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From the start of 2025, the VAT liability threshold — i.e. the threshold for minor business activity — rose from €15,000 to €20,000, and the gradual lower-limit relief was abolished entirely. To remain exempt from VAT, your turnover for both the current and the previous calendar year must be no more than €20,000.

#What does this mean for you?

As a sole proprietor: if your turnover stays at or below €20,000 in both years, you can operate without VAT registration. If you exceed the threshold, you must register and remit VAT, but you can no longer claim the relief, so it pays to know the threshold precisely. Voluntary registration is still possible, and it can be worthwhile if your purchases include a lot of deductible VAT.

As a light entrepreneur: you don't need to worry about this threshold, since you invoice without your own Business ID (Y-tunnus) and Truster handles the VAT on your invoices and remits it on your behalf. The threshold only becomes relevant to you if you switch to being a sole proprietor. You can find up-to-date information on the Finnish Tax Administration's website, vero.fi.