verovapaan

Verovapaa is a Finnish term meaning “tax-free” and is used to describe goods, services, or income that are not subject to taxation under Finnish law. In everyday language and official documents, verovapaa indicates an exemption from value-added tax (VAT) or from other taxes, as opposed to items that are taxable (verollinen).

In the VAT framework, verovapaa products or services are outside the scope of VAT, so no VAT is charged and no input tax deduction is allowed for buyers or sellers. The specific exemptions are determined by the Finnish VAT Act and related statutes, and they can apply to sectors such as health care, education, public services, certain nonprofit activities, and some international transactions. Some items may instead carry a reduced rate or be described as zero-rated, which are different mechanisms from a full verovapaa exemption and are handled with separate rules.

Verovapaa can also refer to income or benefits that are exempt from taxation, such as certain grants, scholarships, or social benefits, depending on current regulations. The exact scope of verovapaa classifications can change with legislation and administrative guidance.

In practice, the designation is most commonly seen in invoices, contracts, and forms, where parties or authorities mark lines as verovapaa to indicate that VAT or other taxes do not apply to those items. The concept is specific to Finnish tax law and is explained in guidance issued by the Finnish Tax Administration (Verohallinto).

See also: Tax exemption, Value-added tax, Verohallinto.