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