Does the Finnish VAT increase affect flight prices?

The VAT for domestic passenger transportation in Finland will increase from 10% to 14% as of 1 January 2025. This change applies to domestic travel within Finland and the domestic portion of the journey when it includes an international connecting flight from Helsinki Airport with at least a 24-hour stopover in Helsinki. In addition, it affects travel extras on domestic flights, such as seats and baggage, and some service fees.

In September 2024, the general Finnish VAT was increased from 24% to 25.5% with effects to lounge access at Helsinki Airport, purchased as a travel extra, and internet access purchased for Finnish domestic flights.

The price of a flight ticket consists of the ticket price, government and airport passenger taxes and the VAT charged on top of these. Ticket pricing is dynamic, meaning prices are determined by supply and demand and, therefore, vary.