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A foreign company’s or organisation’s right to use a vehicle exempt from tax

A foreign-registered vehicle can be used exempt from tax in the operations of a company or organisation located outside Finland if the vehicle is imported and used by a person residing permanently abroad. The vehicle can be used exempt from tax for no more than 7 months during a period of 12 months.

In this case, it is not necessary to submit a declaration of tax-exempt vehicle use to the Tax Administration.

The vehicle’s driver must be able to present documentation to the Tax Administration about their permanent place of residence and give an account of other matters relevant to taxation. Read more about determining the permanent place of residence for purposes of car taxation. In addition to the driver, the company or organisation whose operations the vehicle is used in must also give an account of the vehicle’s tax-exempt use to the Tax Administration if requested.

International organisations located abroad and other organisations using a vehicle in their operations in Finland can also use the vehicle exempt from tax in the manner described above.

A foreign company’s department, subsidiary or other organisational entity operating in Finland cannot be considered a company located outside Finland or a legal person separate from the company.

If the requirements for tax-exempt use are not met, the vehicle is considered to have been taken into taxable use. The person who started using the vehicle must submit a declaration of use and file a car tax return. Read more about filing the tax return.

The vehicle’s first user

The vehicle’s first user is the party who first uses the vehicle in traffic in Finland or the party whose operations the vehicle is used in. If the vehicle has been in tax-exempt use, the first user is the party who uses the vehicle after the requirements for tax exemption have ceased to be valid or the party in whose operations the vehicle is then used. If the first user cannot be determined otherwise, the first user is the vehicle’s owner.


Page last updated 1/1/2021