VAT to increase to 25.5% from September

By Logan Andersson On Jun 29, 2024

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The Parliament on Friday approved the amendments to the Value Added Tax Act proposed by the Kansallinen Kokoomus (National Coalition Party-NCP) led right-wing four-party alliance government.

With the changes in the law, the general value-added tax rate will rise to 25.5 percent from the existing 24 percent.

The tax on insurance premiums will also rise from 24 percent to 25.5 percent, as the tax rate on insurance premiums has followed the general value-added tax rate.

The amendments would enter into force on September 1, 2024.

The change is related to the state's second supplementary budget proposal for 2024.

The increases are estimated to strengthen the public finances by around 3 billion euros starting in 2025.

Source: www.dailyfinland.fi