VAT on restaurant food 13.5 % in 2026: what it means

What the 13,5 per cent rate applies to

According to the Finnish Tax Administration, the 13,5 % tax rate applies to foodstuffs, restaurant services consumed on the seller's premises and meal services served at the customer's location, i.e. catering. From 2025 the same rate applies, for example, to accommodation and to tickets to cultural and entertainment events.

The reduced rate fell from 14 percent to 13.5 percent on 1.1.2026. The standard VAT rate has been 25.5% since 1.9.2024.

Alcohol is always in the standard rate

The sale of alcoholic beverages is excluded from the reduced rate, so wine, beer and other alcoholic drinks served in a restaurant are taxed at the 25.5% rate. The same bill therefore often has two tax rates: food and non-alcoholic drinks 13.5% and alcohol 25.5%.

When you ask for a receipt, for example for a company dinner, check that the VAT rates are itemised. Itemisation makes bookkeeping easier and is a condition for making deductions correctly.

How much tax is in the price

Consumer prices stated by a restaurant include tax. The tax share can be calculated from the price including tax by multiplying the price by 13.5 and dividing by 113.5. For example, a 30,00 euro dish contains about 3,57 € in value added tax and about 26,43 € in sales excluding tax.

The VAT share of an alcoholic drink is calculated correspondingly with the figures 25.5 and 125.5. For example, a 12.00 euro glass of wine contains about 2.44 € of value added tax. For the consumer, the change in the tax rate is only visible if the restaurant changes its prices.

Prices are stated as total prices including tax. According to the guidelines of the Finnish Competition and Consumer Authority (KKV), a business must obtain the consumer's explicit consent to any additional charges not included in the stated price. If an invoice includes a service charge that was not disclosed in advance, ask about it before paying.

Takeaway, home delivery and catering

If a restaurant or grocery store delivers the food itself, the whole sale, that is, the food and the delivery, is taxed at 13.5%. If delivery is handled by a separate delivery company, it charges 25.5% tax on its own service.

For the client, this shows up as the delivery fee and service fee of a food delivery service being in a different VAT rate than the meal itself.

Catering ordered for a party, where the food is served at the customer's premises, also falls under the 13.5% rate. If the same quote includes alcoholic drinks, entertainment or other services, the general 25.5% rate usually applies to them. Ask for an itemised quote so that you can compare prices and the company can record the items correctly.

Company restaurant bills in taxation

Hospitality for customers and partners is entertainment. Under the Business Income Tax Act, 50 % of entertainment expenses are deductible in income taxation, and the VAT on entertainment expenses cannot be deducted. Record on the receipt or as an attachment the participants and the purpose of the event.

Customary and reasonable staff recreation events, such as Christmas parties for the whole staff, are treated under different rules: their costs are deductible, and the VAT is also deductible for a VAT-liable company. It is worth checking the boundary in the Tax Administration's guidance or with your accountant.

Keep a receipt showing the seller, the date, the products or services and the amount of tax by tax rate. Without an itemised receipt it is hard to show which part of the bill was food and which alcohol, and deductions may be lost.

Lunch benefit and staff catering

When an employer provides lunch, what matters for tax purposes is the value of the benefit in kind, not the VAT rate. According to the Tax Administration's decision, the value of the meal benefit in 2026 is €8.80 per meal when the employer's direct costs including VAT are €8.80–14.00. A lunch voucher or a benefit loaded on a card is valued at 75 % of its face value, but at least €8.80, when the face value is no more than €14.00.

The value of a meal for hotel and restaurant sector staff is 7,48 € and for staff of hospitals and similar institutions 6,60 € per meal. The detailed conditions are in the Finnish Tax Administration's decision on the calculation bases of fringe benefits.

Compare restaurants with Restaurant Radar

In Restaurant Radar you can see which restaurants suit a business lunch, a client dinner or a private event. When you organise an event, ask for a quotation that itemises food, drinks and any room hire by tax rate.

Remember that the VAT rate does not tell you the price level of a dish: the price difference between two restaurants comes from ingredients, wages and rents, not from value added tax, which is the same for all restaurants.

Frequently asked questions

Calculate it yourself

• Portion price calculator for restaurants · free
• The real cost of a business dinner to the company · free

Ready-made tools

• Lunch restaurant margin and pricing calculator · Portion cost, margin %, pricing and daily sales tracking
• Shift schedule and hours calculator · Shifts for 15 employees, overnight hours, weekly limit warning and payroll cost

Sources

1. Finnish Tax Administration: VAT rates (updated 1.1.2026)
2. Finnish Tax Administration: Representation expenses in income taxation
3. Finlex: Act on the Taxation of Business Income 360/1968
4. Taxpayers of Finland: We organised a Christmas party – which costs can a company deduct (2024)

The article is general information and does not replace the guidance of an authority, a lawyer or an adviser. Check up-to-date information from the sources.

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• Food allergy at a restaurant: allergens, Oiva report and table reservation