Set up Finnish taxes in your Shopify store

Selling products on Shopify involves more than building an online store; it also requires complying with local tax requirements, including VAT if you operate in Finland.

Correct VAT calculation on a Finnish Shopify store depends primarily on your VAT-registered status.

Sufio, an invoicing app for Shopify stores, uses your tax settings to generate accurate, compliant invoices for every order, so getting these settings right from the start makes bookkeeping much easier down the line.

This article covers the basics of Finnish VAT, including when you need to register your business, and walks you through setting up taxes for a Shopify store based in Finland.

Last updated on July 28, 2026.

This article covers:

• What is VAT?
• Tax settings
• Tax rates in Finland and the EU
• Selling goods to customers in Finland
  • My business is not VAT registered
  • My business is VAT registered
• Selling goods to customers in other EU Member States
  • Selling as a micro-business
  • Surpassing the micro-business threshold
  • Country-specific registration
• Selling goods outside the EU
• Where to find further information
• Invoices

VAT (Value Added Tax) is a general consumption tax applied to goods and services. It's an indirect tax that's ultimately borne by the end consumer, not the business.

As a result, VAT isn't a cost to your business. If you're VAT-registered, you're required to collect VAT from customers and remit it to the government by including it in the sale price charged to consumers.

VAT is charged on the value added at each stage of the production and supply chain at the applicable VAT rate.

To prevent the same value from being taxed multiple times, VAT-registered businesses can deduct the VAT they were charged on their own purchases (input VAT) from the VAT they collect on sales (output VAT).

If you want to charge VAT to some customers in your Shopify store but not others, you have two options, depending on how you would like to display product prices.

If you're selling primarily to consumers (B2C), you may prefer to display product prices as including VAT.

To display your product prices with VAT included while still letting business customers have VAT deducted at checkout:

1. In your Shopify admin, go to the Settings → Taxes and duties page.
2. In the Global settings section, check the Include sales tax in product price and shipping rate checkbox.
3. Click Save to apply the changes.

Optionally, you can enable dynamic tax inclusion. This Shopify feature automatically includes or excludes tax based on the customer's region and adjusts the tax rate accordingly.

To activate dynamic tax inclusion:

1. In your Shopify admin, go to Settings → Markets and click the market you want to set up tax collection for.
2. Click Duties and taxes, and in the Storefront and checkout pricing field, click Edit.
3. In the Domestic taxes field, select Dynamic taxes. Click Done.
4. Click Save to apply the changes.

If your customers are mostly businesses (B2B), you can choose to display your product prices as excluding VAT.

To display your product prices excluding VAT:

1. In your Shopify admin, go to the Settings → Taxes and duties page.
2. In the Global settings section, uncheck the Include sales tax in product price and shipping rate checkbox.
3. Click Save to apply the changes.

Optionally, disable dynamic tax inclusion:

1. In your Shopify admin, go to Settings → Markets and click the market you want to set up tax collection for.
2. Click Duties and taxes, and in the Storefront and checkout pricing field, click Edit.
3. In the Domestic taxes field, select Don't add taxes. Click Done.
4. Click Save to apply the changes.

The standard VAT rate in Finland is 25.5%. This rate applies by default, unless the goods qualify for the reduced rate of 13.5%, the super-reduced rate of 10%, or the zero rate.

Some business operations are exempt from VAT altogether.

The 13.5% rate—reduced from 14% on January 1, 2026—applies to food, groceries, and restaurant and catering services (excluding alcohol and tobacco), as well as books, pharmaceutical products, passenger transport, accommodation, physical exercise and cultural services, and sanitary products and baby diapers.

The 10% rate now applies only to newspapers and periodicals. Note that sweets and chocolate have moved from the reduced rate to the standard 25.5% rate.

If you're selling goods to customers in Finland—whether businesses (B2B) or consumers (B2C)—you must charge Finnish VAT.

If your business isn't VAT-registered, you don't charge VAT. You also can't include VAT on invoices until your business is registered.

Most businesses start out unregistered. As of January 1, 2025, registration is required once your business's taxable turnover exceeds €20,000, calculated on a calendar-year basis and taking into account both the current and previous year.

You can also register voluntarily at any time, even if you remain below the threshold.

This can be worthwhile if you want to reclaim input VAT on purchases or if your customers expect VAT invoices.

