The VAT relief for small businesses will end

The Finnish VAT relief for small businesses will no longer be granted from the beginning of next year. Companies whose turnover for 2024 does not exceed €30,000 can still request the relief for 2024.

Information regarding the VAT relief will be provided in the VAT return for the last tax period of 2024. Companies whose tax period is a month and whose accounting period differs from the calendar year have the right to apply for relief for the accounting period preceding the entry into force of the law.

The turnover threshold for corporate VAT liability will increase

In future, companies are required to register for VAT if their turnover exceeds €20,000. In 2024, the threshold was €15,000. The relevant turnover will be calculated based on the calendar year’s turnover as opposed to the accounting period’s turnover. The previous year’s turnover will also be taken into account in these calculations.

In addition, a new VAT scheme for small businesses will be introduced in the EU. The new scheme will expand the VAT exemption granted to small businesses to companies established in other EU countries.

Read more: Changes in VAT assessment for small businesses

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