The Finnish government has decided to increase the VAT rates in two phases.

1) The general VAT rate changes from 24% to 25.5% effective 1.9.2024
2) The lower VAT rate changes from 10% to 14% effective 1.1.2025 (Tax Administration article)

Changes affect each customer who has a Finnish VAT ID.

Below you can find information how we approach the required changes and what action will be required on your end to ensure proper invoice processing.

What does Basware do to address this change?

Basware has created a set of materials for you to understand the implications of the change to your solutions and guide you to manage the changes. In addition, you may request Basware Delivery Consulting to assist you with these changes.

What does this mean for the use of your Basware solution?

You will need to take action to ensure your company's compliance according to the new VAT rates.

In which cases do you need to take action and how?

All the companies who have a Finnish VAT ID are required to comply to the new rates. Basware creates product specific guidance on how to manage the change in Basware products. Find the product specific guides below.

Additional information for the different products:

• Basware AP Automation
  • The general VAT rate changes from 24% to 25.5% effective 1.9.2024:
    • Update your coding templates, tax codes. Please note that the way of updating the tax rates is dependent on your existing configurations, if you have a master data interface, the tax rates may be updated automatically when you apply the change to your ERP.
    • How-to-guide: Basware AP Automation solution VAT Change (BWKB0019449)
  • The lower VAT rate changes from 10% to 14% effective 1.1.2025:
    • There is no new tax code, but some goods and services change to a different, already existing tax code. Check correct tax code usage in templates and documents.
    • How-to-guide: Basware AP Automation solution VAT Change (BWKB0019449)
• Basware Travel & Expense Management
  • The general VAT rate changes from 24% to 25.5% effective 1.9.2024:
    • Update the VAT Base and the respective connected Basic Data information.
    • How-to-guide: Travel & Expense Management solution VAT Change (BWKB0019451)
  • The lower VAT rate changes from 10% to 14% effective 1.1.2025:
    • Update the VAT Base and the respective connected Basic Data information.
    • How-to-guide: Finland VAT Change 1.1.2025 (BWKB0019637)
• Basware Invoice Ready
  • The general VAT rate changes from 24% to 25.5% effective 1.9.2024:
    • In cases where an entire tax bracket is changed and an existing tax code needs to be wholly replaced or modified:
    • Create the replacing tax code and ensure that the appropriate tax codes are set up with suitable periods of validity and replacing tax code.
    • How-to-guide: InvoiceReady solution VAT Change (BWKB0019469)
  • The lower VAT rate changes from 10% to 14% effective 1.1.2025:
    • In cases where only some uses of a tax code are changed but the existing tax code remains in general use, it is recommended to verify that tax codes are up to date in:
      • Supplier posting rules that are based on product codes or product descriptions as well as all default posting rules
      • Requisitions / Purchase Orders
      • Contracts which generate automatic posting
  • During transition period from one tax percentage to another, it is advisable to apply additional checks on posting to ensure the appropriate tax code and percentage is applied.
• Basware PDF e-invoice
  • The available data on the invoice will be extracted. The sender is responsible to ensure that the correct VAT rates are used in the invoice.
  • In case the invoice was sent with a wrong VAT rate and this invoice will be sent again please reach out to the Basware support and request to push the invoice forward to the receiver otherwise the invoice will be rejected due to the activated duplicate check.
• Basware Scan & Capture
  • The available data on the invoice will be extracted. The sender is responsible to ensure that the correct VAT rates are used in the invoice.
• Basware e-invoices
  • The available data on the invoice will be extracted. The sender is responsible to ensure that the correct VAT rates are used in the invoice.
  • In case the invoice was sent with a wrong VAT rate and this invoice will be sent again please reach out to the Basware support and request to push the invoice forward to the receiver otherwise the invoice will be rejected due to the activated duplicate check.
• Basware Portal, key-in invoices
  • The sender creating the invoice in the Basware Portal via the key-in functionality is responsible for the correct VAT rates.