Finland Adopts First ViDA VAT Changes:What Will Change for Retailers From January 2027?

Finland has adopted its first VAT in the Digital Age (ViDA) amendments, effective January 1, 2027. The changes extend the OSS scheme to cross-border B2C energy supplies and clarify platform-related VAT rules. Broader e-invoicing and digital reporting reforms will follow in 2028–2030.

Finland has adopted the first legislative amendments implementing the European Union's VAT in the Digital Age (ViDA) reform, marking an important step toward simplifying VAT compliance for businesses conducting cross-border transactions.

On June 26, 2026, Finland enacted Law 597/2026, amending the Finnish VAT Act (1501/1993). The legislation implements the initial provisions of Council Directive (EU) 2025/516 and will enter into force on January 1, 2027.

The amendments follow Government Proposal HE 78/2026, which specifically addresses the changes that EU Member States must implement during the first phase of ViDA.

The main development is an expansion of the Union One Stop Shop (OSS) scheme, allowing eligible businesses to declare and pay VAT on certain cross-border business-to-consumer (B2C) supplies of electricity, natural gas, heating, and cooling through a centralized VAT reporting mechanism.

The legislation also introduces adjustments concerning electronic interfaces, deemed suppliers, the place of supply, and special VAT arrangements, including transactions involving the Åland Islands.

However, the legislation does not introduce mandatory electronic invoicing or real-time digital VAT reporting for Finnish retailers from January 2027. These broader reforms remain part of later ViDA implementation stages.

ViDA is an EU-wide initiative designed to modernize VAT administration, simplify cross-border compliance, and reduce opportunities for VAT fraud.

The reform was adopted by the Council of the European Union on March 11, 2025, and published in the Official Journal on March 25, 2025.

It introduces changes across three principal areas: digital VAT reporting and electronic invoicing, VAT treatment of platform economy transactions, and Single VAT Registration.

The Single VAT Registration initiative aims to reduce situations in which businesses must register for VAT separately in several EU Member States.

Instead, eligible businesses will be able to use expanded special VAT schemes and centralized reporting arrangements to fulfill certain cross-border obligations.

The reform is being implemented progressively, with important milestones in 2027, 2028, 2030, and 2035.

Finland's Law 597/2026 addresses the first implementation stage rather than the full ViDA package.

The most significant immediate change concerns the extension of the Union OSS scheme.

Until now, the scheme has primarily covered eligible cross-border distance sales of goods, certain domestic supplies facilitated by electronic interfaces, and B2C services supplied to customers in other EU Member States.

From January 1, 2027, the scheme will also cover eligible supplies of:

Electricity.
Natural gas supplied through natural gas networks or connected systems.
Heating energy supplied through heating networks.
Cooling energy supplied through cooling networks.
This means that a qualifying business supplying these products to consumers in another Member State may declare and pay the applicable VAT through the OSS scheme rather than registering separately in each country solely for those covered transactions.

The relevant changes are reflected particularly in Section 133 k of the Finnish VAT Act, as amended by Law 597/2026.

The new rules apply when the VAT liability arises on or after January 1, 2027. Transactions for which the liability arose before that date remain subject to the previous provisions.

The extension does not mean that every electricity or gas sale automatically qualifies for OSS. Businesses must assess the applicable place-of-supply rules and eligibility conditions.

The legislation also adjusts VAT provisions concerning electronic interfaces and transactions in which a platform may be treated as a deemed supplier.

Under existing EU VAT rules, certain online marketplaces and digital platforms can be considered suppliers for VAT purposes when facilitating specific transactions.

Finland's amendments align the national framework with the first-stage ViDA changes and update associated provisions for the special VAT schemes.

These adjustments are relevant to online retailers and marketplace operators that facilitate cross-border sales.

Businesses using OSS should examine whether their existing VAT classification, transaction reporting, and platform settlement processes reflect the amended provisions.

However, the January 2027 legislation does not introduce the wider platform economy-deemed-supplier obligations planned under subsequent ViDA phases.

Those later measures principally concern short-term accommodation rental and passenger transport platforms, not a universal new deemed-supplier obligation for ordinary retail marketplaces.

The Finnish legislative package also includes Law 598/2026, which amends the rules governing VAT and excise tax exceptions for the Åland Islands.

Åland has a special tax position within Finland and is outside the EU VAT territory. Consequently, transactions involving Åland may require different VAT treatment from transactions occurring within mainland Finland.

The amendments adjust the Finnish special arrangements to allow qualifying supplies of electricity, network gas, heating, and cooling to be reported through the relevant special VAT scheme, including certain transactions taking place in Åland.

This is particularly relevant to energy suppliers operating across different tax jurisdictions.

Retailers and service providers conducting transactions involving Åland should continue applying the relevant territorial VAT rules, as the new legislation does not eliminate the islands' special tax status.

No. The first Finnish ViDA amendments do not establish a new nationwide obligation for retailers to issue electronic invoices or transmit transaction data to the Finnish Tax Administration in real time.

The January 2027 changes primarily concern the scope and operation of VAT special schemes and associated transaction classifications.

For ordinary Finnish retailers conducting domestic B2C sales, the legislation does not introduce new POS certification requirements, receipt formats, transaction-level reporting obligations, or fiscal device requirements.

Similarly, there is no new general VAT rate change introduced by Law 597/2026.

The legislation should therefore be distinguished from the later ViDA Digital Reporting Requirements (DRR), which will introduce more substantial changes to electronic invoicing and cross-border transaction reporting.

Retail technology providers should nevertheless monitor future Finnish implementation measures because subsequent ViDA reforms may affect ERP systems, invoicing software, and VAT reporting interfaces.

Finland's implementation of ViDA will continue in several stages, with the most substantial changes beginning in July 2028.

Implementation date
Main changes
January 1, 2027
Extension of OSS to eligible B2C energy supplies and related technical clarifications
July 1, 2028
Broader single VAT registration reforms, additional OSS coverage, and mandatory reverse-charge arrangements
July 1, 2028–January 1, 2030
New deemed-supplier rules for certain accommodation and passenger transport platforms, with permitted national deferral
July 1, 2030
Mandatory electronic invoicing and digital reporting requirements for covered intra-EU B2B transactions
January 1, 2035
Deadline for aligning applicable domestic real-time digital reporting systems with the EU framework
The 2030 reforms will be especially significant for businesses conducting cross-border B2B transactions, as they introduce structured electronic invoicing and transaction-level digital reporting obligations.

However, additional Finnish legislation and technical guidance will be necessary to establish detailed national implementation requirements for these later phases.

How Will These Changes Impact Retailers and POS Providers?

Will Finnish retailers need to modify their POS systems or VAT reporting processes by January 1, 2027?

Ordinary domestic retailers are not required to modify their POS systems solely because of Law 597/2026, as it introduces no new fiscal receipt or real-time reporting obligations. However, businesses supplying eligible energy products to consumers across EU borders should review their OSS configuration, VAT treatment, and reporting procedures before January 1, 2027.

Here you can find the Act on Amendments to the VAT Act: link 

Ljubica Blagojević, Junior Legal Research Specialist at Fiscal Solutions

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