The general VAT rate will increase from 24% to 25.5% starting on 01.09.2024. We have updated Paytrail’s interface to comply with the new requirements as on 20.06.2024:
- Paytrail’s service accepts decimals in VAT rates.
- The interface accepts numbers between 0 and 100, with one decimal place allowed.
- The decimal separator is a period (.), so for example, 25.5 is represented as “25.5” in the interface.
The applicable VAT rate is determined by the time of delivery of the goods or the provision of the service.
For physical products sales, the VAT is generally applied to the tax period during which the goods were delivered, i.e., handed over to the buyer.
If the products are handed over to the buyer no later than 31.08.2024, the applicable VAT rate is 24%, even if the buyer pays for the goods later in September.
More information about the change can be found on the Tax Administration’s website. For more specific guidance on how the VAT rate changes should be handled in different situations, please consult with the tax authorities.
From Paytrail’s system perspective, the VAT rate for a sold product or service is determined the moment the payment information is transferred from the online website to Paytrail’s system. The VAT rate cannot be changed afterward in Paytrail’s system for a payment that has already been created, even if the customer pays for their purchase at a later date.
It’s important to prepare for these changes in advance
Please also check with your other systems, online store platform or partners to ensure that the changes to the new VAT rate are accounted for in a timely manner.