Worldwide VAT, GST and Sales Tax Guide
Helsinki
EY Advisory Oy
Korkeavuorenkatu 32-34
00130 Helsinki
Finland
Indirect tax contacts
Kirsti Auranen
Eija Tannila
A. At a glance
Name of the tax
Local name
+358 (0) 400 621-692
kirsti.auranen@fi.ey.com
+358 (0) 400 874-154
eija.tannila@fi.ey.com
Value-added tax (VAT)
Arvonlisävero (ALV)
Date introduced 1 June 1994
Trading bloc membership European Union (EU)
Administered by Finnish Ministry of Finance and Finnish Tax Administration (Verohallinto) (http://www.vero.fi)
VAT rates
Standard
25.5%
Reduced 10%, 14%
Other
VAT number format
VAT return periods
Thresholds
Registration
Established
Non-established
Distance selling
Intra-Community acquisitions
Electronically supplied services
Recovery of VAT by non-established businesses
B. Scope of the tax
Zero-rated (0%) and exempt-with-credit
1234567-8 (used for domestic trade, imports and exports)
FI12345678 (used for intra-Community trade)
Monthly (or in certain cases quarterly or annually)
EUR20,000
EUR100,000
EUR10,000
EUR10,000
EUR10,000
Yes, subject to certain conditions
VAT applies to the following transactions:
• The supply of goods or services made in Finland by a taxable person.
• The intra-Community acquisition of goods and acquisition of services (as provided in Article 196 of EU Directive 2008/8/EC) from another EU Member State by a taxable person (see the EU chapter).
• Reverse-charge services received by a taxable person in Finland (i.e., services for which the recipient is liable for the VAT due).
• Reverse-charge goods purchased by a taxable person in Finland.
• The importation of goods from outside the EU, regardless of the status of the importer.
For VAT purposes, Finland does include the insular province of Ahvenanmaa (Åland Islands). Åland Islands are not, however, part of the EU VAT territory, which brings a number of special VAT provisions and practices regarding the trade related to the Åland Islands, specifically in regards to the supplies of goods. However, the province is part of the Finnish and EU customs territory.
Quick Fixes. Pending introduction of a “definitive” system for the VAT treatment of intra-Community supplies of goods to taxable persons, the EU has adopted Quick Fixes for intra-Community trade in goods. For an overview of Quick Fixes rules, see the EU chapter. For documentary requirements, see Section H. Invoicing, subsection Proof of exports and intra-Community supplies.
The Quick Fixes have been adopted by Finland from 1 January 2020. However, the Quick Fixes provision did not have an effect on the documentation necessary as proof for zero rating the intraCommunity supplies of goods, and documentation proving the transportation is accepted as proof. One document as proof of the transportation is considered sufficient. There are no other local rules or derogations of the Quick Fixes in Finland.
Effective use and enjoyment. To avoid instances of non-taxation or double taxation, EU Member States can apply use and enjoyment rules that allow a service that is “used and enjoyed” in the EU to be taxed or prevent a service that is “used and enjoyed” outside the EU from being taxed. If a service is taxed in the EU under the use and enjoyment provisions, a non-EU supplier of the service may be required to register for VAT in every Member State where it has customers that are not taxable persons. For information regarding the rules relating to VAT registration, see chapters on the respective EU countries.
In Finland, no services are subject to the “use and enjoyment” provisions.
Transfer of a going concern. The supply of goods or services in connection with the transfer of a going concern (TOGC) or a part thereof is not considered a VAT-taxable sale, provided that the goods or services transferred will be used as part of the transferee’s VAT-taxable business activities. If the transferee’s business activities result in a partial VAT deduction, this provision only applies to the extent of the VAT-taxable business activities.
Transactions between related parties. If a consideration excluding the tax portion is considerably below the open market value, and the transaction is between related parties where the purchaser does not have the right to deduct the VAT in full, the output tax is calculated based on the open market value.
C. Who is liable
A taxable person is any business entity or individual that makes taxable supplies of goods or services, intra-Community acquisitions or distance sales in the course of a business.
The VAT registration threshold of EUR20,000 (starting on 1 January 2025) applies to businesses that are established in Finland or that have a fixed (permanent) establishment in Finland.
