Change in value-added tax on September 1, 2024
The Finnish Parliament has approved the increase in the general value-added tax rate (VAT) from 24 percent to 25.5 percent. This change is part of the Finnish government's broader economic plan. While Parliament has approved the amendments, the changed VAT act has not yet been confirmed. If the law is fully adopted as proposed in the government proposal, the VAT rate will be 25.5% from September 1, 2024. All orders, contracts, and purchases will be subject to the new rate from the date of entry into force.
As a result of the change, the prices of Oomi's contracts, products, and services will change according to the new VAT rate. This change will apply to both fixed-term electricity contracts and electricity contracts that are valid until further notice, as well as their additional services. For other home and everyday services, such as solar panels and air-source heat pumps, the VAT rate will be determined by the date of delivery of the goods. For example, if you order solar panels and they are installed in your home in August, the VAT rate is 24%.
This change requires no action on your part. The change is based on clauses 2 and 3 of the Oomi Terms and Conditions and clauses 8.8 and 8.9 of the Terms of Electricity Sales (SME 2014).
I am an Oomi customer. How can I check the new price?
You can check the contract prices on your bill. The change will appear on your September consumption bill, which you will receive at the beginning of October.
Learn more:
You can find more information on The Finnish Parliaments press release as well as on the Tax Administration's web page.
Why is the value-added tax changing?
The Finnish Parliament has approved the increase in the general value-added tax rate (VAT) from 24 percent to 25,5 percent. This change is part of a broader government economic plan aimed at improving the sustainability of public finances and creating conditions to curb the growth of debt.
The Parliament has approved the change, but the law has not yet been adopted. If the law enters into force as proposed by the government, the VAT will be 25,5% starting from September 1, 2024.
When does the VAT change come into effect?
The VAT Act is still awaiting confirmation, but it is very likely that the VAT rate increase will take effect as planned on September 1, 2024. At that time, the new VAT rate will be 25,5%, replacing the current 24% rate. All orders, contracts and purchases from September 1, 2024, onward will adhere to the new rate.
How will this change affect prices?
With the change, all prices for Oomi’s contracts, products and services will be updated according to the new VAT rate.
The change applies to both fixed-term electricity contracts and electricity contracts, as well as their additional services. For other home and everyday services, such as solar panels and air-source heat pumps, the VAT rate will be determined by the date of delivery of the goods. For example, if you order solar panels and they are installed in your home in August, the VAT rate is 24 %.
If you have requested a quote from us for, for example, solar panels or air-source heat pumps before the change takes effect, the pricing in the quote will be updated to refelct the new VAT rate if necessary.
From September 1, 2024, the prices displayed on our website will include the 25,5 % VAT.
How can I check the new price?
You can check the prices of your contract on your invoice. The change will be visible in the consumption invoice for September, which you will receive at the beginning of October.
Does the change affect corporate customers differently than consumer customers?
The VAT changes affect both corporate and consumer customers in the same way. The updated prices will be the same for all customers unless otherwise stated.
How does the change affect discounts and special sale campaigns?
All discounts and sale campaigns will consider the new VAT rate from the date it comes into effect. Discounts will be determined based on the new price.
Does the change affect orders already made?
If you have placed an order that will be delivered to you before September 1, 2024, the old VAT rate will be applied. The new rate applies to orders placed before September 1 but not delivered before the effective date, as well as to orders placed after Seotember 1.
What should I do if I have questions or issues regarding the VAT change?
We are here to help! You can find our customer service’s contact information here. We are happy to answer all your questions and assist with any issues.
