Tax exemptions based on the DCA – instructions for U.S. forces and U.S. contractors

The Defence Cooperation Agreement (DCA) between Finland and the United States entered into force on 1 September 2024. The agreement paves the way for cooperation between Finland and the United States in all security situations. Pursuant to the DCA, the U.S. forces and their members arriving in Finland and contractors selling goods and services to them are entitled to tax exemptions in Finland.

The exemptions are applied directly at the point of purchase or import or granted by way of reimbursement. A condition for tax exemption is that appropiate certification of the entitlement to tax exemption is provided.

Members of the U.S. forces, their dependents, and employees of U.S. contractors

You do not pay tax on your salaries or wages in Finland

Members of the U.S. forces, their dependents, and employees of U.S. contractors do not pay tax in Finland on work falling within the scope of the DCA. The exemption concerning salaries and wages does not apply to nationals of Finland or individuals ordinarily residing in Finland.

You can buy goods and services exempt from tax in Finland for your personal use

Members of the U.S. forces and their dependents can buy goods and services directly without VAT or excise duties in Finland in shops and other points of sale established for them.

If you buy goods or services for your or your dependents’ personal use elsewhere, any VAT or excise duty included in the price will be refunded to you. Products subject to excise duty include alcohol, tobacco and liquid fuels.

You can import your personal goods into Finland exempt from tax – certification required

Member of the U.S. forces, their dependents, and employees of U.S. contractors are allowed to import goods for their personal use exempt from VAT or excise duty. 

In order that you could be exempted from tax directly at the point of import, you must be able to provide, if requested, appropriate certification of your entitlement to tax-exempt import. Such certification is, for example, an identity card or some other reliable certification proving your identity.

You can use a vehicle you have imported into Finland without paying car tax

In general, motor vehicles brought into use and registered in Finland are subject to car tax. However, if you have imported a vehicle registered in some other country for your personal use, you can use it without paying the Finnish car tax throughout your temporary stay in Finland.

You do not need to submit a declaration of tax-exempt use, but the Finnish Tax Administration may ask you about meeting the requirements for tax-exempt use. You are exempted from car tax even if you acquire Finnish plates for your vehicle.

If you need to request a car tax refund

If you have bought a vehicle in Finland and paid car tax, you may be entitled to a refund. Before requesting a refund, call 029 497 150, our service number for car tax, to receive more detailed instructions. 

U.S. forces and contractors

Contractors do not pay income tax in Finland

Contractors of the U.S. forces do not need to pay income tax in Finland in so far as their activity falls within the scope of the DCA.

Purchases made in Finland are exempt from tax – exemption certification required

The U.S. forces and both U.S. and Finnish contractors are exempted from VAT and excise duties directly at the point of purchase, provided that they can provide the vendor with certification of tax exemption and that the goods or services are acquired for official use.

A further requirement for exemption is that the goods are purchased from an authorised warehouse keeper’s tax warehouse or from the Finnish Defence Forces.

VAT refunds

If a purchase has included VAT, U.S. forces and U.S. contractors can request a VAT refund on goods or services acquired for official use.

Print and fill out a VAT refund application, and send it to the Finnish Tax Administration by post 

Excise duty refunds

U.S. forces and U.S. and Finnish contractors can request an excise duty refund if they have not provided tax exemption certification at the point of purchase or if the products purchased are for official use but have not been purchased from an authorised warehouse keeper’s tax warehouse or from the Finnish Defence Forces. Electricity, biogas and natural gas always include excise duty. To gain tax exemption, a refund must be requested.

Print and fill out an excise duty refund application, and send it to the Finnish Tax Administration by post 

Contractors entered in the VAT register can deduct VAT

If a contractor registered for VAT in Finland does not provide a vendor with VAT exemption certification at the point of purchase, the purchase is subject to VAT. The contractor can deduct the VAT included in the purchase on its VAT return.

Import is exempt from tax – tax exemption certification required

Tax exemption is applied to U.S. forces and U.S. and Finnish contractors directly at the point of import. A condition is that the products are for official use by U.S. forces or contractors.If requested, they must provide certification showing that the products meet the conditions for exemption from VAT and excise duties. U.S. Version of NATO Form 302 serves as certification. 

Instructions for Finnish vendors – tax-exempt sale

VAT exemption

Finnish vendors can sell goods or services directly without VAT to U.S. forces or their contractors. The contractor may be a U.S. contractor or a contractor registered for VAT in Finland. The vendor can deduct the VAT included in such a tax-exempt transaction on its VAT return.

Excise duty exemption

The Finnish Defence Forces or an authorised warehouse keeper can sell products directly without excise duty to U.S. forces and both U.S. and Finnish contractors. A condition is that the products are for official use by U.S. forces or contractors. If the Finnish Defence Forces sell products, they can request an excise duty refund on any products they have bought with excise duties included.

Certification required

 The vendor must be provided with certification confirmed by U.S. forces that the goods, materiel, supplies, services, equipment and other property it sells are for U.S. forces. The buyer is required to provide the certification at the point of purchase. The vendor must keep the certification for purposes of accounting. If the buyer does not provide appropriate certification at the point of purchase, the sale is subject to tax.  The certification requirement applies to both VAT and excise duties.

Contact information

• Email for value added tax: vatrefunds(a)vero.fi; 029 497 051 service in English (general service number for businesses; persons or companies liable for value added tax (VAT))
• Telephone service numbers for excise taxation: 029 497 154 service in English
• Telephone service numbers for car tax: 029 497 152 service in English