Change in general VAT rate will affect import VAT
The Government has put forth a proposal to the Parliament to raise the general VAT rate from 24 per cent to 25.5 per cent. The change is likely to enter into force on 1 September 2024. For importers of goods, this means that as of September, 25.5 per cent in import VAT must be paid for imported goods.
The VAT rate for imports is determined by the date on which the customs declaration has been accepted
According to the Tax Administration’s instructions, the VAT rate is to be determined according to whether the goods are delivered to the customer before or after 1 September 2024. Read more on the Tax Administration’s website: ”The general VAT rate rises to 25.5% starting 1 September 2024”.
The VAT rate for imports from outside the EU is determined according to the date on which the customs declaration has been accepted. If the customs declaration is accepted on 1 September 2024 or later, 25.5 per cent VAT will be levied. The VAT rate is 25.5 per cent even if you submit your customs declaration in advance in August.
If you are an operator registered for VAT, declare the import VAT to the Tax Administration as before, but from 1 September 2024, according to the new VAT rate, that is 25.5 per cent. Read more in the MyTax instructions.
If you are an operator not registered for VAT, provide the adjustments to the transaction price for the calculation of the taxable amount for VAT in the customs declaration as before. Customs levies the import VAT with the customs clearance decision, and the VAT rate for the import is determined according to the date on which the customs declaration has been accepted.
Are you entering the additional fiscal reference code FR5 in your customs declaration?
If you are entering the additional fiscal reference code FR5 in your customs declaration, the VAT rate of the customs declaration is determined according to the date of purchase of the goods. The declarant lodging the customs declaration does not have to provide the date of purchase of the goods as additional information or any other new additional information affecting the VAT levy, because the seller or IOSS operator will provide the amount of VAT levied. Read more on the Tax Administration’s website if you are registered for IOSS and you are submitting import declarations.
More information:
- Press release by the Tax Administration (available in Finnish and Swedish): Yleinen arvonlisäverokanta nousee syyskuussa − veron määrän ratkaisee se, milloin palvelu on suoritettu tai tavara toimitettu asiakkaalle
- The Tax Administration’s website: The general VAT rate rises to 25.5% starting 1 September 2024
- yritysneuvonta(at)tulli.fi