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VAT Rate changes 1st of January 2025

A number of European countries introduced changes to the VAT rates which become effective on 01.01.2025.

 

  1. Finnish VAT Rate Changes
  2. Slovakia
  3. Shopify customers
  4. Shopify based book stores
  5. Shopify based food stores
  6. WooCommerce customers
  7. Additional actions for book sellers
  8. CSV customers
  9. API integrated customers

Finland

Some products, including books, are now subject to the reduced VAT rate of 14 % instead of the reduced VAT  rate of 10 %.

However, the change will not concern newspapers and magazines. Sanitary protection products and children's diapers, currently subject to a 25.5% VAT, will be subject to a reduced VAT of 14% in the future.

Link to the changes explained at the Finnish tax administration: https://www.vero.fi/en/About-us/newsroom/changes-in-taxation/changes-to-vat-rates-as-of-2025/


Slovakia

Standard VAT rate is changed from 20% to 23%. Reduced rate 10% is removed and two new reduced rates are introduced 19 % and 5 %.

Most food products are now are subject to 19% while books (printed, E-books and audio books) are now subject to 5 %.

Link to the updated Slovak VAT law : https://www.slov-lex.sk/ezbierky/pravne-predpisy/SK/ZZ/2004/222/#positionY-40235

Application of 19 % (group 1)  and 5 % rates (group 2 and 3) explained :

https://static.slov-lex.sk/pdf/prilohy/SK/ZZ/2004/222/20250101_5692101-2.pdf

Shopify customers

Shopify will apply changes to standard rates automatically. Tax overrides installed in your store need to be checked and amended manually .

This requirements only concerns stores that sell food and books.

Overrides for EU countries can be found in the Shopify store settings :

In the EU Section you will be able to see the overrides. Note that overrides may be product (there may be more than one sequence of product overrides in the store) or shipping ones. All overrides that exist in the store should be checked and corrected.   

Changes should be introduced earliest on 01.01.2025 but do not delay it since otherwise orders to Slovak republic will not be processed by EAS.

Shopify based book stores.

In a store that sell books there may be up to four sets or sequences of overrides , one for shipping and up to 3 for products (Printed books, E-books , Audio books). You need to check all sets of overrides and change:

  • the 10 percent rate for the Slovak republic (Slovakia)  to 5 percent ;
  • 10 percent rate for Finland to 14 percent.

Find Slovakia in the list , press 3 dots and choose “Edit”:

 

Edit the override by changing 10 to 5 and pressing “Save”:

Repeat the operation on all Slovakia entries found in the overrides section (you may have up to 4 sets of overrides for Slovakia – for shipping, printed books, E-books and Audio books) .

Repeat the operation for Finland changing the reduced rate from 10 to 14 percent (for all sets of overrides existing in your store for the EU market).

Shopify based food stores.

Same actions should be performed for food stores that have reduced rate overrides for Slovak republic.

The entry for most food items in Slovakia should be 19 percent.

Please refer to the link Application of 19 % (group 1) :

https://static.slov-lex.sk/pdf/prilohy/SK/ZZ/2004/222/20250101_5692101-2.pdf

The reference in the document is given for HS code groups.

Rates stated for the single or double digit groups  would apply to  all subordinate products. So Both tea and coffee products 0902…, 0901… would be included.

HS codes for your products can be identified here : https://asiointi.tulli.fi/asiointipalvelu/fintaric/GoodsTree


WooCommerce customers 

Actions should be taken before and after the turn of the New year.

Before 01.01.2025 :

  1. Check if your EAS EU and UK compliance plugin is set on auto update. This is important due to the fact that certain changes to the plugin will be introduced on 30.12.2023. We kindly ask you to check if the auto-update option for our plugin is enabled.

To do so , please go to the administrative menu of your WooCommerce shop, choose “Plugins” , “Installed plugins”, find “EAS EU compliance” plugin  and check that the auto update option reads “Disable auto update”. If it is so then it means that auto update function is enabled :

If you fail to do it before he new year , please , do it asap , we will run VAT updating  process at least 3 times in January 2024.


After 01.01.2025:     

Check if you have VAT rates set in the store tax settings.

Note that not all the WooCommerce stores are configured to have the VAT rates set in the tax options section. 

Go to administrative menu , choose “WooCommerce” , “Settings”  , “Tax”, open tax options “Standard rate” , “Reduced rate” , “Zero rates” (note that the name of the tax options may vary from store to store and can be named “Books” , Printed books” , “Audio books” etc. depending on the sold merchandise) 

Alternative view on tax options for a books store :

Most changes to VAT rates will be done automatically if EAS plugin is auto updated . But we would like you to make sure that the changes have been done.

  1. If you do not have any VAT rates set in the store (see the picture below)  you do not need to do anything more, all the calculations are handled by EAS and your store is fully operational and compliant.

Alternatively you will see the rates set for EU countries (we circled the new rate for Estonia, Luxembourg and Switzerland/Liechtenstein) . Note EAS automated rate which should not be corrected/changed at the bottom:

So you need to check in the tax options (separately for Standard and Reduced rates):

  • In “Standard rates” tax option,  the rate for Slovak republic (country code  SK)  should be set to 23 percent rate..
  • In “Reduced rate” tax option, the rate for Slovak republic, country code  SK should be set to 19 percent rate (for food products) or to 5 percent for books (see further).
  • In “Reduced rate” tax option, the rate for Finland, country code  FI should be set to 14 percent rate if you apply to the sales of books (see further).

Additional actions for book sellers.

  1. If you sell books, the reduced VAT settings for printed books, audio books and E-books should be checked and amended manually. As such you will need to manually adjust the rates applicable to books/E-books/Audiobooks for Finland republic (country code FI) to 14 percent from current 10 percent.   You may need to repeat the operation for all tax options related to books separately for printed , audio and E-books depending on the number of tax options in your store. You should make these changes asap. Do not delay these manual changes, since otherwise sales to Finland and Slovak republic will be done at the wrong rate .

CSV customers 

Customers that supply data in a csv file shall take the changes in to consideration.

If you supply sales data VAT inclusively you do not need to make any changes to your processes.

If you calculate VAT yourself prior to putting data to the CSV file make sure that standard VAT rate for Slovak republic is  considered at 23 percent , printed books/E-books/Audiobooks at 5 VAT rate. Reduced rate for Finland for books should be set at 14 percent. All changes should be applied to sales made from 01.01.2025

API integrated customers

If your store calculates VAT  on the store side you need to make sure that standard VAT rate for Slovakia is  considered at 23 percent. Reduced rate for food items for Slovakia is set at 19 percent , printed books/E-books/Audiobooks at 5 VAT rate. Sales of books to Finland are to be made with 14 percent VAT.

All changes should be applied to sales made from 01.01.2025

If VAT/Landed cost is calculated by EAS you do not need to make any variations to integration. EAS will take care of all necessary changes. 

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