Finnish value added tax, arvonlisävero on a receipt and almost always shortened to ALV, sits at the top end of Europe. The standard rate is 25.5 percent, the second highest in the European Union behind Hungary, and it has moved twice in two years after a long stretch of stability. Anyone pricing goods, reading an invoice or checking a supplier quote in Finland needs to know which of the four bands applies and how to move between the price before tax and the price the customer pays. This guide sets out the 2026 rates, the arithmetic in both directions, and the rules that decide who has to charge ALV in the first place.
The four bands in 2026
Finland runs one standard rate and three lower ones, and the correct figure depends on the product rather than the seller.
- 25.5 percent, the standard rate. The default for anything without a named exception: electronics, clothing, fuel, alcohol, hairdressing, building work, repairs and most professional services.
- 13.5 percent, the main reduced rate. Food and groceries, restaurant and catering bills, books, medicine, passenger transport, hotel nights, sport and fitness, admission to cultural and entertainment events, and menstrual products and nappies.
- 10 percent, the narrow reduced rate. Newspapers and magazines only, in both print and digital form. Nothing else now sits here.
- 0 percent, zero rating. Exports outside the EU, sales to VAT-registered buyers elsewhere in the EU, and the sale or charter of certain vessels.
A single shop can charge more than one band on the same receipt. A supermarket run mixing groceries at 13.5 percent with a phone charger at 25.5 percent prints two separate ALV lines, one per rate.
The table below applies both operations to a 100 euro figure at each band: on the left, 100 euros net with ALV added; on the right, 100 euros gross with the ALV pulled back out. For any other amount, keep the same multipliers and divisors.
| Rate | 100 net gives gross | of which ALV | 100 gross gives net | of which ALV |
|---|---|---|---|---|
| 25.5% | 125.50 | 25.50 | 79.68 | 20.32 |
| 13.5% | 113.50 | 13.50 | 88.11 | 11.89 |
| 10% | 110.00 | 10.00 | 90.91 | 9.09 |
| 0% | 100.00 | 0.00 | 100.00 | 0.00 |
Adding and removing ALV
Putting ALV on a bare price is the straightforward half. Take the rate as a decimal, add one, and multiply. At the standard rate a net price is multiplied by 1.255, so 100 euros before tax becomes 125.50 euros, of which 25.50 euros is ALV. At 13.5 percent the factor is 1.135, and at 10 percent it is 1.10.
Pulling the tax back out of a price that already includes it is where quotes go wrong. You divide by the same factor rather than knocking the percentage off the top. A 125.50 euro receipt at the standard rate divides by 1.255 to give 100 euros net, leaving 25.50 euros of tax. Subtracting 25.5 percent from 125.50 instead would land on 93.50 euros, which understates the net and overstates the tax, because the rate is charged on the smaller net figure and not on the gross. The Finland VAT calculator runs either direction on any amount and any of the four bands.
One mental shortcut is worth keeping. The ALV inside a standard-rated gross price is 25.5 divided by 125.5, which is about 20.3 percent of the total, a shade over a fifth. So knocking roughly a fifth off a Finnish gross price gets you close to the net, though for an exact figure you still divide by 1.255.
Worked examples both ways
- A tradesperson quotes 800 euros net for a job at the standard rate. ALV of 204 euros goes on top, so the invoice reads 1,004 euros. Read backwards, a 1,004 euro gross bill divides by 1.255 to show the same 204 euros of tax.
- A restaurant bill of 227 euros sits in the 13.5 percent band. Divide by 1.135 to get 200 euros net, so the meal carried 27 euros of ALV.
- A grocery receipt of 113.50 euros at 13.5 percent divides to 100 euros net and 13.50 euros of tax.
- A newspaper subscription of 110 euros at the 10 percent rate holds 10 euros of ALV over 100 euros net.
- An electronics receipt of 251 euros at the standard rate divides by 1.255 to 200 euros net, leaving 51 euros of tax.
For setting a selling price on top of a net cost, or checking the margin that price leaves, the markup calculator and the percentage calculator handle the same kind of sum. ALV is added after the margin is set, so it changes what the customer pays without touching the trader’s margin.
The two-year reform, band by band
The current rates are the result of two separate changes, which is why paperwork from different years will not match.
The standard rate rose from 24 percent to 25.5 percent on 1 September 2024, the first move in that band for years. Then on 1 January 2025 most of the old 10 percent categories, including books, medicine, passenger transport, accommodation, sport and event tickets, were lifted into a 14 percent band to raise revenue, while menstrual products and nappies were cut from the standard rate down to the reduced one. Finally, on 1 January 2026, that 14 percent band was trimmed to 13.5 percent to take some pressure off food and everyday services. Newspapers and magazines were left behind at 10 percent throughout. An invoice dated in 2025 will show 14 percent where a 2026 one shows 13.5 percent, so historical records will not line up with today’s rate.
Registering: the 20,000 euro line
A Finnish business must register for ALV once its turnover in a calendar year passes 20,000 euros, a threshold lifted from 15,000 euros at the start of 2025. Below that line registration is voluntary, and many small operators opt in anyway so they can reclaim the ALV on their own purchases. Registered businesses charge ALV on sales, deduct the ALV paid on business costs, and hand the difference to the Finnish Tax Administration, Vero, each reporting period. When taxed purchases outrun sales in a period, the balance comes back as a refund.
Zero-rated versus exempt
Two labels look identical at the till but differ for the seller. Zero-rated supplies, such as exports outside the EU, are taxable at 0 percent, so the seller charges nothing yet still reclaims the ALV on related costs. Exempt supplies, including healthcare, social services and most financial services, sit outside the system entirely: no ALV is charged, but the provider cannot recover the tax it pays on its own inputs, so that cost is baked into the price. To a customer both cost nothing in tax; to the business, only the zero-rated one keeps input deduction alive.
Frequently asked questions
What is the standard ALV rate in Finland in 2026? It is 25.5 percent, the second highest standard VAT rate in the EU after Hungary’s 27 percent. It applies by default to anything without a named reduced rate.
How do I remove ALV from a gross price? Divide the gross figure by one plus the rate as a decimal. Divide by 1.255 for the standard rate, by 1.135 for the 13.5 percent band, and by 1.10 for the 10 percent band. The tax is the gap between the gross and the net you get.
Why did the reduced rate change from 14 to 13.5 percent? The 14 percent band, created in 2025 when most 10 percent items moved up, was cut to 13.5 percent on 1 January 2026 to ease prices on food, catering, transport, accommodation and culture. Newspapers stayed at 10 percent.
When must a business register for ALV? Once calendar-year turnover passes 20,000 euros. Below that, registration is optional, though opting in lets a small business reclaim input tax.
Is anything taxed at 10 percent now? Only newspapers and magazines, in print and digital form. Every other category that used to sit at 10 percent moved up in 2025.
The rates and thresholds here come from the Finnish Tax Administration: see Rates of VAT and The changes to VAT rates, both from Vero. For the income side of Finnish tax, see the Finland salary calculator, the income tax calculator and our guide to Finnish take-home pay in 2026. This article is general information and not tax advice.