In Finland, the supply of social welfare and healthcare services is exempt from value-added tax under certain conditions. However, if these conditions are not properly met, VAT on such services may lead to significant costs. Determining the applicability of the exemption in advance is particularly important in chain supply arrangements to ensure correct VAT treatment…
In statutory audits, value-added taxation is often given only limited attention, which can result in material VAT risks remaining unidentified. However, when supported by the right expertise, the audit process presents a valuable opportunity to uncover VAT-related exposures. At Tuokko, auditors and VAT experts work in close collaboration to ensure that this opportunity is fully…
Earlier this year, we explored certain aspects of VAT and transfer pricing in our article. The Court of Justice of the European Union (CJEU) has now delivered one of the preliminary rulings referred to therein, providing further clarification on these matters. In the decision, the CJEU did not expressly rule whether a price established using…
The Finnish Government has published its General Government Fiscal Plan for the years 2026–2029. The plan sets out numerous policy guidelines for the development of tax legislation through the end of the current decade. Several of the proposed changes, if implemented, would have a significant impact on both corporate and personal taxation of entrepreneurs. While…
Transfer pricing refers to the pricing of transactions between related parties in accordance with the arm’s length principle. In particular, retrospective adjustments to pricing (transfer pricing adjustments) may often create uncertainty regarding their VAT treatment. Value-added taxation fundamentally differs from corporate income taxation in nature, which may lead to the perception that a transfer pricing-related…
Supreme Administrative Court (KHO) 2024:88 In recent Finnish case law Supreme Administrative Court of Finland (KHO) examined how unrealized foreign exchange gains and losses from euro-denominated loans granted by a Swedish company, A AB, to its Finnish subsidiary should be taxed, given that A AB was considered generally liable for tax in Finland based on…
