Finnish VAT 14% will be reduced to 13,5%

The reduced VAT rate will change from 14% to 13.5% at the turn of the year, effective from 1 January 2026. At Moder, we will implement an automatic, platform-wide update affecting all products currently using the 14% VAT rate.

At midnight, all products (bookable accommodations, activities, and additional services) with a 14% VAT rate will automatically change to 13.5%. You therefore do not need to take any action regarding products.

Exception: In brokerage sales sales, the VAT 0% price of the commission fee for extra services must be updated manually.

Possible actions related to invoicing:

When selling milk in a grocery store, the situation is straightforward: on 31 December 2025 VAT is 14%, and on 1 January 2026 VAT is 13.5%. However, pre-invoicing creates more complex situations in the hospitality industry.

We listed some different scenarios:

• The traveler has booked and paid for the holiday in 2025, but the stay takes place in 2026

  • The old VAT rate applies: VAT 14%

• The traveler booked the holiday in 2025 for February 2026 and pays in 2026

  • The new VAT rate applies: VAT 13,5%

  • Invoices created on or after 1 January 2026 will automatically use the new VAT rate. If an invoice was created before with 14% VAT but payment is received in 2026, the invoice must be credited and reissued so that accounting remains correct.

• The traveler booked a holiday for February 2026, pays on arrival, and no invoice was created in advance

  • The new VAT rate applies: VAT 13,5%

In prepaid bookings, the decisive factor is when the payment is made, not the booking date, the travel date, or the due date.

TL;DR: On 1 January 2026, we will automatically change the VAT rate of all 14% products to 13.5%. If you have created advance invoices with 14% VAT, you must correct them yourself if payment is received after 31 December 2025. Moder will not modify invoices.