Domestic passenger transport is temporarily exempt from VAT in Finland

Finland provides temporary VAT Exemption for passenger transport. This would require some new settings for coding in TEM.

In this article, there are step-by-step instructions how to make the temporary VAT work for the expenses in scope.

Note 1: After these settings are made, TEM will automatically handle all changes depending on the date given for any expense.
Note 2: This article covers only the simple, native TEM automatic coding, if there are dimension based internal categories in use for accounts used etc. or if the accounting does not use TEM native coding logic, this article may be insufficient for your requirements, and we recommend you contact our Service Desk in order to order a consultant work.



All our TEM installations do not necessary use same coding ids, so you may need to write some notes to yourself to make these instructions map with the codes that are actually in use.

  1. Create a coding rule category
    Basic data – accounts – coding rule categories

  2. Create 3 coding rules to Coding rule category 358VATD
    1) 3589110 for period before VAT change
    2) 3589210 for period during the reduction
    3) 3589310 for period after the reduction

     Basic data – accounts – coding rules


  1. At this point you must track which tax base categories are actively in use for 10% and 0%. In this example, the tax base category is 358VATB. (Finland – 358, “B” to represent the first reduced VAT in year 1998):
    Check which coding rule is set, on the current date, on the expenses in scope. In this example the coding rule is 35808 (Finland – 358, [0]8 as a lower VAT base started in year 1998)

     Basic data – Expenses – Expenses


 Current entry, example

 New entry

  1. Create 9 coding rule rows

     Basic data – accounts – coding rule rows

    3 rows for coding rule for expense entry (row 1) – this row defines the tax base category for each period – all other settings as are currently.


  • 3 rows for VAT entries (row - VAT entry for 0 VAT is not active) -all settings except the coding rule row exactly the same as in current settings

  • and finally, 3 rows for offset entries (row 3), similar settings as well









Now all the needed settings are ready. Finally

  1. Choose the new coding rule category for the expense types in question.


 current entry, example

 new entry


 Coding rule category

 Coding rule

 Tax base

 358VATB, Finland VAT 10%

 35808 (1.1.1998)

 358VATB, Finland VAT 10%

 358VATD, Finland 10/0/10%

 3589110 (1.1.1998)

 358VATB, Finland VAT 10%

 3589210 (1.1.2023)

 0, 0% Tax base

 3589310 (1.5.2023)

 358VATB, Finland VAT 10%