Under the main rule, the place of supply of services is determined by the location of the fixed establishment of the purchaser to which the services are supplied. If no such fixed establishment of a purchaser exists, the place of supply is the purchaser’s domicile. If the supplier does not have a domicile in Finland and does not have a fixed establishment in Finland that would intervene in the rendering of the service in the country of the purchaser, the supplier must invoice the purchaser for the sale of the service without VAT. Based on the reverse-charge mechanism, the
purchaser reports and pays the VAT on the supplier’s behalf. The main rule regarding the place of supply of services (Article 44 of Directive 2008/8/EC) is similar to the treatment of intangible services before 2010. However, for certain services (for example, services relating to immovable property, passenger transport, arranging of events and catering services), exceptions to the main rule exist.
Exemption from registration obligation. As a general rule, VAT registration obligations concern all entrepreneurs and companies supplying goods and/or services in the form of economic/business activities. There is generally no exemption to this obligation, unless supplies made are under the EUR20,000 threshold. This threshold applies to businesses established in Finland, and subject to preconditions, also to small non-established EU businesses. For further details see the subsection above.
Voluntary registration and small businesses. Council Directive (EU) 2020/285 amending Directive 2006/112/EC and Regulation (EU) No 904/2010, relating to the special scheme for small enterprises are implemented as of 1 January 2025 (see the EU chapter). Related key changes include the abolition of the specific tax relief (applied to businesses with turnover between EUR15,000 and EUR30,000) and allowing the application of the VAT registration threshold to also cover small non-established EU businesses.
An entrepreneur that is not required to register for VAT as a result of its turnover being below the small business threshold may still choose to voluntarily register for VAT. The voluntary VAT registration may be applied at the earliest from the date the application arrives at the Finnish Tax Administration. The voluntary VAT registration is possible under the precondition that the entrepreneur conducts activities for business purposes. The consideration is made based on all circumstances at hand. Voluntary VAT registration is allowed for both established and non-established businesses.
Group registration. Group registration may be granted to taxable persons that supply exempt financial or insurance services and to other taxable persons controlled by financial or insurance companies. Group members must have close “financial, economic and administrative relationships.” All members of the VAT group must be established in Finland. However, Finnish fixed establishments of foreign entities may belong to a VAT group.
Group members are treated for VAT purposes as a single taxable person. No VAT is charged on transactions between group members. Members are jointly responsible for all VAT liabilities of the group.
There is no minimum time period for the duration of a VAT group.
Holding companies. A pure holding company, as set out in the Finnish Act on Credit Institutions (Chapter 1, Article 15), and is aligned with the EU’s Capital Requirements Regulation (Article 4, Paragraph 1, Sections 20-21), may be included in a VAT group. From 1 January 2023, the wording of the VAT Act concerning VAT groups has been amended so that an insurance holding company (referred to in the Insurance Companies Act and the Insurance Associations Act) and an ownership entity (referred to in the Investment Services Act) may be included in a VAT group. The amendment corrected the outdated reference to the Accounting Regulation and updated the regulation to reflect developments in financial regulations.
Cost-sharing exemption. The VAT cost-sharing exemption (in accordance with VAT Directive 2006/112/EEC Article 132(1)(f)) has been implemented in Finland. This provides an option to exempt support services that the cost-sharing group supplies to its members, providing certain conditions are met (in accordance with specific requirements laid out in Finnish VAT law, Article 60a of the Finnish VAT Act).
Effective 1 July 2021, an e-commerce supplier may have a choice of how to account for VAT on its B2C supplies.
Local VAT registration. A nonresident supplier may choose to register for VAT in each Member State and account for VAT on all supplies made and recover input tax in accordance with local rules (see the Non-established businesses subsection above).
In Finland, the registration for VAT is done by filing a startup notification in paper format. It is not yet possible for foreign businesses to file their startup notifications online.
One-Stop Shop. Effective 1 July 2021, a supplier can choose to account for the VAT due under the EU One-Stop Shop (OSS), which can be used for intra-EU cross-border supplies of goods and all cross-border supplies of services made to final consumers in the EU. Unlike the previous Mini One-Stop-Shop (MOSS) scheme that applied until 30 June 2021, the OSS is not limited to cross-border supplies of electronic services, telecommunication services and broadcasting services.
