Value Added Tax (VAT)
VAT-related interpretative matters are an inherent part of daily business operations. They relate, for example, to the scope of input VAT deduction, the determination of the correct VAT rate, or the VAT liability of a particular activity. In particular, cross-border transactions introduce additional complexity into VAT compliance. Even minor errors can accumulate unnoticed over the years and may eventually result in substantial additional costs and hidden tax risks. It is therefore essential to address these matters proactively by determining the correct VAT treatment in advance.
Tuokko’s tax advisors support companies and entrepreneurs with a wide range of VAT-related matters. Our experts have extensive and long-standing experience in resolving VAT issues in both domestic and international matters.
Our services include, but are not limited to:
- Resolution of daily VAT queries
- VAT assessments and risk analyses
- Advisory services concerning VAT treatment of international trade and distance sales
- VAT due diligence in corporate restructurings
- Special VAT matters concerning the real estate and construction sectors
- VAT matters in the financial and insurance sectors
- VAT matters related to non-profit organizations
- Claims for adjustment, appeals, and responses to information requests
- Assistance in tax audits
- Preparation of advance ruling applications and requests for guidance
- Determination of fixed establishment (FE) status for VAT purposes
- Assessment of the need for VAT registration and the registration process
VAT Assessment
A VAT assessment is a comprehensive service designed to proactively review and verify the accuracy and compliance of your company’s VAT practices. This assessment can focus either on a specific area of business or encompass your entire business operations. Through the assessment, your company obtains a clear understanding of the accuracy and compliance of its VAT practices and the related tax risks. As part of this service, we also identify any overlooked VAT deductions and opportunities to optimize your company’s VAT position.
International VAT Services
As businesses expand internationally, they frequently encounter complex VAT issues requiring expert advisory support. Through our international network Praxity, the world’s largest alliance of independent accounting, tax, and financial consulting firms, we provide comprehensive VAT advisory services suited to the needs of internationally operating businesses. Leveraging this global network, we ensure your company has seamless access to reliable, high-quality VAT expertise from trusted professionals across all major markets.
Cross-border transactions and international trade often raise complex VAT issues requiring careful analysis. These range from straightforward sales transactions to highly complex situations requiring thorough analysis of local VAT requirements. While EU VAT regulations are largely harmonized, significant national differences remain, necessitating specialized local knowledge in certain situations, such as construction projects or specific service sectors. Non-EU businesses trading within the EU face additional complexity, as local VAT registrations and compliance requirements must often be assessed individually per country. Since VAT registration obligations often depend on whether a fixed establishment is deemed to exist, determining its status is a critical aspect of ensuring compliance in cross-border operations.
Assistance with Advance Rulings and Requests for Guidance
The correct application of VAT legislation in uncertain and interpretative situations may require official guidance or an advance ruling from the Finnish Tax Administration. We assist your company in assessing whether such guidance or a ruling is appropriate, and in preparing the necessary applications.
Assistance in Tax Audits
In corporate tax audits, VAT constitutes a separate object of examination. From the company’s perspective, achieving the correct outcome at the earliest possible stage is important in order to avoid unnecessary costs, tax assessments, and appeals. Therefore, involving a VAT advisor early in the audit process is recommended.
We support your company throughout the tax audit process by participating in negotiations with the Finnish Tax Administration and by drafting clarifications and responses as the audit progresses. Upon completion of the tax audit, we review the tax audit report and provide our assessment of the audit findings to determine whether the findings should be accepted or if a response to proposed tax adjustments is necessary.
Claim for Adjustment and Appeal
When there is a need to appeal a VAT-related decision, we provide assistance throughout the appeals process at all levels, including the Assessment Adjustment Board, the Administrative Court, and the Supreme Administrative Court. To ensure the success of an appeal, it is crucial that all relevant facts are presented as early as possible. It is therefore essential that claims for adjustment or appeals are prepared professionally and that all key issues are identified promptly. Our experienced VAT advisors ensure expert assistance throughout all stages of the process.
