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Finland: VAT Rules Amended

(Dec. 10, 2009) On November 13, 2009, Finland's President ratified a law that implements two European Council Directives on value-added taxation, 2008/8/EC of February 12, 2009, and 2008/9/EC of the same date. The Directives cover the place of supply of services and the rules for the refunds of VAT to taxable persons who are already established as such in a different EU Member State. The changes will become effective on January 1, 2010. (Laura Pakarinen, VAT Rules Amended, IBFD TAX NEWS SERVICE, Dec. 8, 2009, via email from

Concerning the location of the place in which services are deemed to be supplied for VAT purposes, the law states:

  • when services are provided by one taxable person to another taxable person, the place of supply will be where the recipient has established a business; and
  • when customers receive services, the place of supply is where the provider of the service has a place of business. (Id.)

The rules for refunds of VAT require that:

  • applications for refunds from businesses in EU Member States must be submitted electronically, using an electronic portal set up by the tax authorities (with no change in procedure for businesses outside the EU); and
  • the current quarterly schedule for reporting information to the VAT information exchange system (VIES) will be changed to a monthly schedule. (Id.)