Vehicles older than 25 years
The taxable value of vehicles older than 25 years is not affected by the prices of these vehicles having already stopped at a certain level or climbing as the vehicles age.
1. Taxable value based on price observations
Tax Administration generally determines the taxable value by searching the markets for price observations on used vehicles which are similar to the one subject to tax and which have been taxed in Finland.
If there are observations and the prices of the cars have gone down over time, the taxable value of the vehicle will be based on these price observations.
2. Taxable value without price observations
If there is no similar vehicle on the market, the vehicle will be compared to an equivalent new vehicle. In such cases, Tax Administration will define the taxable value in the following manner:
- Attention will be paid to the vehicle’s make, model, body type, dimensions, engine size and function, power transmission and function of gears, as well as other factors that may influence the value.
- A value reduction curve or graph will be formed on the price of an equivalent new vehicle. Value reduction is one per cent per month of the residual value calculated for the end of each previous month.
- Following this, price observations are sought for a vehicle which is similar to the one that is to be taxed and which has already been taxed in Finland. A sufficient amount of price observations are sought, for example, from the age category of 8–12 years. With the observations, a perception of the reduction in the vehicle’s price level is formed. If these observations cannot be found, an adequate amount of price observations are sought for vehicles which are similar to the vehicle to be taxed and which are either a subsequent newer model or a preceding older model, for example, from the age category of 15–35 years.
- Based on the price observations, it can be verified that the level of the chosen value reduction curve is not too high. If acceptable and reliable price observations are on a level that is lower than the price reduction curve that was made for the vehicle to be taxed, the value of the new or equivalent new vehicle should be lowered in such a way that the value reduction curve no longer exceeds the price observations.
- A calculated Finnish selling price, with the inclusion of car and value added tax, derived from the price stated in a foreign sales notice can be used as a price observation.
- Finally, the vehicle to be taxed will be issued a value with the value reduction curve or graph.