Raising the VAT liability threshold
Act amending sections 3 and 149 a of the Value Added Tax Act
The threshold for small businesses' value added tax (VAT) liability will rise from 10,000 euros to 15,000 euros. More small operators than before will not need to register for VAT or pay VAT.
- Status
- Passed
- Submitted
- 5 Oct 2020
- Latest event
- 27 Nov 2020
- Votes
- 2
- Speeches
- 8
- Confirmed
- 11 Dec 2020
- Statute
- 961/2020
- Source
- eduskunta.fi ↗
What is proposed
The threshold for VAT liability based on financial year turnover will be raised from 10,000 euros to 15,000 euros, and at the same time the calculation rule for threshold relief will be adjusted to match the new threshold.
What it means
The change will ease the administrative burden and taxation of small entrepreneurs for financial years beginning on or after 1 January 2021. The impact will affect an estimated thousands of small operators – especially service sector entrepreneurs selling to consumers, such as barbers, hairdressers and the beauty care sector – and it will reduce central government tax revenue by approximately 20 million euros a year.
How Parliament voted
The act ultimately passed without a vote: no MP proposed rejecting it in the final reading. The votes concerned details of the act.
149 a §, mietintö / Sari Essayah
Yes won by 32–17.
Government yes, opposition no. 4 abstained, 146 were absent. Minutes ↗
Filled dot = yes, ring = no, grey = absent. The seating plan at the time of this vote is not archived, so MPs are grouped by party in indicative seats.
A passed act does not enter into force immediately: the President of the Republic confirms it, and it enters into force on the date set in the act. This act was confirmed on 11 Dec 2020.
Debate in the chamber
What was argued and where each group stood, followed by MPs' speeches verbatim from the parliamentary record. Speeches are shown in their original language.
8 speeches · 7 speakers · 1 debate
Key points of the debate
The debate addressed raising the threshold for VAT liability for small businesses from 10,000 euros to 15,000 euros. All parliamentary groups considered the change good and necessary to ease the administrative burden on small businesses. The main disagreement concerned whether the threshold should have been raised more right away.
- Should the threshold for VAT liability have been raised to at least 20,000 euros instead of 15,000 euros?
- Social DemocratsIn favour
The proposal eases the administrative burden and taxation of small businesses and supports employment, especially in the service sectors.
”Tässähän on kysymys arvonlisäveron alarajan nostosta 10 000:sta 15 000 euroon, jota siis valiokunta luonnollisesti puoltaa, että näin toimisimme.”
— Pia Viitanen - Centre PartyIn favour
Raising the threshold by 50 per cent significantly helps solo entrepreneurs selling directly to consumers in particular.
”Tämä hallitusneuvotteluissa sovittu arvonlisäveron alarajan korotus 10 000:sta 15 000 euroon on erittäin tervetullut”
— Esko Kiviranta - Swedish People's PartyIn favour
The change improves operating conditions for small businesses and micro-entrepreneurs and can be raised further later if necessary.
”Tämä on hyvä esitys, ja varmaan jatkossa voi pohtia myös vielä tämän rajan hinaamista tästä ylöspäin.”
— Joakim Strand - National Coalition PartyIn favour
The proposal is a gesture in the right direction towards entrepreneurs, but the lower threshold could have been raised even higher in one go.
”Tämä esitys on hyvä askel eteenpäin.”
— Timo Heinonen - Christian DemocratsIn favour with reservations
Raising the lower threshold for VAT is right, but Finland should raise the threshold immediately to at least 20,000 euros and bring the level closer to other EU countries.
”Kristillisdemokraatit esittävät, että me tekisimme tässä yhteydessä tuon korotuksen 20 000 euroon”
— Sari Essayah
This digest was generated by AI from 8 speeches 13 Sep 2026. Group positions are read from the speeches, not from votes; quotations were checked verbatim against the record.
Yleiskeskustelu päättyi ja asian käsittely keskeytettiin.
Stages of consideration
The bill's path from the preliminary debate to the decision, as recorded by Parliament.
- 5 Oct 2020Eduskuntakäsittelyn vireilletulo · Valtiovarainministeriö
- 7 Oct 2020Lähetekeskustelu · Täysistunto
- 13 Nov 2020Valiokunnan mietintö tai lausunto · valtiovarainvaliokunta
- 20 Nov 2020Ensimmäinen käsittely · Täysistunto
- 24 Nov 2020Toinen käsittely · Täysistunto
- 26 Nov 2020Eduskunnan vastaus ja kirjelmä
Decisions by law proposal1
- 1Laki arvonlisäverolain 3 ja 149 a §:n muuttamisestaHyväksytty · 961/2020 · 11 Dec 2020
Proposed law text
The law proposals in the bill as the Government presented them. The final act may differ after committee consideration.
The law text is shown in Finnish or Swedish from Parliament's official documents; it is not translated into English.
Laki arvonlisäverolain 3 ja 149 a §:n muuttamisesta
Eduskunnan päätöksen mukaisesti muutetaan arvonlisäverolain (1501/1993) 3 §:n 1 momentti sekä 149 a §:n 1 ja 2 momentti, sellaisina kuin ne ovat, 3 § ja 149 a §:n 1 momentti laissa 515/2015 sekä 149 a §:n 2 momentti laissa 773/2016, seuraavasti:
3 §
Myyjä ei ole verovelvollinen, jos tilikauden liikevaihto on enintään 15 000 euroa, ellei häntä ole oman ilmoituksensa perusteella merkitty verovelvolliseksi.
149 a §
Verovelvollinen, jonka tilikauden liikevaihto (kaavassa liikevaihto) ylittää 15 000 euroa, saa tilikaudelta tilitettävästä verosta (kaavassa vero) huojennuksen, jonka suuruus määräytyy seuraavasti:
Verovelvollinen, jonka tilikauden liikevaihto on enintään 15 000 euroa, saa huojennuksena koko tilikaudelta tilitettävän veron.
§
Tämä laki tulee voimaan päivänä kuuta 20 .
Lakia sovelletaan lain voimaantulopäivänä tai sen jälkeen alkavaan tilikauteen. Ennen lain voimaantuloa alkaneeseen tilikauteen sovelletaan lain voimaan tullessa voimassa olleita säännöksiä.
Main content of the bill (official)
The summary and title were produced with AI on 2 Sep 2026. They are not official documents – check the details in the original bill. The title and summaries are machine translations of the Finnish AI summaries. Speeches and quotations are always shown in their original language.