In an article published on 14 October 2025, Verotus reported on forthcoming amendments to Finland’s Tax Collection Act (veronkantolaki) that will clarify the use of tax payments and refunds in the MyTax (OmaVero) system. The article was published by Taloushallintoliitto and reflects practical experiences gathered during earlier interpretation challenges. The article recalls that already in 2018, Taloushallintoliitto collected extensive feedback from its member firms on problematic MyTax use cases. These highlighted how complex the allocation of payments and refunds had become due to multiple payment references, different allocation hierarchies and varying refund thresholds, particularly affecting VAT and other self-assessed taxes.
Under the Tax Collection Act, the handling of payments and refunds in MyTax is governed primarily by Chapters 2 and 4, which regulate the allocation of payments to taxes due. Different payment references apply to different taxes, and each reference follows its own statutory allocation order. For self-assessed taxes, including VAT, payments made using the dedicated reference are allocated to due taxes in order of statutory limitation periods, from oldest to newest. Where several self-assessed taxes share the same due date, payments are allocated in a fixed order, with VAT ranked after payroll withholding and employer health insurance contributions.
Excess payments may subsequently be used for other outstanding taxes. Payments made using the income tax reference follow a different allocation logic, based on due dates rather than limitation periods, and may only be applied to other taxes if no income tax liabilities remain. By contrast, payments made using a general customer reference are allocated across several tax types, including VAT, in a predefined statutory order that the taxpayer cannot influence. The article also explains the treatment of negative VAT (refundable VAT). VAT refunds may be used to settle outstanding taxes in the same order as payments made with the self-assessed tax reference.
Refunds become available for offset once the VAT return has been filed, but not earlier than the general due date following the tax period. Importantly, refunds may be used to offset tax liabilities even while the Tax Administration is still verifying the refund. Special attention is given to refund thresholds, which businesses may set for self-assessed taxes. These thresholds determine whether refunds are immediately paid out or retained for offset against future tax liabilities. Income taxes are excluded from the refund threshold mechanism.
Overall, the article highlights that the forthcoming legislative amendments aim to simplify and clarify these rules, improving legal certainty and reducing administrative burden for businesses and accounting professionals dealing with VAT payments and refunds.
