Tax-exempt use of a vehicle

If the requirements for tax-exempt use are met, you are entitled to use your vehicle without paying car tax.

If you import a vehicle to Finland for tax-exempt use or take a vehicle into tax-exempt use in Finland, you must usually submit a declaration of tax-exempt use to the Tax Administration. You must file the declaration before the tax-exempt use begins. In some circumstances, however, no declaration of tax-exempt use is required.

File the declaration of tax-exempt use before you start using the vehicle in Finland

File the declaration of tax-exempt use in MyTax before you start using the vehicle in Finland. The Tax Administration will confirm your declaration, but that does not mean that the Tax Administration has checked or confirmed that the requirements for tax-exempt use are met. Please remember to check beforehand whether or not you have the right to use the vehicle exempt from tax. If you do not, your use of the vehicle is subject to tax.

Always keep the confirmation of the declaration of tax-exempt use, along with other documents showing that you are entitled to use the vehicle without paying car tax, in the vehicle. Present the documents to the police or Customs if requested.

The Tax Administration may ask you to give additional information or an account of the vehicle’s tax-exempt use. The Tax Administration may also ask you to provide documents to help determine your right to tax-exempt use.

Permanent place of residence

The place where the user or first user of the vehicle is considered to have their permanent residence is significant in many cases. Read more about permanent residence.

If the requirements for tax-exempt use are not met

If there are no grounds for tax-exempt vehicle use, the Tax Administration instructs the first user of the vehicle to file a tax return and imposes both car tax and late-payment interest on the user. Because the first user of the vehicle has neglected their obligation to file a car tax return and a declaration of use, the Tax Administration will also impose a punitive tax increase and a negligence penalty.

Read more about the punitive tax increase and negligence penalty in car taxation (available in Finnish and Swedish, link to Finnish).

Negligence penalty for failure to report tax-exempt use

You may have to pay a negligence penalty for failure to report tax-exempt use if

  • you do not file a declaration of tax-exempt use even though you have the reporting obligation
  • you file a declaration of tax-exempt use but it is inaccurate.

The Tax Administration will not impose a penalty in the case of minor negligence or if there is a justified reason for the negligence.