Since January 1st 2018, Finland has implement new procedures on how to report VAT incurred on imports.
This has been achieved with the introduction of the “postponed accounting” procedure which means VAT-registered businesses will no longer pay VAT at customs when the goods enter Finland. Instead the import VAT will be self-assessed by the business using the periodical VAT declarations.
The purpose of this new procedure is to improve cash flow for Finnish importers, as from 2018 the import VAT will not have to be paid firstly in order to be later recovered through customs. The whole process will be completed via the deduction of such VAT in the VAT return which can currently only be done for intra-EU transactions of goods. Whilst this will be good news for businesses, there will be no change to existing rules for businesses not registered for VAT in Finland or individuals.