Finland to defer VAT on imports to VAT returns

21 December 2017

From 1 January 2018, Finland will change the rules on accounting for VAT when importing goods into the country by allowing VAT registered businesses to defer the import VAT to their VAT reporting.

This will in effect remove the requirement to pay import VAT on goods at the time they are imported, which could result in savings on shipping costs and bank charges. It should also improve cash flow for businesses importing into the country, as they will no longer need to wait for the VAT to be refunded from the Finnish tax authorities.