Return to former VAT rate for power supplies
VAT rates associated with power and gas supplies have sharply come into focus- in an era where energy prices are rising, and especially during the winter months when reliance on these elements increases. Several countries across the content have adjusted VAT rates to accommodate rising inflation. As inflation subsides, it is inevitable that countries will turn their attention to restoring previous VAT rates- which is unsurprising, as the summer months lead to less energy reliance. This also mirrors the discernible trend of countries effecting pre-covid tax rates. Finland will now restore the standard rate of 24% on electricity from 1 May 2023. This will reverse the temporary 10% rate applied to electricity from 1 December 2023. This rate was temporarily introduced in December 2022. Finland is a compliant territory for Tungsten Network and our e-invoicing solution supports all valid VAT rates in the country.