Starting 1 January 2026, the Finnish government plans to decrease the reduced VAT from 14% to 13.5%, applied for overnight accommodation and certain goods and services. You can view a detailed list of the affected items on  the Government website . Note: The act is currently submitted to the President for ratification, which is expected before Christmas 2025. The legislator’s intended date of entry into force is 1 January 2026.

 

If your property operates in Finland, this change affects how you price, invoice, and report revenue from these services.

 

This article explains what the Mews system updates automatically, and which actions you need to take.

The Mews system does not automatically update:

• Tax rates on products and services linked to accommodation, for example early check-in, upgrades, and no-shows.
• Bookable services like day use and late check-out.
• Corrections linked to accommodation.
• Gross rates already configured in your pricing environment.

 

In this article you can learn about the following:

• How will the Mews system handle the Finland VAT change
• What will you need to do to handle the VAT rate change
  • How to prepare for the VAT rate change
    • On or after 22 December 2025
    • On 1 January 2026
• How to handle the impact of the Finland VAT rate change on your corporate bookings for Gross vs Net pricing
• The VAT rate change checklist for Finnish properties

 

How will the Mews system handle the Finland VAT change

The Mews system will handle that part of the VAT rate change which will reduce your manual work. The Mews team will migrate existing bookings starting 22 December 2025, with a daily process to handle new 2026 bookings. The final migration for open bookings and accommodation rates will complete on 1 January 2026.

On 1 January 2026, the Mews system will automatically:

• Update all accommodation rates with 14% VAT to 13.5% for nights starting 1 January 2026.
• Apply the change to open bills with accommodation nights that cover 1 January 2026.
• Update the tax rate codes used for accommodation. The system will automatically replace the 14% tax code with the 13.5% code.

 

What will you need to do to handle VAT rate change

Check if you use gross or net pricing in your accounting configuration. In gross pricing, Mews maintains the total price and adjusts the VAT component. Learn how to verify this in your  accounting configuration .

From 1 January 2026, you are responsible for updating:

• All bookable services with 14% VAT related to accommodation.
• Products like day-use rooms, early check-in, late check-out, and accommodation corrections.
• Manual pricing adjustments for net-based corporate bookings, where VAT changes may reduce net revenue.

 

How to prepare for the VAT rate change

The Mews team starts migrating all applicable reservations and updating the tax rate codes on or after 22 December 2025.

1. Check if your property uses gross or net pricing. Learn how to verify this in your  accounting configuration .
2. If you use gross pricing, adjust your 2026 base room prices to account for the new 13.5% VAT.
3. Coordinate with your revenue management system or manually update your 2026 base rates.
4. Update the base prices of affected products with fixed prices. Learn how in the How to create a product in Mews Operations article.

Note: Mews recommends not duplicating rates for 13.5% VAT. Creating new rates adds significant configuration overhead.

 

On or after 22 December 2025

• Verify that your integrations support the updated tax rate codes.
• Reach out to your integration partners for updates.

 

On 1 January 2026

1. Log in as an administrator in Mews Operations.
2. Verify rates and products use 13.5% VAT where applicable.

 

How to handle the impact of the Finland VAT rate change on your corporate bookings for Gross vs Net pricing

If your rate agreement for corporate bookings is net pricing, and you update only the gross price in Mews Operations, the VAT rate change will reduce your revenue.

 

The VAT rate change checklist for Finnish properties

1. Keep bills open to allow the Mews team to migrate the VAT rates.
2. Test your integrations for compatibility with the new VAT codes.
3. Adjust 2026 base prices to account for the VAT increase.
4. On 1 January 2026, update VAT on accommodation-related services and products.
5. Review rates on 1 January 2026 to confirm all affected items use 13.5%.
6. Communicate pricing implications with your business partners as required.

 

Additional resources: