Finland Updates VAT Refund Guidance for Non-EU Businesses Including Reverse Charge Scenarios

On 20 January 2025, the Finnish Tax Administration updated its detailed guidance on VAT refunds for businesses established outside the EU (ulkomaalaispalautus). The guidance explains who can claim VAT refunds in Finland, which business activities qualify, what types of purchases are refundable, and how refunds must be applied for using the Tax Administration’s written application form (Form 9550). The refund mechanism allows non-EU established taxable persons to recover Finnish input VAT included in the price of goods and services acquired in Finland, provided the statutory conditions are met. Key points clarified in the updated guidance • Eligibility Refund entitlement depends on Finnish VAT rules. In general, the claimant must not be liable for VAT on its sales in Finland and must not have a fixed establishment in Finland that participates in sales. • Reverse charge situations The guidance describes circumstances in which a non-EU business may have only sales subject to reverse charge in Finland and still be entitled to claim a VAT refund on eligible Finnish costs. • Intra-EU transactions and reporting obligations The guidance notes that foreign traders carrying out certain intra-EU supplies or acquisitions involving Finland may have Finnish VAT reporting or registration obligations. In such cases, input VAT may need to be recovered through VAT returns, rather than via the non-EU refund procedure. • Application deadline Refund applications must be filed within six months from the end of the calendar year to which the claim period relates, meaning the typical deadline is 30 June of the following year. • Minimum refund amounts Different minimum refund thresholds apply depending on whether the claim is made during the year or for the full year or year-end period. • Administrative updates The January 2025 update also reflects updated VAT rate information, administrative and contact details, and clarifications relating to construction-sector reverse charge situations and the refund position of businesses using VAT special schemes.