Finland ends VAT threshold relief, opens door for small businesses to access EU VAT benefits

Starting January 2025, Finland will abolish the VAT threshold relief, historically aiding small businesses with an annual turnover of less than €30,000. Concurrently, Finnish businesses will gain the ability to capitalize on VAT exemptions in any EU country they operate in, according to new legislation proposed today by the government.

The VAT threshold relief has been a significant tax relief for small businesses, benefiting about 80,000 companies in 2023 alone.