Magazines imported from outside the EU are subject to VAT and need to be declared to Customs as of 1 July – concerns also magazines taken across the tax border to the Åland Islands
The Finnish Government proposal on changes to VAT legislation and the changes in EU customs legislation concern also magazines. All deliveries from outside the EU are subject to VAT and must be declared Customs regardless of value. This change is significant from the viewpoint of magazine publishers and subscribers.
As of 1 July 2021, in addition to magazines imported from outside the EU, also those taken for example from another EU member state to the Åland Islands are subject to VAT and must be declared to Customs. Currently this only concerns consignments where the value of magazines exceeds 22 euros.
A single customs declaration on a freight consignment is enough; individual copies of magazines to be declared separately
Once the change takes effect, magazine publishers can submit a single customs declaration on magazines arriving in freight even if a consignment contains magazines for several subscribers. This practice serves to ensure that magazines will find their way smoothly to customers also in the future. An EU-based magazine publisher or a company authorised by such a publisher can be pointed out as the importer instead several individual subscribers. VAT-registered importers are responsible for paying value added tax to the Finnish Tax Administration.
Magazines that arrive in Finland as individual consignments are declared individually. In those cases, the magazine subscriber is regarded as the importer liable to pay value added tax in connection with submitting a customs declaration. For periodic subscriptions, the value of a single magazine is the value of the periodic subscription divided by the number of magazines under that subscription. Once the subscriber has paid VAT and received a decision on release from Customs, they get their magazine.
Magazines from outside the EU: payment of VAT via the IOSS import system managed by the Tax Administration
When magazines are sent from outside the EU to subscribers in Finland, senders of magazines can register in the IOSS system. A magazine-specific customs declaration must be submitted for each magazine when they arrive in Finland. instead of an importer, it is an operator registered in the system who is responsible for payment of VAT according to instructions from the Tax Administration.
Magazines arriving in the Åland Islands across the tax border
Magazines can be declared as a single consignment if they arrive across the tax border in a single freight consignment. For example, a magazine publisher can declare magazines in its own name or by using a representative. Magazines that arrive as single postal deliveries across the tax border must each be declared separately.
If a magazine is sent to the Åland Islands from elsewhere in Finland and the submitting company has a tax border number, the recipient does not need to submit a customs declaration for each separate magazine delivered to them. Companies with a tax border number submit separate monthly summaries on magazines to Customs and, based on the declaration, settles the amount of VAT on behalf of the recipient. It is estimated that this procedure can be used until spring 2022.
Use of a subscriber list as a simplified procedure ends
Customs has previously authorised simplified procedures for customs clearances of magazines where a subscriber list has been used for declaring. Those authorisations will also expire on 30 June 2021 when the VAT reform takes effect.
Background of the change
The change is based on the reform of value added taxation applied in the European Union and on the Finnish Government proposal on implementing the reform in Finland. The Parliament of Finland has approved the proposal by the Government. The same schedule applies to necessary changes of EU customs legislation.
Additional information:
UCC(at)tulli.fi
