The VAT rate will be reduced at the beginning of 2026: from 14% to 13.5%

VAT rate decreases at the beginning of 2026: 14% → 13.5% 

The change applies to groceries, food, restaurant and catering services, feed materials, passenger transport, accommodation services, guest harbour services, medicines, as well as menstrual products, incontinence products, and children's diapers.

Read about it more here:

• vero.fi
• Yrittäjät.fi

What you need to do in Erply:

Erply has a separate application that allows you to perform a mass update of the VAT rate. With the app, you can schedule the VAT change to take place on a specific date.

Downloading the app:
The app can be downloaded from our app store here: 

Specify the following information:

1. Current VAT rate
2. New VAT rate
3. Date of change

Choose which price remains unchanged: net price or price including VAT

If the price including VAT remains the same: additionally select which price lists Erply will update.

Erply will automatically update the VAT rate in:

• Products and services
• POS systems
• Gift cards
• Suppliers

Note! Previous sales and purchase transactions will not be modified.

Updating VAT in recurring invoicing

Erply does not automatically update the VAT rate for recurring invoices.

Proceed as follows:

1. First create the invoices for the previous period using the old VAT rate.
2. Once this is done, update all recurring invoicing rules in bulk using the application:

• Select the old VAT rate
• Enter the new VAT rate as a number (e.g., 10 or 24)
• Choose which price remains unchanged

Which products and services are affected?

The reduced VAT rate applies to a wide range of everyday products and services. The change affects the following:

• Foodstuffs
• Restaurant and catering services
• Feed materials
• Passenger transport services
• Accommodation services
• Guest harbour services
• Medicines
• Menstrual and incontinence products
• Children’s diapers

How should companies prepare for the change?

Companies must update their pricing and accounting systems before the end of the year. The correct VAT rate is determined by the delivery date of the goods or the completion date of the service. For advance payments, the decisive factor is the date of payment.

In practice, this means:

Goods delivered or services performed on 31 December 2025 or earlier are subject to the 14% rate

Goods delivered or services performed on or after 1 January 2026 are subject to the 13.5% rate

Why is the VAT rate being reduced?

The reduction of the reduced VAT rate is part of the government’s efforts to ease consumers’ cost of living and support purchasing power. The change particularly affects essential goods and services, whose prices have a significant impact on household budgets.

Summary

The reduction of the reduced VAT rate to 13.5% is a significant change affecting both consumers and businesses. Although each individual price reduction may seem small, the change will bring long-term savings, especially for food and other essential goods. It is important for businesses to prepare early and ensure their systems are ready before the turn of the year.