The OSS is an electronic portal that allows businesses to:
• Register for VAT electronically in a single Member State for all intra-EU distance sales of goods and for B2C supplies of services
• Declare and pay VAT due on all supplies of goods and services in a single electronic quarterly return
The OSS can be used by businesses established in the EU and outside the EU. If a supplier or a deemed supplier decides to register for the OSS, it must declare and pay VAT for all supplies (goods as well as services) that fall under the OSS.
In Finland, registration for the OSS can be done electronically in the MyTax portal. The OSS consists of three parts; the Union scheme, the non-Union scheme and the Import One-Shop Stop (IOSS).
The Union scheme covers all the services sold to consumers in the EU and the distance selling of goods to consumers in the EU. A supplier can use the Union scheme to file and pay VAT if: 1) The supplier has its domicile or has a fixed establishment in the EU, and the supplier sells services to private consumers in EU countries, or 2) A supplier conducts distance sales from one EU country to another. Goods are sold to private consumers. It is not necessary for a supplier to have its domicile or a fixed establishment in an EU country.
A supplier can file and pay VAT through the non-Union scheme if the supplier has no domicile and no fixed establishment in the EU territory, and the supplier sells services to private consumers in EU countries.
The quarterly tax period is applied for the Union and non-Union schemes. Corrections will be made subsumed in the tax returns that are filed after perceiving the error, i.e., a corrective replacement return shall not be filed for the tax period where the error occurred. For more details about the operation of the OSS, see the EU chapter.
Import One-Stop Shop. Effective 1 July 2021, the Import One-Stop-Shop (IOSS) scheme applies for B2C distance sales of goods from outside the EU.
Effective 1 July 2021, VAT is due on all commercial goods imported into the EU, regardless of their value. The actual supply is subject to VAT in the country where the goods are imported (the country of destination). The IOSS facilitates the declaration and payment of VAT due on the sale of low-value goods (i.e., consignments valued at less than EUR150 per consignment). It allows suppliers selling low-value goods dispatched or transported from a non-EU country to customers in the EU to collect, declare and pay the VAT due. If the IOSS is used, the importation into the EU is exempt from VAT. For more details about the IOSS, see the EU chapter.
In Finland, registration for the IOSS can be done electronically in the MyTax portal. The monthly tax period is applied for the IOSS.
The use of the IOSS special scheme is not mandatory. If VAT is not collected via the IOSS scheme, the importation of goods into the EU is subject to import VAT in the country of final destination, and the Member State can decide freely who is liable to pay the import VAT, which could be the customer or the seller (or an electronic interface).
Postal Services and Couriers Scheme. If the IOSS is not used and the customer is liable for the import VAT due on the supply (and importation) of consignments with a small intrinsic value (i.e., less than EUR150), the VAT can be collected using the special scheme for postal services and couriers.
In Finland, the special scheme for postal services and couriers can be used by a transport company that acts as a representative for the consignee, who is a private individual or some other operator not registered for VAT and submits import declarations on behalf of this individual or operator. Before the transport company can use the special scheme for postal services and couriers, it must first register by sending a free-form notification to the Customs Authorization Centre. For more details about the special scheme for postal services and couriers, see the EU chapter.
Online marketplaces and platforms. Under the new EU VAT e-commerce rules, effective 1 July 2021, taxable persons that “facilitate” certain B2C sales of goods are deemed to have purchased and then supplied those goods themselves. This means that the single supply from the “underlying” supplier to the final consumer is split into two deemed supplies:
• A supply from the supplier to the facilitator (deemed B2B supply).
• A supply from the facilitator to the final customer (deemed B2C supply). Any intermediation service provided by the facilitator is disregarded for VAT purposes.
This provision does not cover all sales facilitated via the facilitator. It only covers distance sales of goods imported from non-EU jurisdictions in consignments with an intrinsic value not exceeding EUR150. The jurisdiction of residence of the supplier using the facilitator is irrelevant. The supply to the facilitating platform is VAT exempt and the supplies made by that platform follow the e-commerce VAT rules as described above. In addition, the provision also covers sales of goods within the EU, if the supplier is not established within the EU. This applies to both local shipments within one Member State, as well as intra-Community shipments (distance sales). In both cases, the final customer must be a nontaxable person.
