The Finnish Tax Administration has updated the guidelines concerning VAT and single- and multi-purpose vouchers. Specifically, the guidelines have been updated to reflect recent court decisions concerning the VAT treatment of vouchers and several changes to Finland’s VAT rates.

Key VAT Rules for Vouchers

The Tax Administration noted changes relating to applicable VAT rates. In particular, the Tax Administration recalled that the standard VAT rate increased from 24% to 25.5% on September 1, 2024. Additionally, as of January 1, 2025, goods and services previously subject to the 10% reduced VAT rate, except newspapers, magazines, and broadcasting, moved to the 14% VAT rate. Finally, on January 1, 2026, this reduced rate was further lowered from 14% to 13.5%.

In general, the new VAT rate applies to a sale of goods or services when the liability arises on or after the date the new law enters into force. However, if a customer made an advance payment before the new rate took effect, the VAT treatment is generally determined by the legislation in force at the time of the advance payment. This means businesses need to consider both the date of the actual supply and the timing of any advance payments when determining the correct VAT rate.

In the updated guidelines, the Tax Administration stated that the Court of Justice of the European Union (ECJ) clarified the concept of a single-use voucher in Case C-68/23, Finanzamt O. The key ECJ case for VAT treatment of multi-purpose vouchers is Case C-637/20, DSAB Destination Stockholm AB.

Conclusion

The Finnish Tax Administration’s updated guidelines provide critical clarity on the VAT treatment of vouchers, aligning national practice with recent judicial developments and legislative changes to VAT rates. By emphasizing the distinction between single-use and multi-use vouchers, the updates underscore that classification often hinges on whether the place of supply and the applicable tax are known at the time of issuance.