Finnish accounting FAQs

Freelancers and small business owners

Everything you need to know about setting up your business identity, choosing the right legal structure, and mandatory pensions in Finland without stress.

Should I choose a Toiminimi or an Oy?

How do I start a business in Finland?

Do I need an accountant from day one?

A Toiminimi is often suitable when your business is primarily based on your own expertise and work. It is a popular choice among freelancers, consultants, coaches, designers, tradespeople, and many other self-employed professionals. One of the biggest benefits of an Oy is that the company is considered a separate legal entity. This creates a clearer distinction between the business and the entrepreneur. Accounting services for an Oy are usually more expensive than for a Toiminimi.

Please read more on topic from our blog post.

For most small businesses and freelancers, the choice is typically between Toiminimi (sole proprietor) and an Oy (limited liability company). Once you've chosen a business structure, you'll need to complete the registration process. A company can be, for example, established electronically via YTJ.fi.
Understand VAT registration requirements and arrange accounting from day one.

Please read more on topic from our blog post.

You may already know how complex it can be to keep up with bookkeeping, VAT, payroll, and communication with the Finnish Tax Administration (Vero). The right accounting firm will not only handle these tasks but also make sure your business is set up to save time and avoid unnecessary stress. Things to consider when choosing an accounting partner, among other, are: what accounting software does the accounting company they use; do they handle alternative banking and EMI providers; Will they handle communication with the Tax Administration etc. Please read more on topic from our blog post.

Taxation and compliance

VAT and deadlines

Demystifying Finnish value added tax, eligible operational equipment write-offs, and periodic MyTax filing obligations for English-speaking entrepreneurs.

When do I need to register for VAT in Finland?

What is the VAT rate in Finland?

How often must VAT be reported?

Since the Finnish VAT rules changed in 2025, many businesses are still following outdated guidance. Since 1 January 2025, a business is generally exempt from VAT registration if its turnover in the current calendar year does not exceed €20,000, and its turnover in the previous calendar year also did not exceed €20,000, and the business has not voluntarily registered for VAT. This is a significant change from the previous Finnish rules and is one of the most important tax updates affecting small businesses and freelancers.

Please read more on topic from our blog post.

The general VAT rate is 25.5%. This rate is applied on most goods and services.
The reduced VAT rate is 13,5% and it applies to groceries, restaurant services (meals consumed at seller’s business premises), books (printed and electronic) and other. Reduced VAT rate 10% applies to newspapers and magazines (print and electronic publications). Zero rate 0%, among other, is exports outside the EU, sales of goods within the EU to VAT-liable buyers (guidance on VAT in EU trade). There are also activities that fall completely outside the VAT scope.

Please read more on topic from our blog post.

VAT reports are submitted monthly, quarterly or annually based on business revenue tiers, accompanied by annual income declarations filed through MyTax in full compliance with Finnish accounting standards. If the VAT return is filed late, the Tax Administration may impose a late filing fee on the company. If even there was no VAT activity whatsoever, a VAT return must still be filed if registered for VAT.

Questions about Finnish taxes?

Book an introductory consultation with the Accelta team. We review your business model in plain English and handle all MyTax filings smoothly.