In Finland there are no additional specific local rules that apply. For more details about the rules for online marketplaces, see the EU chapter.
Vouchers. Finland has, as of 1 January 2019, implemented the EU Directive 2016/1065 amending VAT Directive (2006/112/EC) as regards treatment of vouchers.
A “voucher” means an instrument where there is an obligation to accept it as consideration or part consideration for a supply of goods or services and where the goods or services to be supplied or the identities of their potential suppliers are either indicated on the instrument itself or in related documentation, including the terms and conditions of use of such instrument.
A “single-purpose voucher” (SPV) means a voucher where the place of supply of the goods or services to which the voucher relates, and the VAT due on those goods or services, are known at the time of issue of the voucher.
A “multipurpose voucher” (MPV) means a voucher, other than a single-purpose voucher.
In short, where the VAT treatment attributable to the underlying supply of goods or services can be determined with certainty when the SPV is issued, VAT should be charged on each transfer,
including on the issue of the SPV. The actual handing over of the goods or the actual provision of the services in return for an SPV should not be regarded as an independent transaction. For MPVs, VAT should be charged when the goods or services to which the voucher relates are supplied.
Registration procedures. In the case of mandatory VAT registration, retrospective VAT registration is required, provided that the business activities, causing the Finnish VAT registration obligation, have commenced in the past. In the case where a foreign entity opts to register voluntarily for VAT purposes in Finland, the earliest possible point of VAT registration is the date of the filing of the VAT registration form.
In Finland, the VAT registration form must be filed in paper format, including the company’s trade register extract with an English translation attached. The form and its enclosures must be sent to the Finnish Tax Administration by post. On average, the completion of the VAT registration procedure takes two to four weeks after the filing of the VAT registration application.
The Finnish Tax Administration must issue a decision to the person concerned for the VAT registration and the formation and dissolution of a VAT group referred to in Article 13a.
Deregistration. A taxable person that ceases to be eligible for VAT registration must deregister by filing a notification in paper format.
Where the original VAT registration was voluntary, the deregistration can be done at the earliest from the date when the deregistration form arrives at the tax administration.
Where the original VAT registration was mandatory, the deregistration can be effective retroactively from the date the VAT taxable activities have ended. If a VAT-registered company submits nil VAT declarations for several consecutive months, it is possible that the tax administration will deregister that taxable person from the VAT register.
Changes to VAT registration details. A taxable person is obliged to notify the tax administration when there is a change in its VAT registration details (change of name of company, address, type of business, VAT status, etc.). The change notification is filed in paper format or through the MyTax portal.
D. Rates
The term “taxable supplies” refers to supplies of goods and services that are liable to a rate of VAT, including the zero rate.
The VAT rates are:
• Standard rate (as of 1 September 2024): 25.5%
• Reduced rates: 10%, 14%
• Zero-rate: 0%
The standard rate of VAT applies to all supplies of goods or services, unless a specific measure allows for a reduced rate, the zero rate or an exemption.
Zero-rate supplies can also be classified as “exempt with credit,” which means that no VAT is chargeable, but the supplier may recover related input tax. Examples of exempt-with-credit supplies include intangible services supplied to another taxable person established in the EU or to a recipient outside the EU.
According to the Finnish government’s proposal, there are changes planned, but not yet confirmed, for the reduced VAT rates (10% and 14%). The changes would become effective as of 1 January 2025. If the proposal is accepted, most goods and services currently subject to the reduced 10% VAT rate shall be subject to a 14% VAT rate.
In addition, the Finnish government is planning to change the VAT rate for the sales of chocolates and sweets, currently subject to the reduced VAT rate of 14%, to be subject to the standard VAT rate of 25.5%. The planned changes would become effective as of 1 June 2025.
Examples of goods and services taxable at 0%
• Exports of goods
• Sale, leasing and chartering of sea-going vessels with prescribed characteristics, as well as work performed on such vessels
• Sales of goods or services to the EU Commission or another EU body to react for COVID-19, when certain preconditions are met
Examples of goods and services taxable at 10%
• Newspapers and periodicals (printed and digital versions)
Examples of goods and services taxable at 14%
• Cinema
• Sporting services
• Books (printed and digital versions)
• Medicine
• Passenger transport
• Accommodation
• Compensation from copyrights received by a copyright organization that represents the copyright holders
• Incontinence and menstrual protection and diapers
• Most foodstuffs, including restaurant and catering services (food served at restaurants)
• Animal feed
• Drinking water
The term “exempt supplies” refers to supplies of goods and services that are not liable to VAT and that do not qualify for input tax deduction.
