Starting September 1, 2024, the Finnish Government will increase the general VAT rate from 24% to 25.5%. Additionally, the lower VAT rate will rise from 10% to 14% on January 1, 2025. These changes necessitate businesses to adjust their financial and accounting practices to comply with the new rates. Here’s what you need to consider and how Basware can support you through this transition.
Staying ahead of regulatory changes is critical for business continuity and compliance. Maintaining accurate VAT rates is crucial for several reasons:
Given the short time frame to adapt to these new regulations in Finland, it is imperative that businesses act now to ensure they are compliant with these changes.
Update VAT Rates: If your VAT rates are managed within your ERP, ensure the new rates are correctly updated. This update should flow seamlessly into your Accounts Payable (AP) solution via master data integration.
Direct Update in AP Solution: For those managing VAT rates directly within the AP solution, manually update the rates to reflect the new VAT codes.
Travel and Expense Management system update: Update the VAT and Basic Data information.
InvoiceReady update: Create the replacing tax code and ensure that the appropriate tax codes are set up with suitable periods of validity and replacing tax code.
Template Modification: Update your coding templates to incorporate the new VAT rates, ensuring all future invoices apply the correct rates.
Consultant Assistance: If your system uses customized invoice automation logic, such as hard-coded rates, Basware consultants can assist in updating this logic to the new VAT codes.
Basware has created a set of materials to help you understand the implications of the changes to your solutions and to guide you through managing them. For more information on VAT Rate Changes, please visit the Knowledge Base article here.
Alongside that guide, Basware offers a service package tailored to your individual support requirements for handling these changes. Here’s what we can do for you:
Analysis and Review: We will analyze the entire solution and clarify all the impacted areas. We'll discuss and agree on the changes and responsibilities.
Guidance: We'll guide you on updating the coding templates to ensure continued automation minimizes the effects of the change.
End-to-End Testing: Together we will test all affected solutions and confirm that your entire solution portfolio complies with the change.
Please visit the Customer Portal to submit a request using this link. Describe the needed assistance, and Basware Delivery Consultants will contact you promptly.
To ensure the availability of Basware assistance, we highly recommend signing up for the support before August 5th.