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Tax-exempt use for demonstration purposes

To operate a motor vehicle for demonstration means that people can test drive it and that the vehicle is presented commercially or showcased to potential buyers. For a company that imports, manufactures or sells motor vehicles, it is exemptible from car taxation to operate a vehicle as described above, provided that this activity is part of the company’s business.

Requirements of tax-exempt use

To operate the vehicle for demonstration can be exempted from car tax only if:

  • The vehicle has a transfer permit issued in Finland, or has its vehicle registration in another EEA country. Read more about the transfer permit (
  • The vehicle is in demonstration for up to 9 months, no longer, counting from the date when it is demonstrated for the first time.
  • No potential customer or buyer operates the vehicle for longer than 72 hours.
  • The vehicle has not been in Finland before for demonstration (it is not important for purposes of this rule whether the previous demonstration in Finland lasted for a shorter time than 9 months).

Submit a declaration of use exempt from car tax

The party that imports the vehicle, or the party that enters the vehicle into service, must inform the Tax Administration of the tax-exempt operation before the vehicle is driven on Finnish roads.

When you submit the declaration in MyTax, the Tax Administration will immediately send you a letter confirming that the declaration has been received. The confirmation letter appears in MyTax, where you can print it. Go to the Communication tab and then click the See decisions and letters link under Decisions and letters. The letter will also be sent to you by post.

Always keep the confirmation letter of the declaration of tax-exempt vehicle use in your vehicle, either as a paper print-out or available on the display of a mobile device. Present it to the police or Customs if necessary.

Note: Please note that the letter is not a statement of approval regarding tax-exempt use. You are expected to first make sure that the legal requirements for exemption are fully satisfied. If there are no valid reasons for tax-exempt driving by virtue of your student status, the vehicle is subject to car tax. You can request an advance ruling on how the act on car tax is applied to the tax assessment of your vehicle. Read more about requests for an advance ruling.

You can submit the declaration either in MyTax, via API interface or on paper. MyTax opens on the Your tax types tab. Go to the Tax matters tab and then click the Activities relating to car tax link under Car tax. Then click the link for Declaration of tax-exempt use.

Submit the declaration in MyTax

An API interface to submit the Declaration of use of a demonstration vehicle is available. Read more about Vero API (technical instructions).

If you cannot log in to MyTax to send the declaration, and if you cannot send it through the API, complete and submit Form 1250 on paper (Declaration of use of a demonstration vehicle — Ilmoitus ajoneuvon esittelykäytöstä). You will receive the acknowledgement of receipt by post. The letter is sent to the address you have indicated.

Vehicle registration in an EEA country or an existing transfer permit

Vehicles in tax-exempt demonstration use must either be registered in an EEA country or have a Finnish transfer permit. Read more about the transfer permit (

You can get a transfer permit at an inspection station. You need to have submitted the declaration of use of your demo vehicle. Show the letter you have received from the Tax Administration acknowledging receipt of the declaration. If you submitted your declaration via the API, you can print out the Tax Administration’s API message and show it at the inspection station. 

Keep a driver’s log

The company that demonstrates the motor vehicle must keep a driver’s log, either on paper or in an electronic format. The log records act as evidence that you have fulfilled the requirements for tax-exempt use. All the driving must be logged. The following items of information are required:

  • start and end time of the trip
  • the odometer readings at start and end
  • purpose of the trip
  • who the driver of the demonstration vehicle is

Save the logbook for at least 6 years. The counting of time for the 6-year requirement begins at the start of the year that follows the year when the vehicle was demonstrated for the first time. If requested, you must show the logbook to the Tax Administration. If you have not complied with the above rules regarding the driver’s log, the Tax Administration can impose a penalty charge.

Page last updated 4/5/2024