Examples of exempt supplies of goods and services
• Land and buildings
• Financial transactions
• Insurance
• Education
• Health and welfare
• Transfers of copyright ownership
• Universal postal services supplied by universal postal service providers
Option to tax for exempt supplies. Leasing of land and buildings is generally exempt. However, provided that the certain preconditions are met, the lessor may opt to register for VAT when leasing immovable property and consequently, charge leases with the standard VAT rate. This is possible only provided that the land and or building in question is used continuously for a taxable purpose, or in certain other separately prescribed situations. There are also additional requirements for mutual real estate companies.
E. Time of supply
The time when VAT becomes due is called the “time of supply” or “tax point.” The basic time of supply is the month in which the goods are delivered, or the services are performed.
During the accounting year, a taxable person may account for VAT on the basis of invoices issued and received. At the end of the accounting year, the VAT reporting must be adjusted to follow the basic time of supply (i.e., on the basis of goods delivered and services performed).
Deposits and prepayments. The time of supply for an advance payment or prepayment is when the payment is received by the supplier (even if the supplier has not yet issued an invoice or made the supply).
Continuous supplies of services. The time of supply of the continuous supplies of services is the month in which a settlement period ends. A service for which invoicing is based on time spent rather than on amounts received is considered to be continuous.
Goods sent on approval for sale or return. There are no special time of supply rules in Finland for supplies of goods sent on approval for sale or return. As such, the general time of supply rules apply (as outlined above).
Reverse-charge services. There are no special time of supply rules in Finland for supplies of reverse-charge services. As such, the general time of supply rules apply (as outlined above).
Leased assets. Usually, the (operational) lease of assets is seen as continuous supplies of services as the invoicing is based on time spent. The time of supply of continuously delivered services is the month in which a settlement period ends.
Imported goods. The tax point for importation of goods is the date of the written customs clearance confirming that the imported goods are in “free circulation” in the EU following their direct importation or their release from a customs regime. This is not necessarily the date on which the goods are imported.
Intra-Community acquisitions. The tax point for an intra-Community acquisition of goods is the month following the month in which the goods are received, but this is superseded if an invoice is issued in the month of receipt of the goods, where the tax point is the month of receipt of the goods.
Intra-Community supplies of goods. The time of supply of intra-Community supplies of goods reflects the time of supply of intra-Community acquisition. As a consequence, the basic time of supply for an intra-Community supply of goods is the month in which the goods are delivered to the purchaser. The tax point for an intra-Community supply of goods is the month following the one in which goods are delivered to the customer, but this is superseded if an invoice is issued in the month that the goods are delivered.
Distance sales. The time of supply for supplies of distance sales is the month in which the goods have been delivered to the recipient of the goods.
F. Recovery of VAT by taxable persons
A taxable person may recover input tax, which is VAT charged on goods and services supplied to it for business purposes. The taxable person generally recovers input tax by deducting it from output tax, which is the VAT due on supplies made.
Input tax includes VAT charged on goods and services supplied within Finland, VAT paid on imports of goods and VAT due on the intra-Community acquisition of goods and VAT selfassessed on acquisition of services or goods.
The time limit for a taxable person to reclaim input tax in Finland is three years. If a taxable person notices erroneously non-deducted input tax related to an earlier period, it may recover the input tax within three years, calculated from the beginning of the calendar year that follows the end of the fiscal year in question. For example, if a taxable person notices that input tax has not been recovered for November 2023, the input tax must be recovered and the VAT return corrected either by the end of 2026 (if fiscal year equals to calendar year) or by the end of 2027 (if the fiscal year would be ending for example 31 March 2024).
G. Recovery of VAT by non-established businesses
Input tax incurred by non-established businesses that are not registered for VAT in Finland is recoverable. The Finnish VAT authorities refund VAT incurred by businesses that are neither established in Finland nor registered for VAT in Finland. Non-established businesses may claim Finnish VAT to the same extent as a VAT-registered business.
