Finland 2026 VAT & Tax Changes: Digital Shift & Crypto Rules

December 21, 2025

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Starting in 2026, a set of administrative and tax changes will affect both how taxable persons interact with the Tax Administration and which deductions remain available in Finland. These changes include a reduction in the reduced VAT rate, an increased annual deduction for the forestry industry, a new obligation to provide information on crypto asset services, and the replacement of paper post mail with electronic tax mail.

Impact of VAT Changes on Businesses

From 2026, the Finnish Tax Administration will transition to a predominantly digital communication system, replacing paper letters with electronic tax mail. Therefore, the decision and other correspondence will be sent only to the MyTax accounts of individuals and businesses who have registered for MyTax and other public e-services.

However, those unable to use MyTax and other e-services will still be able to use traditional postal channels. This transition is part of the “Digital first” initiative, which aims to reduce paper usage and printing costs, with projected annual savings of EUR 10 million starting in 2026.

Also, from January 1, 2026, the reduced VAT rate, applicable to selected goods and services, including food, pharmaceuticals, restaurant and catering services, passenger transport such as taxi, and hotel accommodation, will be lowered from the current 14% to 13.5%.

The change in the VAT rate only affects the reduced VAT rate, while no changes are currently planned for the 25.5% standard VAT rate. As a consequence of this change, consumers should feel a slight financial relief, while businesses should expect a boost in demand and increased consumer spending.

Furthermore, Finland announced its plans to expand its collection of information on crypto asset trading, in line with international agreements and obligations. The Finnish Tax Administration will receive more transaction data, both within Finland and from abroad, as international information exchange becomes more extensive. The changes in the crypto asset field are based on the Crypto Asset Reporting Framework (CARF), developed by the OECD to which 70 countries and jurisdictions have committed, and on the EU's DAC8.

Conclusion

The 2026 tax changes reflect Finland's apparent shift toward digitalisation, increased transparency, and targeted tax adjustments. The move to electronic tax mail and expanded reporting obligations for crypto assets modernises administration and strengthens compliance. At the same time, the reduction of the reduced VAT rate provides modest relief for consumers and may stimulate business activity.

Source: Finnish Tax Administration, VATabout - Finland Proposes Reduced VAT Rate of 13.5% from 2026, VATabout - EU DAC8 Directive: Crypto Tax Reporting Rules & Compliance Guide

What VAT changes will take effect in Finland in 2026?

From 2026, Finland will lower its reduced VAT rate from 14% to 13.5% for selected goods and services, while the standard 25.5% rate remains unchanged.

How will Finland’s tax administration communicate with taxpayers starting 2026?

The Finnish Tax Administration will primarily use electronic tax mail via MyTax accounts, replacing most paper correspondence, though postal options remain for those unable to use digital services.

Which sectors are affected by the reduced VAT rate change?

The reduced VAT rate applies to food, pharmaceuticals, restaurant and catering services, passenger transport like taxis, and hotel accommodation, all of which will see a slight rate decrease.

What changes are planned for crypto asset reporting in Finland?

Finland will expand the collection of crypto asset transaction data, both domestic and international, in line with the OECD Crypto Asset Reporting Framework (CARF) and the EU’s DAC8.

What is the purpose of Finland’s “Digital first” initiative?

The initiative aims to reduce paper usage and printing costs, modernise tax administration, and improve efficiency, with projected annual savings of EUR 10 million starting in 2026.

How might these tax changes impact consumers and businesses?

Consumers may benefit from modest financial relief due to the lower VAT rate, while businesses could see increased demand and spending, alongside enhanced compliance obligations for digital reporting.

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