The Åland Islands are not part of the fiscal territory of the EU, so when goods are moved from mainland Finland or from other EU countries to Åland, import VAT must be paid for them. Import VAT must also be paid when goods are moved from Åland to mainland Finland.
A customs declaration shall also be submitted to Customs for goods imported to and exported from Åland. In addition to lodging a customs declaration, VAT-registered importers shall also declare the import VAT to the Finnish Tax Administration on their own initiative. If the importer is not registered for VAT, e.g. a private individual, the import VAT will be levied by Customs.
Imports from non-EU countries to Åland are subject to the same provisions as imports from outside the EU to mainland Finland. Customs declarations must be lodged for the goods, and VAT-registered importers shall also declare the import VAT to the Finnish Tax Administration on their own initiative. If the importer is not registered for VAT, e.g. a private individual, the import VAT will be levied by Customs.
Read more about Åland and VAT (in Finnish) on the Finnish Tax Administration website or about Åland and customs declarations (in Finnish).
Import of goods refers to the entry of goods into the EU. The import of goods takes place in Finland if the EU point of entry is in Finland. Import comprises e.g.
- import from outside the customs and fiscal territory of the EU, e.g. from China, directly to Finland
- import from Åland to mainland Finland as well as from mainland Finland or another EU country to Åland
- import to Finland from within the customs territory EU but from outside the fiscal territory of the EU, e.g. from the Canary Islands.
Import also takes place in Finland when the customs procedure that postpones the payment of tax is discharged or ends when the goods are in Finland. Procedures that postpone the payment of tax:
- a storage procedure referred to in Article 237 of the Union Customs Code (UCC)
- temporary storage (UCC Article 144)
- the inward processing procedure (UCC Article 256)
- the temporary admission procedure with total relief from import duty (UCC Article 250)
- the external transit procedure (UCC Article 226)
- the internal transit procedure (UCC Article 227)
- one of the above-mentioned procedures, when the goods are imported from within the customs territory of the EU, but from outside the fiscal territory of the EU. For example, if goods brought from the Canary Islands to Finland are in Finland when the internal transit procedure ends, import takes place in Finland.
When Union goods placed under the internal transit procedure in another EU Member State (within the customs and fiscal territory) are brought into Finland through a region that is not part of the customs and fiscal territory of the EU, import is not regarded as import referred to in the Value Added Tax Act, because it is a case of intra-Community trade. If goods brought into Finland e.g. from Ireland are transported through the United Kingdom and the T2 transit procedure is discharged in Finland, the import is not regarded as import referred to in the Value Added Tax Act.
The term “Union goods” refers to goods manufactured in the customs territory of the EU or goods imported from outside the customs and fiscal territory of the EU and released for free circulation.
In value added taxation, the terms “Member State” and “Community” refer to the VAT territory of a Member State and of the Community (of the EU) as defined in the legislation of the European Communities. See the list of the states and territories that are part of the VAT territory of the EU.
More information:
- Special status of Åland (in Finnish)
- Value Added Tax Act (in Finnish)
The national Value Added Tax Act (1501/1993) (in Finnish), with references to customs legislation, is applied to VAT on imports.
Customs legislation applicable to customs taxation
such as the national Customs Act 304/2016 and the Union Customs Code 952/2013.
Customs legislation is applicable to the value added taxation of imported goods that Finnish Customs is responsible for. Unless otherwise provided for by the Value Added Tax Act, the following are the responsibility of Finnish Customs:
- import of goods, payment, refund and recovery of tax and other procedures
- deferment of tax payment
- guarantees
- tax increase
- penalty fee
- reassessment
- appeals
- confidentiality of information as well as disclosure and receipt of confidential information.
On the Finnish Customs website, on the page Customs legislation, there are links to applicable legislation,
Åland
The Value Added Tax Act is applicable to the import of goods to Åland from mainland Finland, from another Member State or from outside the fiscal territory of the EU as well as to the import of goods from Åland to mainland Finland, unless otherwise provided for by the Act on exceptions to value added tax and excise duty legislation for the region of Åland (1266/1996) (available in Finnish and Swedish).
Read more on the Finnish Tax Administration website, on the page Tax border between Åland and Mainland Finland – import of goods.