EU businesses. For businesses established in the EU, refunds are made under the terms of EU Directive 2008/9. The VAT refund procedure under EU Directive 2008/9 may be used only if the business did not perform any taxable supplies in Finland during the refund period (excluding supplies covered by the reverse charge). For full details, see the EU chapter.
Find below specific rules for Finland:
• Under EU Directive 2008/9, a claim form must be filed electronically with the domestic tax authorities of the taxable person’s country. According to the Finnish tax authority guidelines, applicants should use the electronic portal maintained by the tax authority in their Member State of establishment to reclaim Finnish VAT. The Finnish Tax Administration processes the electronically submitted applications in Finland.
• The section of the tax.fi website called “ALVEU” has an electronic question/answer service, called “Contact User Support” (tax.fi/ALVEU).
• The claim form may have to contain a closer specification of the invoices and importation documents (among others, the nature of the purchased goods or services itemized to different codes).
Non-EU businesses. For businesses established outside the EU, refunds are made under the terms of the EU 13th VAT Directive. For full details, see the EU chapter.
Finland does not exclude claimants from any non-EU country from the refund process and does not require reciprocity.
Find below specific rules for Finland:
• The deadline for refund claims is 30 June of the year following the year in which the supply was made. The date of supply may be earlier than the date of the invoice. The deadline for claims is strictly enforced.
• Claims must be submitted in Finnish, English or Swedish. The refund application must be accompanied by the appropriate documentation.
• The minimum claim period is three consecutive months during the same calendar year. The maximum claim period is one year. The minimum claim amount for a period of less than a year is EUR400. For an annual claim, the minimum amount is EUR50.
• According to the Finnish tax authority guidelines, refunds must be requested in writing. Form 9550 must be submitted, and the completed form should be sent to:
Finnish Tax Administration P.O. Box 560
FI-00052 VERO Finland
Late payment interest. In Finland, interest is not paid on late refunds to non-established businesses (for both EU and non-EU non-established businesses).
H. Invoicing
VAT invoices. A Finnish taxable person must generally provide a VAT invoice for all supplies made to other taxable persons and to all legal entities, including exports and intra-Community supplies. There are no obligations to issue invoices for advance payments for intra-Community supplies. Invoices are required for supplies to private persons regarding intra-Community supplies of new means of transport and distance sales.
Both sales and purchase invoices must be in accordance with the Finnish VAT invoicing rules. A purchaser of goods and services may recover the input tax on the purchase only if it retains an invoice that fulfills the requirements. If purchase invoices do not fulfill all the requirements, the purchaser may lose the right to recover the input tax, unless the inadequate invoice is replaced with a new (corrected) invoice.
An invoice for intra-Community supplies of goods carried out in accordance with the conditions specified in Article 138 or for supplies of services for which VAT is payable by the customer pursuant to Article 196 must be issued on the 15th day of the following month at the latest.
Credit notes. A VAT credit note may be used to reduce the VAT charged and reclaimed on a supply. An invoice must be issued for annual discounts, rebates, etc. The credit note must include a reference (e.g., invoice number) to the original invoice to which the credit applies. If the credit does not apply to a specific invoice, but is, for example, a discount for a certain period of time, then the invoice can be marked with additional information about the period of discounts.
Electronic invoicing. Electronic invoicing is allowed in Finland, but not mandatory.
Scope of electronic invoicing. For B2B, B2C and business-to-government (B2G) supplies, electronic invoicing is allowed but not mandatory. This is in line with EU Directive 2010/45/EU and 2014/55/EU (see the EU chapter).
There are no provisions in Finland that would unambiguously require electronic invoicing to be mandatory as such. However, the law stipulates that for B2G supplies the business must have the right to use electronic invoicing (government entities must accept electronic invoices). Furthermore, it is stipulated that for B2B and B2C supplies the purchaser has the right to require electronic invoices from vendors. The law is not applied to entrepreneurs with turnover of EUR10,000 or less.
For the EU VAT in the Digital Age (ViDA) proposals, refer to the EU chapter.
