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 October 26, 2026.

In this article:

• What is VAT?
• Tax settings
  • Display product prices including VAT
  • Display product prices excluding VAT
• 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
  • Selling with a 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 generally isn't a cost to a VAT-registered business. If you're VAT-registered, you're required to charge VAT on your taxable sales, to both consumers and businesses, and remit it to the Finnish Tax Administration.

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 usually deduct the VAT they were charged on their business purchases (input VAT) from the VAT they collect on sales (output VAT).

Businesses that aren't VAT-registered can't deduct input VAT, so for them VAT on purchases is a cost.

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 to consumers (B2C), display your product prices with VAT included. Finnish consumer protection law requires prices shown to consumers to include VAT.

To display your product prices with VAT included:

1. In your Shopify admin, go to the Settings → Taxes and duties page.
2. In the Additional configuration section, turn on Include sales tax in product price and shipping rate.
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.

Tax display is set for each market. To activate dynamic tax inclusion:

1. In your Shopify admin, go to the Markets page and click the market you want to configure.
2. In the Inherited section, click the + icon next to Taxes and duties.
3. Under Tax display, select Dynamic tax display, then click Done.
4. Click Save to apply the changes.

If your customers are only 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 Additional configuration section, turn off Include sales tax in product price and shipping rate.
3. Click Save to apply the changes.

To disable dynamic tax inclusion in a market and show VAT as a separate line at checkout:

1. In your Shopify admin, go to the Markets page and click the market you want to configure.
2. In the Inherited section, click the + icon next to Taxes and duties.
3. Under Tax display, select Show as line item, then 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 second 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 applies to newspapers and periodicals, in print and electronic form.

Public broadcasting services also used to be taxed at the 10% rate, but since January 1, 2026, they fall under the reduced rate of 13.5%.

If you're VAT-registered and 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.

If you exceed the threshold during the year, you must register for VAT, and VAT liability starts on the day the threshold is exceeded. The sale that takes you over the threshold is subject to VAT in full.

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 Finnish VAT on all sales of goods to customers in Finland.

For sales to customers in other countries, the rules depend on where your customer is located.

If you're selling goods B2B to other EU Member States, these sales are zero-rated for VAT, as long as your customer has a valid EU VAT number and the goods are shipped to another EU country.

This means you still list VAT on your invoices, but at a 0% rate—the customer accounts for the VAT in their own country. You must also report these sales to the Finnish Tax Administration in your EC Sales List.

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 cross-border B2C sales to other EU countries (distance sales of goods plus telecommunications, broadcasting, and electronic services) don't exceed €10,000 (excluding VAT) in both the current and the previous calendar year, you can charge Finnish VAT on those sales.

This rule only applies if your business is established only in Finland and your goods are shipped from Finland.

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

No approval is needed. 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 EU B2C orders:

1. In your Shopify admin, go to the Settings → Taxes and duties page.
2. In the Tax regions 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 don't have one yet. You can update it later.
6. Click Collect VAT to save your changes.

If your combined cross-border B2C sales to all other EU Member States exceed €10,000 (excluding VAT) in the current or the previous 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) Union 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 in Finland for your EU B2C sales.

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 EU B2C orders:

1. In your Shopify admin, go to the Settings → Taxes and duties page.
2. In the Tax regions 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.
6. Click Collect VAT to save your changes.

Now your customers' shipping country VAT rate will automatically apply to all EU B2C sales.

You need a local VAT registration in another EU country if you make taxable sales there that OSS doesn't cover, for example, if you store stock in that country and ship to customers from there.

In that case, you can no longer use the €10,000 threshold.

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 Tax regions section, click European Union.
3. In the Collect VAT in an EU country section, click Collect VAT (or Collect in another location if you already have a registration).
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.
5. Click Collect VAT to save your changes.

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 profiles section, click the profile you want to add the zone to (for example, General profile).
3. In the Shipping zones section, click + Zone.
4. Name the zone, add the country (or countries) you're VAT-registered in using the search bar, and click Done.
5. Add shipping rates to make the 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 zero-rated for VAT in Finland.

This means you don't charge Finnish VAT on your invoices, as long as you keep proof that the goods left the EU. Your customer's country may charge its own import VAT and duties.

For official guidance, see the Finnish Tax Administration (vero.fi) website.

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.