's rules. VAT paid in an EU country where you have no establishment and make no sales other than ones on which the buyer pays the VAT can be reclaimed in MyTax by 30 September of the following year; foreign businesses use the same EU procedure to reclaim Finnish VAT.

What the invoice must say

Sale	Note, for example	Also needed
Goods to an EU business	"VAT 0 %, intra-community supply", "AVL 72 a §" or "Art. 138, VAT Directive 2006/112/EC"	both VAT numbers; by the 15th of next month
Services to an EU business that pays the VAT	"Reverse charge" (käännetty verovelvollisuus)	both VAT numbers; no VAT rate or amount; by the 15th of next month
Export outside the EU	"VAT 0 %, export of goods", "AVL 70 §" or "Art. 146, VAT Directive 2006/112/EC"	proof of export kept

The entries can be in any language. See invoice requirements; our free invoice template adds the intra-Community and reverse-charge notes.

Worked example: one quarter

A Helsinki Oy files quarterly. In October–December 2026:

Machine parts for 6 000 euros from a Swedish wholesaler arrive with the invoice on 14 October: VAT 25.5 %, 1 530 euros.
Goods for 15 000 euros to a German customer, delivered and invoiced on 10 November: on the November EC Sales List, due Monday 21 December 2026.
Google Ads for December from Ireland, 2 000 euros: VAT 510 euros.
Finnish sales of 20 000 euros plus 5 100 euros VAT; 1 200 euros of deductible VAT on Finnish purchases.

Field on the Q4 return	Euros	From
Tax on domestic sales, 25.5 %	5 100	Finnish sales
Tax on goods purchased from other EU Member States	1 530	Swedish parts
Tax on services purchased from other EU Member States	510	Irish ads
Tax deductible for the tax period	3 240	1 200 + 1 530 + 510
Tax payable	3 900	7 140 − 3 240
Sales of goods to other EU Member States	15 000	German sale
Purchases of goods from other EU Member States	6 000	Swedish parts
Purchases of services from other EU Member States	2 000	Irish ads

Return and payment are due on Friday 12 February 2027. The cross-border items net to zero but must be reported. From a US seller, the 510 euros would go on the 25.5 % domestic line and the 2 000 euros nowhere.

What we do

Karma Accounts keeps the books and files VAT returns and EC Sales Lists for Finnish companies trading abroad, in English or Finnish. See our limited company accounting, or tell us about your trade through the quote request form.

Frequently asked questions

Do I charge Finnish VAT to a customer in another EU country?

Not to a VAT-registered business buying goods shipped from Finland or general-rule services. Consumers pay Finnish VAT up to the 10 000 euro EU limit, then their own country's VAT.

Do I need to register for VAT in another country?

Only when your sale is taxed there and the buyer cannot pay the VAT: stock held there, consumer sales over the limit without the OSS, or goods installed there, for example. Check that country's rules.

Is import VAT paid to Customs in Finland?

Not if you are in the VAT register when Customs accepts the declaration: you report it on your VAT return. Otherwise Customs levies it.

Is there one EU VAT, and what is the rate in Finland?

No. The VAT Directive 2006/112/EC sets common rules, but each EU country sets its own rates. Finland's are 25.5 % for most goods and services, 13.5 % for example for food, and 10 % for newspapers and magazines.

Sources

Please note: this is general information about Finnish rules, not advice for your own situation, and the rules change. Ask us before you act on it.

VAT returns off your desk?

We keep the books, file the VAT return by its due date and tell you the amount before it is due. A sole trader pays from 69 € a month and a limited company from 199 €, plus VAT.

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