Exemptions from excise duties: diplomatic missions, diplomats, international organisations, joint defence activities under NATO and institutions and defence efforts of the European Union

The instructions have been updated to include a reference to products supplied to the armed forces of States party to the North Atlantic Treaty and the armed forces of other Member States present in Finland. In addition, some parts of the text have been rewritten to maintain clarity.

Excise duties are levied in Finland on energy products, electricity, alcohol, alcoholic beverages, tobacco, soft drinks and beverage containers.

1 Base of tax exemption

Under section 18 of the Excise Duty Act (182/2010), products supplied in the context of diplomatic and consular relations are exempt from excise duty. Products supplied to an international organisation, as provided in the international treaty for establishing the organisation or the agreement that outlines the location of the international organisation’s domicile, are also exempt from excise duty.

Exemption from excise duty also applies to products supplied for official use to an institution of the European Union located in Finland (including fuel for the institution’s motor vehicles, electric power for the institution’s premises, etc.). The total taxable purchase price of these products has to be at least €80. Products supplied to an institution of the European Union located in another Member State are also exempt from excise duty under the same conditions as in Finland.

Products to be used by the armed forces of a State party to the North Atlantic Treaty or for the civilian staff accompanying them or for supplying their messes or canteens are also exempt from excise duty.

Similarly, goods or services intended either for the use of the armed forces of an EU Member State or of the civilian staff accompanying them or for supplying their messes or canteens are exempt from excise duty when such forces take part in a defence effort carried out for the implementation of a Union activity under the common security and defence policy (CSDP) outside their Member State.

2 Specific instructions regarding alcoholic beverages

The determining factor for exemption from excise duty is the intended use of the products containing alcohol.

2.1 Official use

Diplomatic and other comparable missions, international organisations and institutions of the European Union are entitled to acquire alcoholic beverages exempt from excise duty for official use only. ‘Official use’ means that the alcohol is served by the mission, organisation or institution at their premises or at other specified premises reserved for their use, free of charge, to a specified group of guests invited by an ambassador or another member of the diplomatic staff or other similar person. Purchases for official use must be reasonable in volume.

If the event is arranged at a restaurant, the use is not considered official even if the rest of the requirements above are met.

In the same way, no official use is taking place if the event where alcoholic beverages are served is not arranged by the above parties entitled to exemption from excise duty, particularly if the products presented are on sale (e.g. a wine fair or other sales promotion event). Excise duty on alcohol, alcoholic beverages and beverage containers has to be paid for the beverages served at these events, and a temporary wholesale licence granted by the National Supervisory Authority for Welfare and Health (Valvira) is required.

Products subject to excise duty can only be served without paying the excise duty if all the following conditions are met:

• alcoholic beverages are served free of charge;
• the event is arranged by a diplomatic mission, an international organisation or by an institution of the European Union;
• serving takes place at the premises of the above party or at other specified premises reserved for its use;
• the guests have been invited by an ambassador or another member of the diplomatic staff, or by a representative of an international organisation or of an institution of the European Union;
• the event is intended for a specified group of invited guests.

2.2 Personal use

Diplomatic agents and career consuls posted in Finland are entitled to purchase alcoholic beverages exempt from excise duty for personal use for themselves or their family members living in the same household. Purchases for personal use must be reasonable in volume.

2.3 Gifts

No excise duty is levied on alcoholic beverages that diplomatic missions, international organisations, EU institutions and persons entitled to duty-free purchasing buy as gifts.

3 Specific instructions for procurement by the armed forces of a State party to the North Atlantic Treaty and the armed forces of a Member State of the European Union present in Finland

Purchases for joint defence activities are exempt from excise duty when the armed forces of a Member State of the European Union and the armed forces of a State party to the North Atlantic Treaty take part in joint defence activities outside their country.

The exemptions apply only to situations where the armed forces carry out tasks directly linked to a defence effort under the CSDP and do not cover civilian missions. Civilian staff are covered by the exemption only when the civilian staff are accompanying armed forces carrying out tasks directly linked to a defence effort under the CSDP outside their Member State. Tasks performed exclusively by civilian staff are not considered to be a defence effort.

In terms of Union activity, the exemption covers military missions and operations, activities of battlegroups, mutual assistance, permanent structured cooperation (PESCO) projects and activities of the European Defence Agency (EDA). It does not cover, for example, activities between Member States that are not related to defence activities or activities that do not have a defence dimension, such as the use of armed forces for security, humanitarian or rescue purposes.

