Foreign business operator’s registration for notification duty changes on 1 May 2019

News, 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.

Further information

VAT registration of foreigners in Finland