On September 1st, 2024, the default value-added tax (VAT) rate in Finland will change from 24% to 25.5%.
To all our Finnish customers: we ask you to state your preference how the prices on your account (in the product catalog and in price lists) should be automatically updated.
How do I set my preference for updating prices?
To set your preference, please open Erply back office and go to PIM -> “Additional links” -> “VAT change in Finland 1.9.2024”.
Make your choice and click the button:
“I want my data to be automatically updated on 1.9.2024”
You can choose whether to keep the net prices unchanged—or to keep the prices with VAT unchanged. Here is a sample comparison:
| Net price | VAT rate | Price with VAT | |
|---|---|---|---|
| Product price right now | 10,00 € | 24% | 12,40 € |
| Option 1: net price remains unchanged | 10,00 € | 25,5% | Will change to 12,55 € |
| Option 2: price with VAT remains unchanged | Will change to 9.8805 € | 25,5% | 12,40 € |
If you choose to keep prices with VAT unchanged, you will also have the option to select which price lists should likewise be updated. Select all retail price lists that you actively use. If you do not select any price lists, Erply will only update the price on the prduct card.
What data will be updated?
We are going to update your account on September 1st, between 00:00 and 08:00.
Erply will create a new 25.5% tax rate (if it does not exist yet), and change the following entries from a 24% tax rate to 25.5%:
- Products and services
- Cash register default VAT
- Gift cards
- Suppliers
Entries with other tax rates (e.g., 0%, 10% or 14%) will not be affected by this change.
Previous sales and purchases will not be affected by the change.
Which tax rate to use for invoicing customers?
The Finnish tax authority has explained the most common scenarios on their website: https://vero.fi/yritykset-ja-yhteisot/verot-ja-maksut/arvonlisaverotus/arvonlisaveroprosentit/Yleinen-arvonlisaverokanta-nousee-syyskuussa/
In short, the VAT rate depends on when the goods are delivered, or when a payment is made—whichever occurs first:
- If goods are delivered in August or earlier, the customer must be charged 24% VAT.
- If the invoice is for services performed in August or earlier, the customer must be charged 24% VAT.
- If the customer makes a prepayment in August, the final invoice must have 24% VAT.
Creating invoices from sales orders
In the beginning of September, please review all unfulfilled sales orders. Erply will not change any of these orders automatically.
- If the order has been paid, it can remain as 24% VAT.
- If the order has not been paid and goods have not been delivered yet, you need to change it to 25,5% VAT.
Credit invoices
When crediting an invoice made in August or earlier, the credit invoice can have 24% VAT.
Copying invoices
Copying an invoice made in August or earlier keeps the old (24%) VAT; therefore please make sure to change it manually to 25,5% if necessary.
Recurring billing statements
If you issue monthly invoices based on billing statements, the law allows invoices for services provided in August and earlier to be issued with a 24% VAT rate. Therefore, Erply does not automatically update billing statements right away on the 1st of September.
Please issue all invoices for August, then go to the application mentioned above (PIM -> Additional links -> Request a VAT change (FI 2024)) and click a button to update recurring billings from 24% to 25,5%.