If your business is based in Finland and is VAT-registered, you charge VAT to some customers and not others, depending on where they're located.

If you're selling goods B2B to other EU Member States, these sales are zero-rated for VAT.

This means you still list VAT on your invoices, but at a 0% rate—under the reverse-charge mechanism, the customer accounts for the VAT.

If you're selling goods B2C to other EU Member States, you do charge VAT. The rate depends on whether you exceed the €10,000 distance-selling threshold.

If your taxable turnover outside your home country but still within the EU doesn't exceed €10,000 (excluding VAT) during a calendar year, you charge the VAT rate of the country your business is based in.

Once approved, set up your tax settings in Shopify admin—this only needs to be done once.

To set VAT rates for orders under the €10,000 threshold and charge your home country's VAT rate on all orders:

1. In your Shopify admin, go to Settings → Taxes and duties.
2. In the Regional settings section, click European Union.
3. In the Collect VAT cross-border section, click Collect VAT.
4. In the Collect across the EU window, select Collect using your home country registration.
5. Select your Country of registration and enter your VAT number. Leave this field blank if you've applied for a VAT number but haven't received it yet—you can update it later.
6. Click Collect VAT to save your changes.

If the total value of your sales to any EU Member State exceeds €10,000 (excluding VAT) during a calendar year, you charge the VAT rate of the country you're shipping to.

This means you'll charge different VAT rates to customers in different EU countries, ranging from 17% to 27%.

Once you exceed the threshold, registering for VAT in each EU Member State you sell to can quickly become time-consuming.

In this case, you can use the One Stop Shop (OSS) scheme instead; it still lets you charge VAT at the rate of the country you're selling to, but you only need to file a single OSS VAT return.

Shopify lets you set these tax settings for individual VAT registrations so it can automatically charge the correct VAT to your EU customers.

To set VAT rates for the OSS scheme and charge your customers' shipping country VAT rate on all orders:

1. In your Shopify admin, go to the Settings → Taxes and duties page.
2. In the Regional settings section, click European Union.
3. In the Collect VAT cross-border section, click Collect VAT.
4. In the Collect across the EU window, select Collect using a One Stop Shop (OSS) registration.
5. Select your Country of OSS registration and enter your VAT number. Leave this field blank if you've applied for a VAT number but don't have one yet—you can update it later once you receive it.
6. Save your changes by clicking Collect VAT.

Now your customers' shipping country VAT rate will automatically apply to all EU sales.

Some businesses maintain a separate VAT registration for each EU country they ship to.

If that's your situation, you can add a local VAT registration number for a different country in Shopify.

This lets you charge the correct VAT rate—Shopify will automatically apply VAT rates based on your registration.

To add a local VAT registration number:

1. In your Shopify admin, go to the Settings → Taxes and duties page.
2. In the Regional settings section, click European Union.
3. In the Collect VAT in an EU country section, click Collect in another location.
4. Select the Registration country and enter your VAT number. Leave this field blank if you've applied for a VAT number but don't have one yet; you can update it later once you receive it.
5. Save your changes by clicking Collect VAT.
6. To add a local VAT registration number for every country you're registered in, click Collect VAT in an EU country again and confirm by clicking Collect VAT.

If you can't select the additional country you're VAT-registered in, you may need to create a shipping zone first.

To create a shipping zone:

1. In your Shopify admin, go to the Settings → Shipping and delivery page.
2. In the Shipping section, click the shipping profile you want to add shipping zones to.
3. In the Shipping zones section, click Add shipping zone.
4. Enter a name for the shipping zone, add the country (or countries) you're VAT-registered in using the search bar, and click Done when finished.
5. Add shipping rates to make this zone available.
6. Click Save to apply the changes.

If you're selling goods from Finland outside the EU—whether B2B or B2C—these sales are exempt from VAT. This means you don't charge VAT on your invoices.

For advice tailored to your specific business situation, consider consulting a tax professional or accountant who specializes in VAT and ecommerce.

Once you've finished setting up your tax rates, Sufio automatically creates and sends invoices, credit notes, and other documents, including an exact breakdown of the VAT charged.

The app will create documents in multiple languages and include all the information to make them compliant with invoicing legislation in the EU and other key markets, like the UK and the US.