Taxable amount for import VAT

1. Transport and loading costs etc. (Value Added Tax Act, section 91)

As referred to in section 91 of the Value Added Tax Act, the following are included in the taxable amount for import VAT: all costs for transport, loading, unloading and insurance of the goods, as well as other costs related to the import to the first place of destination in Finland specified in the transport contract. The customs value based on the transaction value shall include the freight, transport, loading, unloading and insurance costs up to the customs office of first entry in the EU (IA Article 137). The import costs from the customs office of first entry in the EU to the office of destination are added to the taxable amount for VAT. However, these costs are not added, if the costs up to the first destination in Finland are already included in the customs value. The transport costs up to  another destination in Finland or in another EU Member State that are known at the time when the import declaration is accepted must also be added to the taxable amount for VAT. If the final destination is not known, the first place of unloading can be used as destination. Read more about the taxable amount for VAT (tax basis) in the Tax Administration’s detailed guidance (in Finnish).

2. Forwarding costs

Other costs included in the taxable amount for import VAT may be, among others, the forwarding fee, a forwarding commission, container handling and freight-terminal charges at the port as well as goods charges levied at the port, at least up to the first destination in Finland (see point 1.). Read more about including the forwarding commission in the taxable amount for VAT (tax basis) in the Tax Administration’s detailed guidance (in Finnish).

3. Import taxes and charges

Taxes and other charges payable outside Finland as well as taxes, customs duties, and other charges, with the exception of VAT, payable to the State or to the EU upon import in connection with customs clearance shall be added to the taxable amount for import VAT. Import taxes and charges to be added to the taxable amount for VAT include, among others, anti-dumping duties, countervailing duties and oil waste charge. Read more about including the amount of excise duty in the taxable amount for import VAT (in Finnish).

Oil damage duty and car tax, for example, are not included in the taxable amount for VAT. Car tax is not paid using an import declaration. Instead it shall be paid on the importer’s own initiative to the Finnish Tax Administration. Read more about car taxation on the Tax Administration’s websiteLink to an external websiteOpens in a new tab.

As for goods sold at a customs auction, the taxable amount for VAT consists of the auction price, excluding taxes, customs duties or other import charges.

1. Data media and computer software stored on a data medium

Import of standard software is taxable, if the software has been stored on a data medium. In that case, the data medium and the software stored on it must be declared. The total value of the data medium and the standard software stored on it can be used as the taxable amount for VAT for the data medium and the software stored on it.

Import of a data medium and the software stored on it is taxable, if the importer is not a trader nor a VAT-registered legal person. Import is tax-free, however, when the importer is a trader or a VAT-registered legal person. However, the data medium must always be declared upon import.

2. Goods that have undergone treatment outside the EU

Import VAT must be paid for goods exported from the EU for treatment and placed under the outward processing procedure 21xx or other temporary export procedure 22xx, when they are re-imported. Treatment includes repair, manufacture and e.g. calibration or testing. On the basis of the standard exchange system, it is possible to import a replacement product for the goods exported for repair under the customs procedure 21xx. The following are included in the taxable amount for VAT: labour costs incurred outside the EU, value of the material added to the goods, all shipping costs in connection with import and export as well as import taxes and other charges. The shipping costs include, for example the costs for transport, loading, unloading, insurance as well as other costs related to the import up to the first place of destination in Finland specified in the transport contract or to another place of destination in Finland or in the EU.

VAT must also be paid, when defective goods have been exported from the EU, destroyed under the supervision of an authority or abandoned to the State without causing it any expense before the customs duties on the goods imported in its stead have been entered in the accounts.

Import is tax-free, when the goods are exported under the customs procedure 21xx for free-of-charge repair under warranty where the importer is not charged for the transport. If the transport costs are charged, VAT must be paid for them.

More information

3. Using equivalent goods

Equivalent goods can be used in the following procedures: inward processing, outward processing, end-use, temporary admission and customs warehousing. The use of equivalent goods requires an authorisation applied for in advance, and it must be indicated in the authorisation granted by the Customs Authorisation Centre. A customs declaration must be lodged for equivalent goods, that is, non-Union goods, and any import VAT and other charges due must be paid for the goods. Read more about the taxable amount for VAT in special procedures (in Finnish).

4. Temporary storage as well as the customs warehousing and free zone procedure

When imported goods placed under the customs warehousing procedure (UCC Article 237) or the temporary storage procedure (UCC Article 144) are cleared, the starting value for the taxable amount for VAT for the goods is their customs value. If the imported goods have undergone services (such as sorting or packaging) that could have been sold tax-free, the value of or compensation for the sold goods is included in the taxable amount for import VAT for the goods (Value Added Tax Act, section 72 h, subsection 1, paragraph 5). This means that tax-free services are taxed upon import. Transport costs, taxes and charges, for example, are also included in the in the taxable amount for VAT.

Goods in temporary storage as well as goods stored under the customs warehousing or free zone procedure can be sold tax-free during the storage. There can be several sales. The starting value for the taxable amount for import tax is determined by the last sales price of the goods. If the goods have undergone above-mentioned tax-free services after the last sale, only the value of the services after the last sale is included in the taxable amount. Read more about the taxable amount for VAT (tax basis) for stored goods (in Finnish).

• Taxable amount for import VAT (Tax Administration) (in Finnish)
• Instructions for outward processing

Oil damage duty and car tax, for example, are not included in the taxable amount for VAT. Car tax is not paid using an import declaration. Instead it shall be paid on the importer’s own initiative to the Finnish Tax Administration. Read more about car taxation on the Tax Administration’s website.

As for goods sold at a customs auction, the taxable amount for VAT consists of the auction price, excluding taxes, customs duties or other import charges.

VAT-registered businesses must declare any changes in the taxable amount for VAT on their own initiative to the Tax Administration by filing a VAT return. Read more on the Tax Administration website, on the page ”Näin ilmoitat maahantuonnin arvonlisäveron” (in Finnish).

If Customs has levied the VAT on the basis of a customs declaration where the taxable amount for VAT had been declared incorrectly, the party liable for tax can apply for revision of the customs clearance decision. Read more about appeals.

• If the taxable amount for VAT indicated in the customs clearance decision is too high or too low, the taxable amount can be amended. In such case, the correct amount of VAT will be levied, and a decision on subsequent recovery will be made concerning any unlevied VAT due.
• Import VAT is not repaid, however, based on a decision on repayment or remission of customs duty or a decision on appeal, if the paid tax can have been deducted (Value Added Tax Act, Chapter 10) or received as a refund (Value Added Tax Act, sections 100, 122, 130 and 131).

Value Added Tax Act (1993/1501) (the taxable amount of VAT is provided for in Articles 88–93(a)) (in Finnish and Swedish)