How to submit a VAT return concerning VAT on imports

The VAT payable on imported goods is primarily based on their customs value. For more information, see the Customs website. Add any additional expenses such as insurance and transport to the customs value. Please note that part of the transport costs may already be included in the customs value. In this case, be careful not to repeat them in your calculation.

The following is a list of what to include in the VAT base for imported goods:

• Customs value (barring a few exceptions)
  • For more information on the exceptions, see (chapter 7 of) the “Base of VAT on imports” — Maahantuonnin arvonlisäveron peruste (guidance in Finnish and Swedish).
• Customs duties, other taxes and charges
  • taxes and charges levied in conjunction with customs clearance, paid to the State of Finland or to the EU
  • excise duties in situations where deferment had been allowed, so the customs clearance decision includes no excise duty
  • taxes and payments going to countries other than Finland
• Costs related to the importation
  • Freight, such as transport, loading, unloading and insurance of the goods
  • Other cost items, such as a forwarding commission and goods charges levied at a seaport

For detailed calculation rules, see “Base of VAT on imports” — Maahantuonnin arvonlisäveron peruste (guidance in Finnish and Swedish).

Include the freight costs related to the importation to the first place of destination in Finland, specified in the transport contract.

If, at the time of customs clearance, it is known to the importer that the goods will be transported to another destination located in Finland or elsewhere in the EU, the base of VAT must also include the cost to this destination.

Include the VAT information in your VAT return for the tax period (month, quarter, or year as the case may be) when the customs clearance decision was issued. The date is at the top of the page on the new customs clearance system’s document, just under the “Customs decision” heading.

Enter the import VAT and the VAT base under:

• Tax on imports of goods from outside the EU
• Imports of goods from outside the EU

If the imported goods will be used for a business purpose that entitles you to VAT deduction, indicate the deductible VAT under “Tax deductible for tax period” on the same VAT return.

If you import goods from another EU member state to the Åland Islands, include the VAT information in your VAT return for the tax period when the customs clearance decision was issued.

You can make use of comparison data when calculating your VAT because the search feature of MyTax allows you to search for similar imported goods that you are importing. Always check, however, that the comparison data is correct. If you detect any errors in the customs decision, please contact Customs (tulli.fi).

MyTax additionally shows a sum total (Customs’ comparison data on imports of goods), representing the import declaration data, for each tax period of your VAT returns. The total consists of customs values during the tax period according to customs decisions, of the duties imposed by Customs, and of taxes and other charges. You also have the option to drill down to detailed data on your company’s imports, sorted by customs decisions (click on Show detailed information).

Please note that the actual VAT base for imported goods is usually greater than the MyTax-displayed comparison data. The actual base is greater because it is inclusive of transport and other costs related to the importation that are excluded from the comparison data originating from Customs. More detailed guidance concerning the cost items that must be included is found in “the “Base of VAT on imports” — Maahantuonnin arvonlisäveron peruste (guidance in Finnish and Swedish).

You also have the option to search comparison data by customs decision in MyTax (Tax matters » Business operations » Comparison data on VAT on imports).

Your search terms can focus on a time frame of your choice, by reference to tax periods or by reference to clearance dates. Alternatively you can use other search terms, including

• authorised representative’s name
• customs clearance decision number
• customs clearance value

You can get the search results in a .csv file to save them in your workstation (click Download as file).

Filter options for the results include “by decision number” and others (you can adjust the Filter feature as you prefer). After you select one of the decision numbers among your search results, further information will appear. This may be a reference to an Additional procedure relating to the customs clearance.

If you prefer, you can have certain customs decision information sent directly to your company’s accounting software system not only to MyTax. Information being available includes the decision number, customs clearance date, and customs value. You can contact your software provider to find out what needs to be done to get the online information directly for your accounting software system.

However, you can receive the above data without creating a link to your accounting software if you are an Ilmoitin.fi user. Read more about data requests and queries through Ilmoitin.fi.

Note: The Finnish Customs uses new import declaration forms as of April 2021. The new forms are for companies that submit declarations concerning goods to be released for free circulation. For example, updates were made to the codes on the import declaration that indicate Additional procedure. The new system had an impact on the comparison data saved in MyTax.

• Accordingly, in the case of imports from another EU country to the Åland Islands, or imports between Finland and the Åland Islands (customs clearance across the customs border), the customs value in the comparison data in MyTax is always €0. In the same way, for goods of minor value cleared through customs, the comparison data in MyTax may contain no customs value. 

If MyTax fails to show the customs value, you must find it out yourself, relying on other methods, in order to calculate the VAT base.

If your VAT return contains an error, please correct it as soon as you notice it. Errors typically concern the VAT base and the VAT amount. The way to correct an error is to submit a replacement VAT return for the period when the error occurred. The replacement return replaces the previous return fully, so you must also include all the entries that were already correct in the original return.

However, if the erroneous amount of VAT was €500 max., either in excess or left out of the VAT return concerned, no replacement return is necessary because you can change the VAT amount on the next period’s VAT return.

Read more: How to make corrections to a VAT return

Further information on the Customs website:

Commodity codes of goods
How do I submit an import declaration?
Correcting an import declaration

When applying for revision of a customs clearance decision

If after goods are first exported to a non-EU country they are imported to Finland, the importation may be relieved from customs duties. For more information, see Import of returned goods (tulli.fi)

In some cases, VAT must be paid on return goods when they are imported. However, this kind of importation may also be VAT-exempt. The precondition for the VAT exemption for return goods is that Customs treats the importation as being free of customs duty. Further requirements for the exemption are that the goods were not exported VAT-free to a non-EU country; and that goods, which were used in Finland for a business purpose, were not sold outside the EU. It is also required that the importer of the goods is the same person or company as the exporter. Where questions on VAT treatment arise that remain open for interpretation, it is within the jurisdiction of the Tax Administration to settle the question.

If the importer of return goods is VAT-registered in Finland, the importer must submit a report concerning the importation to the Tax Administration even if the importation were VAT-exempt and no VAT payment were required. VAT base is calculated in the same way for both taxable and tax-exempt imports. Your VAT return for the tax period must cover the VAT information on imports together with the tax period’s other VAT.

If the import of return goods is VAT-exempt, you are required to report

• The VAT base for imported goods under “Imports of goods from outside the EU”.
• Enter the amount of VAT under “Tax on import of goods from outside the EU” as 0,00 (because if the importation is tax-exempt, no calculation of VAT on import is performed).

If the import of return goods is subject to VAT, you are required to report

If the additional requirements for VAT exemption are not met, you must pay VAT on the importation of the return goods although the customs duty might be relieved when they were imported.

The payer of VAT on imports is the person, company or other party in whose name the customs declaration is submitted. If the goods are imported for a business purpose, it is required that the declaration be filed in the name of the VAT-registered company that will utilize the goods in its conduct of business.

The submitter of the declaration may also be an indirect representative. It means that the representative acts in its own name but on behalf of the actual importer, often also called the principal. In this case, the payer of VAT on imports is then the importer of the goods, namely, the principal. If you provide services as an indirect representative, enter your principal’s Business ID or personal identity code on the customs declaration. Enter the principal’s personal identity code when your principal is a private individual who will use the goods for private nonbusiness purposes. In the case of indirect representation, the Åland Islands are an exception to the main rule.

If an indirect representative, for example, submits an import declaration to the Customs by mistake, indicating that the importer is a company other than the one using the goods for a business purpose entitling to VAT deduction, it is necessary to apply to Customs to have a revision of the customs decision carried out. Read more about revisions of a customs decision on the Customs website.