4 Purchasing products exempt from excise duty

4.1 Making purchases in Finland

4.1.1 Purchasing products under direct exemption from excise duty

Products exempt from excise duty can be purchased in Finland exempt from excise duty in the following situations:

• Diplomatic and other comparable missions, international organisations, posted or located in Finland
  • The buyer has to present to the seller a certificate (often called the ‘French document’) issued by the Protocol Services of the Finnish Ministry for Foreign Affairs showing that the buyer is entitled to purchases exempt from excise duty.
• Institutions of the European Union located in Finland and deliveries to EU institutions located in another EU member country
  • If the products are supplied to an institution of the European Union, the institution in question has to present form 1330e of the Finnish Tax Administration to confirm its right to purchase the products free from excise duty. The form is to be provided to the seller.
• Armed forces of a State party to the North Atlantic Treaty or the civilian staff accompanying them or their messes or canteens
  • For the purchase, the purchaser must provide the seller with a VAT and/or excise duty exemption certificate certified by the Finnish Tax Administration.
• Armed forces of a Member State of the European Union, the civilian staff accompanying them or their messes and canteens
• For the purchase, the purchaser must provide the seller with a VAT and/or excise duty exemption certificate certified by the Finnish Tax Administration.

Purchasers who either present a French document, form 1330e of the Finnish Tax Administration or the VAT and/or excise duty exemption certificate can buy all excise products duty-free except for electric power that always involves the refund procedure of excise duty. Parties entitled to the exemption can buy products duty-free in a customs warehouse, a free warehouse or an excise warehouse.

For sales of alcohol from an excise warehouse, it is also required that the warehouse keeper has a wholesale licence. 

In the case of the acquisition of energy products, e.g. fuel, the Ministry for Foreign Affairs or the relevant institution of the European Union must first approve the French document or  form 1330e of the Finnish Tax Administration and then submit it to the Finnish Tax Administration. Armed forces of a Member State of the European Union and armed forces of a State party to the North Atlantic Treaty must submit an application on VAT and/or excise duty exemption to the Finnish Tax Administration. The Finnish Tax Administration will confirm the right to tax-exempt purchases after having verified with the Finnish Defence Forces whether the applicant is entitled to tax-exempt purchases.

4.1.2 Exemption from excise duty through a refund procedure

As for purchases of excise products for which the duty has been paid, exemption can be provided by refunding the paid excise duty on application. Purchasers can submit an application in MyTax or a free-form application for refunds to the Finnish Tax Administration. The length of the period covered by the submitted application can be one calendar month or one calendar year. The application must contain a breakdown of the products and quantities that have been purchased and for which a refundable duty has been paid.

Exemption from excise duty on electricity can only be implemented through the refund procedure. Parties entitled to acquisition of electricity exempt from excise duty can apply for a refund of the paid excise duty on electricity from the Finnish Tax Administration.

4.2 Purchases carried out in other EU Member States

When purchasing excise goods for which the duty has already been paid in the country of departure from a store (e.g. a wholesale wine shop) in another EU Member State, the purchaser must present to the seller a VAT and/or excise duty exemption certificate) certified by the Ministry of Foreign Affairs. In the case of armed forces, the form is certified by the Finnish Tax Administration. The form acts as a certificate of exemption from VAT and excise duty when the products are imported into Finland. The certificate is completed in duplicate; one copy is retained by the seller and the other is returned to the purchaser together with the products supplied.

If the products were purchased in another EU Member State, exempt from excise duty (e.g. from a tax warehouse), they can be transported to Finland under the duty suspension arrangement within the EU. In such cases, a copy of the VAT and/or excise duty exemption certificate must be submitted within 30 days of receipt to the Finnish Tax Administration at

Finnish Tax Administration
Excise taxation
PO Box 20
FI-00052 Vero, Finland 

A commercial document (such as an invoice) showing the quality and quantity of products received must be enclosed with the copy. The administrative reference code (ARC) of the e-AD (electronic administrative document) must also be submitted to the Finnish Tax Administration. The code can be found in the e-AD printout accompanying the transport or in other commercial documentation.

The VAT and/or excise duty exemption certificate is only used for alcohol, tobacco products or energy products. Other excise products, such as soft drinks, can be imported into Finland from other EU Member States without the certificate. For making such purchases, the diplomatic mission or international organisation must have a French document issued by the Protocol Services of the Finnish Ministry for Foreign Affairs. To prove that it is entitled to purchases exempt from excise duty, an EU institution must have form 1330e of the Finnish Tax Administration. Armed forces must have a VAT and/or excise duty exemption certificate certified by the Finnish Tax Administration. These forms and documents must be presented to the Finnish Tax Administration on request.

4.3 Imports from outside the EU

When an order for excise products is placed to a party outside the fiscal territory of the European Union or from third countries, the products must be declared at the place of import. A French document issued by the Ministry of Foreign Affairs or form 1330e of the Finnish Tax Administration certified by the relevant institution of the European Union or a VAT and/or excise duty exemption certificate certified by the Finnish Tax Administration must be presented at the time of customs clearance.