The value added tax and insurance premium tax rate will rise as of 1 September 2024

An amendment to the Value Added Tax Act approved by the Finnish Parliament on 28 June 2024 will enter into force on 1 September 2024. This means that the general VAT rate will therefore rise from 24 per cent to 25.5 per cent on 1 September 2024. The majority of banking services are exempt from value added tax, so this increase will only apply to certain banking services. The change to the insurance premium tax rate will affect the insurance policies of both personal and corporate customers.

Banking services for corporate customers

As the value added tax rate changes, the value added tax of banking services for some companies will rise on 1 September 2024. The change applies to all corporate banking services that are subject to value added tax, such as sending and receiving e-invoices, service packages for saving and investing and custody fees, asset and wealth management fees charged directly to the customer, leasing services, additional hire purchase services, factoring service fees as well as the services offered by cash service counting services. Naturally, the amendment will also impact the contract prices of all financed assets subject to value added tax.

An increased value added tax will affect services fees as of 1 September 2024. The change will not require any action by our customers.

Banking services for private customers

For the majority of personal customers, banking services will remain the same. We will contact our personal customers whose products or services will be impacted by the increased value added tax.

Insurance services

With the amendment to the Value Added Tax Act, the insurance premium tax will also increase from 24 per cent to 25.5 per cent from 1 September 2024. The increase applies to all insured property, motor insurance policies and activities of personal and corporate customers in Finland with an insurance period that starts on 1 September 2024 or later. The increase does not apply to personal insurance.

The insurance premium tax for existing insurance policies will be updated to 25.5 per cent when the new insurance period changes.