Upcoming Tax Rate Changes in Estonia and Finland (Effective January 1, 2025)

Estonia: Key Changes

• Accommodation Services: VAT rate increases from 9% to 13%.
• Printed and Electronic Publications: VAT rate increases from 5% to 9%.

Transitional Rules

For invoices issued and services provided before January 1, 2025, the previous VAT rates (9% for accommodation and 5% for publications) may still apply.

How to Update VAT in Erply

1. Access VAT settings via the “Sales” section.
2. Add a new VAT rate and apply changes to products using the PIM system’s bulk update tool.
3. For questions, contact support at abi@erply.com.

Finland: Key Changes

• VAT Rate Increase: Many goods and services move from a 10% to a 14% VAT rate, including:
  • Books and e-books
  • Medicines
  • Sports and cultural event tickets
  • Public transportation
  • Accommodation services
• Hygiene Products: VAT on hygiene products (e.g., menstrual products, diapers) reduces from 24% to 14%.

Transitional Rules

VAT rate is based on the delivery date for goods and the performance date for services. Advance payments made before January 1, 2025, can still apply the current 10% VAT rate.

Potential Future Change

VAT on sweets and chocolates may increase from 14% to 24% in June 2025.

How Businesses Can Prepare

• Update pricing and invoicing systems.
• Ensure POS and ERP systems reflect new VAT rates.
• Monitor delivery and service dates for compliance.

Preparation in Erply

Both Estonian and Finnish businesses can use Erply’s tools to:

• Update VAT rates systematically.
• Ensure compliance with new legislation.
• Access support and resources through wiki.erply.com or customer service.

Stay informed and consult your accountant to manage these changes effectively!