VAT Registration in Finland for Foreign Companies

Value-added tax (VAT) is a consumption tax applied to the sale of goods and services. VAT is generally payable when business activities take place in Finland, regardless of whether the seller is a Finnish or foreign entity.

For foreign companies entering the Finnish market, one of the first tax considerations is whether VAT registration is required.

When must a foreign company register for VAT in Finland?

A foreign business must register for VAT in Finland if it conducts taxable business activities in Finland.

Typical situations requiring registration include:

• The company has a fixed establishment in Finland that participates in sales
• The company sells goods or services in Finland and the reverse charge mechanism does not apply
• The company stores goods in Finland or carries out local supply of goods

In addition, foreign businesses might have to register when they perform certain EU-related transactions, such as intra-Community acquisitions or supplies in Finland.

Based on Finnish legislation, if the seller is a foreign company with no fixed establishment in Finland and the buyer is a Finnish VAT-registered business, the foreign seller may not need to register for VAT in Finland for that specific transaction. However, the situation must always be analysed in advance.

The VAT Registration Process 

Key steps of the VAT registration include:

• Submitting a notification and relevant attachment forms. In addition, supporting documentation about the business activities must be provided (at minimum, an extract equivalent to a foreign trade register showing the company’s name, domicile, line of business, financial year, and authorised signatories in English, Finnish or Swedish)
• Receiving a Finnish Business ID
• Receiving confirmation of VAT registration (the registration process typically takes 1–2 months)

Registration is typically submitted on paper forms, especially during initial registration for foreign companies.

Ongoing obligations after registration

Once registered, a foreign company has the same obligations as Finnish businesses, including:

• Filing regular VAT returns
• Paying VAT to the Finnish Tax Administration
• Keeping proper accounting records related to Finnish transactions

Failure to comply may lead to penalties and additional tax assessments.

Deregistration when activities end

If business activities in Finland end permanently, the VAT registration should also be terminated. This helps avoid unnecessary compliance obligations, such as ongoing reporting requirements, after operations have ceased.

Need Help with VAT Registration in Finland? 

At Gallant, we support foreign companies with VAT registrations in Finland on a regular basis, as well as with broader Finnish tax matters. We also provide ongoing services for the preparation and submission of VAT returns.