Simplified VAT invoices. Simplified VAT invoices may be issued in the following cases:
• Invoices for amounts up to EUR400 (including VAT)
• Invoices relating to supplies made by certain businesses whose clients are principally private persons, such as retailers and kiosks and hairdressers
• Invoices regarding passenger transport or restaurant services and receipts concerning parking meters and vending machines
Self-billing. Self-billing is allowed in Finland. There must be an agreement (written or oral) between the supplier and the purchaser on applying the self-billing arrangement. The general invoicing requirements apply also in self-billing cases and the supplier is responsible for the accuracy of the invoice.
Proof of exports and intra-Community supplies. Finnish VAT is not chargeable on supplies of exported goods or on the intra-Community supply of goods. However, to qualify as VAT-free, exports and intra-Community supplies must be supported by evidence, such as proof that the goods have left Finland. For an export, acceptable proof includes a copy of the export document, officially validated by customs. The authorities may also approve the use of other documentation such as consignment notes (or other commercial evidence) or the import declaration of the customs destination. Depending on the party that arranges the transportation, other requirements may need to be satisfied for the VAT exemption to be allowed.
For an intra-Community supply, proof of transportation of the goods movement from Finland to another EU Member State and valid VAT number of the customer in the other EU Member State is required.
No special documentation applies in Finland for evidencing the application of the Quick Fixes. In Finland, a supplier submits export and re-export declarations in the Export Declaration Service of the Finnish Customs. An electronic export declaration must be submitted to Customs for all goods exported from the EU, but for a few exceptions. The most common exceptions are the following:
• Postal parcels with a maximum value of 1,000 euros
• Personal goods carried by passengers
Foreign currency invoices. A valid Finnish VAT invoice may be issued in a foreign currency, but the VAT amount must be converted to euros (EUR) using the latest selling rate of the Bank of Finland or the rate published by the European Central Bank at the time the tax becomes chargeable.
Supplies to nontaxable persons. Finnish suppliers are not specifically required to issue tax invoices to nontaxable customers, but in practice, an invoice may often be required.
Distance selling. For intra-Community distance sales made B2C, a full VAT invoice must be issued. However, if the supplier operates the OSS regime, then no full VAT invoice is required unless requested.
Records. In Finland, examples of what records must be held for VAT purposes include bookkeeping materials (bookkeeping, financial statements, annual report, etc.) and tax invoices. In Finland, VAT books and records can be kept outside of the country. As of 1 January 2023, the provisions of the VAT Act concerning the storage location of invoices was amended in line with the amendment to the Accounting Act, so that taxable persons can now determine the storage location of invoices themselves. The review of invoices must be possible in Finland for the tax authority without undue delay, and it is also required that there is a complete real-time computer connection to the invoices stored electronically abroad.
Record retention period. The retention period for bookkeeping materials is 10 years. As a general rule, invoices must be kept for six years. In certain specific situations, longer retention periods apply, e.g., 13 years for invoices and documents related to real estate investments subject to the VAT monitoring liability.
Electronic archiving. Electronic archiving is allowed in Finland. This documentation can be stored abroad provided that the storage is arranged by electronic means and real-time access from Finland is guaranteed.
I. Returns and payment
Periodic returns. Finnish periodic VAT returns are submitted monthly or, in certain cases, quarterly or annually.
The taxable person files self-assessed tax returns, such as VAT returns, and EU Sales Lists in the Finnish Tax Administration’s online portal, MyTax.
In general, the periodic VAT return must be filed electronically by the 12th day of the second month following the return period. For example, the due date for the January 2024 VAT return is 12 March 2024.
If the taxable person’s tax period is a calendar year, the due date for the VAT return and payment of the tax due is the 28th day of the second month following the return period. The periodic VAT return is considered to be filed on time when the Finnish tax authorities receive the VAT return within the prescribed period.
Voluntary extensions of VAT reporting and payment periods to a quarter or year are available for small companies (turnover not more than EUR100,000 or EUR30,000 per calendar year, respectively).
The same three-year time limit concerns the tax authorities who can go back to review a taxable person’s VAT returns and identify errors and impose penalties. Additionally, tax authorities may continue the reassessment period for one year due to information received from other authorities, information received exceptionally late from a third party, or taxable persons’ late filing or other actions that aim at delaying the process. An extended six-year period is applicable in the case of information received from international exchange of information between tax authorities other than automatic exchange of information.