1stopVAT’s Post

Big changes are coming to Finland! 🇫🇮 The Ministry of Finance has proposed a VAT rate increase from 24% to 25.5%, set to take effect on September 1, 2024. This bold move aims to boost public revenue but comes with significant challenges and potential public disapproval. If passed, Finland will rank among the EU countries with the highest VAT rates. Consumers and businesses alike should prepare for the impact on retail prices and spending. Stay informed and share your thoughts! 💬 #1stopVAT #Finland #VATIncrease #FinanceReform #EconomicPolicy #PublicRevenue

Finland On 16 April 2024, the Finnish Government announced a future VAT rate increase as part of its General Fiscal Plan for 2025 – 2028. The standard VAT rate will be increased from 24% to 25.5% to strengthen public finances. Some reclassifications are also announced for the goods and services currently subject to the 10% reduced VAT rate, which moves them to 14%.

Finish Government Agrees on Financial Policy for 2025-2028 and Announces Tax Increases   On 16 April 2024, the government reached an agreement to finance the fiscal deficit of 3 billions EUR. This agreement provide in particular tax increases. It concernes overall indirect taxes and VAT with the increase of the standard VAT rate to 25,5%. As a reminder VAT rate in Finland is currently 24%. Increase concerns as well sweets things (candies and chocolate) who are subjecting to the standard VAT rate instead of the reduced VAT rate of 14%.   This increase in the VAT rate will take effect from September 1, 2024.   Companies will need to update their accounting and invoicing software as quickly as possible. Their prices and contracts will also have to be modified to take account of the rate change. #finland #vatrate #increase

🚨 Important Update for Businesses in Finland! 🚨 Starting in 2025, there will be significant changes to VAT rates in Finland. 📊 Here’s what you need to know: ⚡ VAT Rate Changes: 🔹 The current 10% rate will mostly shift to 14%. 🔹 Certain product groups will see a decrease from 25.5% to 14%. 🔹 VAT on sweets will increase to 25.5% in June 2025. 🍬 ⚡ Exceptions: 🔹 Newspapers, magazines, and public broadcasting will remain at 10%. 📰📻 ⚡ Small Businesses: 🔹 Removal of the lower limit relief. 🔹 Threshold for minor business activity will increase from €15,000 to €20,000. 💼 🔹 VAT exemption for minor activities in other EU member states from January 2025. 🌍 These changes aim to reduce the administrative burden on small businesses, promote international trade, and create equal operating conditions within the EU. 📈 Need help navigating these changes? Our experts are here to assist! 🤝 https://lnkd.in/e95_fh8T

📢 Attention all businesses operating in Finland! 🌐 The Finnish government has just rolled out some important tax updates that you'll want to be aware of. Starting September 2024, the standard VAT rate is set to increase from 24% to 25.5%, positioning Finland just behind Hungary for the highest VAT rate in the EU. What does this mean for your business? It's time to start planning. 📊 From accounting system updates to strategic pricing reviews, there's a lot to consider. The reduced VAT rates for certain commodities will also see some shifts, so staying informed is key. Don't let these changes catch you off guard. Let's ensure your business is ready for a smooth transition. For a detailed breakdown of what's to come and how to prepare, check out our latest newsletter. Knowledge is power, and we're here to empower you every step of the way. #VATUpdate #Finland #TaxNews #BusinessPreparedness #EYInsights

First introduced in 2022 as a Covid stimulus measure, #Vietnam reduced the standard VAT rate on Goods and Services from 10% to 8%. This temporary 2% reduction for most (although not all) items subject to the standard 10% rate has already been extended a number of times, with the Ministry of Finance recommending it be extended further to at least June 2025. https://lnkd.in/gcvxPqXn

📚 Slovakia's government is proposing a drastic VAT hike on books, from 10% to 23%, with only textbooks exempted at 5%. This increase aims to reduce the government deficit but at the cost of Slovakia’s culture. Slovakia's Finance Minister, Ladislav Kamenický, suggests that books are a luxury primarily purchased by wealthier citizens. However, the Slovak Publishers and Booksellers Association strongly disputes this, pointing out that the majority of book buyers are middle-class. This VAT hike threatens Slovakia's small book market, potentially reducing the number of books published, sold, and read. Beyond the economic impact, it risks harming education, literacy, and cultural access for the country’s readers. If passed, Slovakia would become the second European country without a reduced VAT on books. Juraj Heger, chair of Slovakia’s Association of Publishers and Booksellers, emphasizes that this policy will raise prices, further reducing book sales and potentially failing to achieve its revenue goals. We stand with our colleagues in Slovakia, who are fighting to protect access to books and the cultural future of their country! 📢 Read more here ➡ https://lnkd.in/eKeT2gZt

📢 VAT Rate Changes in Europe for 2025 At Edenred Finance, we’re committed to keeping you informed about key updates that may impact your finances. Here’s a quick look at VAT rate changes in Slovakia and Estonia for 2025. Make sure to keep these updates in mind to avoid any surprises. Staying informed and prepared is the key to effective planning. ✅ #EdenredFinance #TaxNews #VATChanges

April 10th, 1954: Between Strikes and Croissants, Maurice Lauré Invented the VAT for France (But What's Next?) 🇫🇷 Ah, France! Land of delectable pastries , revolutionary thinkers , and... the Value Added Tax (VAT)? That's right, today on April 10th, we mark the anniversary of this tax system, a brainchild of French authorities in 1954 that forever changed how consumption is taxed. While not exactly a cause for celebration (unless you enjoy lively debates with your accountant ), VAT's impact on global economies is undeniable. Before VAT: Cascading taxes at each stage of production distorted markets and inflated prices. VAT aimed to streamline this by taxing the "added value" at each step. ➡️€ The Global VAT Wave: Following France's lead, VAT adoption snowballed across Europe and beyond. Today, over 160 countries rely on VAT, making it the dominant consumption tax system. ➡️ But the story doesn't end there: VAT rates and exemptions vary widely, creating complexities for businesses operating internationally. Additionally, the rise of e-commerce poses new challenges for VAT collection. Looking Ahead: As the globalized economy continues to evolve, so too must VAT. Standardization efforts and digital solutions are on the horizon, aiming to make VAT more efficient and less of a burden. ➡️ #VAT #TaxHistory #GlobalEconomy #FutureofTax

🌍 OECD’s 2024 Tax Policy Reforms: VAT Highlights The newest OECD Tax Policy Reforms report showcases global VAT trends, such as temporary VAT cuts on energy and food products to counter inflation. Sectors like hospitality and tourism also benefited from VAT relief post-pandemic. Countries such as Estonia, Turkey, and Switzerland increased VAT rates, while others modernized VAT laws to capture digital services. Additionally, several nations raised VAT registration thresholds to ease small business burdens. 👉 Stay updated on global VAT changes: https://lnkd.in/gSEiNy7H #VAT #OECD #TaxReforms #DigitalEconomy #GlobalTax