Finland VAT rules

Registration process

OSS/IOSS registration process for taxable persons

Registration to One Stop Shop can be made electronically via the Finnish Tax Administration's MyTax e-service:

MyTax - vero.fi

Instructions regarding how to register can be found via this link:

How to apply for VAT special scheme registration - vero.fi

IOSS registration process for intermediaries 

Intermediaries can register also via MyTax:

MyTax - vero.fi

Instructions for intermediaries regarding how to register can be found via this link:

How to apply for VAT special scheme registration - vero.fi

Letter of authorisation (power of attorney) or similar agreement which proves the right to act as a company’s intermediary is needed. Please check the above link for more information.

A further condition for the registration of an intermediary is that the prospective intermediary has not significantly failed to comply – and is not expected to fail to comply – with their tax-related obligations.

Appointment of a tax representative for registration within the Union OSS 

Not required.

Refusal of registration

Companies and organisations will receive an appealable written decision on registration. Instructions for appeal are enclosed in the decision. If you need to claim adjustment, follow the instructions on this page: Claim for adjustment of a registration matter - vero.fi

You can file a written claim for adjustment in MyTax e-service. 

Invoicing

Invoicing

Invoicing comments

The required VAT information may be written on the invoice in any language. The Finnish Tax Administration may ask for a translation during a tax audit or other control procedure.

VAT returns

Formalities in the submission of the VAT return

Filing One Stop Shop VAT returns can be made electronically via the Finnish Tax Administration's MyTax e-service:

MyTax - vero.fi

Instructions regarding how to file can be found via this link:

Instructions for filing and paying VAT through special schemes - vero.fi

Corrections to returns after the three-year period

In Finland, corrections to VAT returns after the expiry of the three-year period are permitted in certain situations.  When Finland is the Member State of consumption, a taxable person is allowed to provide a corrective return three years from the beginning of the year following the calendar year where the VAT was due. 

After the Member State of identification no longer accepts corrections to earlier filings, a taxable person must complete the Tax Administration’s Form 9568e — VAT special scheme claim for adjustment. The form can be found via this link: VAT Special Scheme Claim for Adjustment (9568e) - vero.fi

The corrections are handled by the Finnish Tax Administration.

Reference to the above may be found in Articles 134 q subsections 5 and 6 of the VAT Act. 

Payment modalities and deadlines

Payment modalities in Member State of identification (MSID)

One Stop Shop VAT payments can be made electronically via the Finnish Tax Administration's MyTax e-service:

MyTax - vero.fi

MyTax payments are considered as online payments. Payments can also be made through bank transfers but payee must use reference number and bank account number found from MyTax -portal.

The reference number is customer and period specific.

Additional payment-related procedures in the Member State of consumption (MSCON)

Late Payment penalties will be imposed if payment was initiated after the due date.

Applicable payment deadline

VAT Payment must arrive at the Tax Administration by the end date of the month that follows the tax period’s end date. The deadlines do not move forward if the scheduled due date falls on a Saturday, Sunday or a public holiday.

Taxable persons are encouraged to initiate the payment couple days in advance and notice bank holidays and processing times. Payment is considered on time when the payment is received and booked on the tax authority’s account by the due date.

Payment Facilitation and Support for Arrears

Member States acting as MSCON are encouraged to describe any procedures for payment facilitation and discount arrangements for arrears or outstanding VAT amounts. This includes formal options available to taxable persons facing financial difficulties.

If a taxable person is experiencing financial difficulties, they may request a payment arrangement in MyTax. Instructions can be found here: How to request a payment arrangement in MyTax. If taxable person cannot use MyTax, theycan request a payment arrangement by calling our service number on 029 497 028 (standard call rates). More information can be found via this link: Payment arrangements - vero.fi

Reimbursements

As the Member State of consumption, do you require the taxable person to submit an additional claim before making the reimbursement?

No

Reimbursement threshold as Member State of consumption

If the reimbursement is below € 10, it will not be paid to the NETP.

Release from payment of insignificant amounts of VAT

Finland has not implemented rules under its domestic legislation whereby taxable persons are released from the payment of the VAT where the amount due is insignificant.

Refund of deductible VAT by non-EU established trader

If you have business operations in a non-EU country

You may be entitled to a VAT refund on goods and services purchased in Finland if your business is not liable to pay VAT on sales in Finland

your business does not have a permanent establishment in Finland.

VAT paid in connection with the importation of goods can also be refunded.

