Finland – single reference number for tax payments

Finland is currently making significant updates to its payment and tax systems, including the introduction of a single reference number for all business taxes. This move is part of a broader 2025 tax reform, that aims to simplify financial administration for businesses.

A major change effective in November 2025 is that businesses no longer have to use different reference numbers (viitenumero) for each tax type, such as VAT, corporate tax, and employer contributions. A single, general reference number replaces these multiple tax-specific codes, reducing errors and time spent on tax administration.

This change specifically applies to business taxpayers. Sole traders and agricultural operators will continue using separate references for now.

Positive impacts of the single reference number

Simpler payment processing:
Instead of using multiple reference numbers for different taxes, businesses can use one general number for almost all tax payments, including self-assessed taxes like VAT and employer contributions. This reduces the risk of errors and streamlines payment handling.

Clearer allocation of payments:
With the single reference number, payments are automatically allocated to the taxes that are due. If multiple taxes are due at the same time, the payments are applied in the order of their due dates, from oldest to newest.

Improved efficiency:
By simplifying tax payments and making allocation more predictable, the new system reduces the time and money companies and accounting firms previously spent resolving issues.

Challenges and limitations

Payment misallocation:
The main drawback is the risk of a payment not being allocated as intended. When a taxpayer uses the general reference number, the Finnish Tax Administration (Vero) will apply the payment to the oldest outstanding tax liability first. This can be problematic if a taxpayer intended the payment for a more recent tax, like VAT, but has an older outstanding tax debt, such as a prepayment.

Limited scope:
The single reference number is only for business corporations, partnerships, and other incorporated entities. The payment process remains unchanged for individual taxpayers, private entrepreneurs, and those involved in agriculture or forestry.

Exceptions to the general reference number:
Certain tax payments still require a tax-specific reference number. These include taxes included in a payment arrangement, taxes in enforcement, and taxes covered by the One Stop Shop VAT scheme.

Complexity for specific payments:
Although a general reference number is available, other specific reference numbers exist for situations like payment arrangements. This can create confusion for taxpayers, who must navigate which reference number is appropriate for different types of payments.

No interest on pre-payments:
The new system does not provide interest for paid-in balances that are waiting to cover future taxes. Interest accruals only apply to credit refunds.

The single reference number for tax payments in Finland offers the potential for simplification but is not without its issues.  While the system aims for simplification, it introduces complexities that taxpayers must navigate carefully. Challenges include potential misallocation of funds, administrative barriers for refunds, the persistence of multiple reference numbers for special cases, and a strong reliance on the MyTax digital service.