Foreign business operator’s registration for notification duty changes on 1 May 2019News, 4/17/2019
As of 1 May 2019, foreign business operators must register for VAT if
- they have bought construction services or other services in Finland to which the VAT reverse-charge scheme can be applied
- they conduct imports in addition to tax-exempt intra-Community sales and acquisitions.
Previously, foreign business operators have not been required to register for VAT, just for notification duty.
When must a foreign business operator register for notification duty?
If the foreign business operator has not registered for VAT, they must still register for notification duty if
- they conduct tax-exempt intra-Community sales in Finland
- they make tax-exempt intra-Community acquisitions in Finland.
A foreign business operator can be registered for notification duty if they have a permanent establishment in Finland but do not conduct VAT-liable activities there. In this situation, they can also conduct in Finland
- sales to which the VAT reverse-charge scheme is applied
- sales where the buyer is the State of Finland
- sales that are exempt from tax in Finland, if these sales do not affect the business operator’s right to make tax-exempt intra-Community acquisitions.