If your business is located in a non-EU country, you can request a refund by filing Form 9550 on paper. Applications for VAT refunds must be made within 6 months after the close of the calendar year to which the refund period relates.

You can contact us about VAT by calling our general service number for businesses, 029 497 0 51. Alternatively, you can contact us by email if needed: vatrefundsvero [dot] fi (vatrefunds[at]vero[dot]fi)

Further information:

• Refund of VAT to foreign businesses established outside the EU
• Application - Refund of value added tax to foreign businesses

Penalties for non-compliance (as Member State of consumption)

Failure to register and late registration

The possible consequence for failure to register is a penalty fee.

Reference to the above may be found in Article 133 f, 133 m, 133 t of the VAT Act and in Article 39 of the Act on Tax Assessment Procedure of Self-assessed Taxes.

In principle the failure to register or late registration under the OSS may result in the taxpayer having to register under the standard procedure.

Non-compliance with accounting obligations

The possible consequence for breaching the OSS or IOSS related accounting obligations is a penalty fee. 

Reference to the above may be found in Article 134 e § of the VAT Act and in Article 39 of the Act on Tax Assessment Procedure of Self-assessed Taxes. 

Non-submission and late submission of VAT returns

The Finnish Tax Administration imposes penalty charges for late filing. 

More information regarding the late filing penalty charges related to OSS can be found via this link: When the Member State of consumption is Finland: returns within the special scheme and payments to Finland - vero.fi

The late-filing penalty is composed of a daily charge and an additional charge based on the amount of tax. Information of how the late filing penalties are counted can be found via this link: Late penalty charges - vero.fi

Reference to the above may be found in Article 134 s § of the VAT Act and in Articles 35 and 36 of the Act on Tax Assessment Procedure of Self-assessed Taxes. 

Incomplete and incorrect VAT returns

If a taxable person has filed incomplete or incorrect VAT return, the Finnish Tax Administration may impose missing VAT to be paid.  Additionally, the Finnish Tax Administration may impose tax increase.

Reference to the above may be found in Articles 37, 38 and 40 of the Act on Tax Assessment Procedure of Self-assessed Taxes. 

Non-payment and late payment of VAT

A taxable person must pay late-payment interest on VAT paid after the due date and on all penalty fees imposed on your taxes.  Interest is calculated from the day after the due date up to the day of payment (these days included). Interest days are the actual days of the month and the year. The rate for the late-payment interest is set annually. 

More information can be found from Interest on late payments - vero.fi

Reference to the above may be found in Article 14 in Act on the Collection of Taxes and in Article 5 on the Act on Tax Increases and Late-Payment Interest.

Reminder Messages

In Finland, there are separate procedures regarding sending of reminders as Member State of Identification, or Member State of Consumption.

When Finland is MSID, VAT return reminders are sent electronically to the Finnish Tax Administration's MyTax e-service.  When Finland is MSCON, payment reminders are included in a summary sent via post on a monthly basis. 

Contact information of the Finnish Tax Administration can be found here: Contact information and services - vero.fi 

Exclusion and Appeals

Appeal procedures

Taxpayer registered in OSS may claim a file for adjustment to the Board of Adjustment concerning

• decision imposing tax
• decision imposing tax increase
• decision imposing a late-filing penalty
• decision on registration

Instructions for appeal as well as deadline for submitting the claim are enclosed in the above-mentioned decisions. When Finland is Member State of identification, taxpayer may claim adjustment on MyTax service and when Finland is the Member State of consumption, taxpayers may claim adjustment by using the form: VAT Special Scheme Claim for Adjustment (9568e) - vero.fi

Claims for adjustments must be filed either in Finnish or in Swedish. More information about claims for adjustments regarding decisions on self-assessed taxes can be found via this link: Making an appeal against a decision on VAT or employer's contributions - vero.fi 

In certain exceptional cases, the Tax Administration may not collect late-payment interest on overdue payments. Taxpayers may request non-collection of late-payment interests from the Finnish Tax Administration in writing either in MyTax or with a free-form application. More information regarding interests on late payments can be found here: Interest on late payments - vero.fi 

Steps after exclusion/de-registration

Where a taxable person ceases to use the OSS/IOSS but continues to carry out taxable activities in Finland, they must register for VAT in Finland.

You can enter your company in the Tax Administration's registers with the start-up notification form (Y-form). The forms are available at The Business Information System website (ytj.fi). 

More information:

Starting up business in Finland - vero.fi

VAT - vero.fi