Finland approved changes to it VAT legislation to implement the EU’s ‘Quick Fixes’ into Finnish VAT law. As a result, the changes are effective from 1 January 2020.
The changes mainly relate to the implementation of the EU temporary cross-border transaction simplifications known as the ‘Quick Fixes’. The ‘Quick Fixes’ aim to provide simplifications to VAT treatment that applies when EU supplies of goods take place. These include:
- Simplification and harmonisation of rules regarding call-off stock;
- The VAT identification number of the customer becoming a substantive condition in order to exempt the intra-Community supply of goods;
- Simplification of chain transactions to enhance legal certainty by establishing uniform criteria; in addition to
- Harmonisation and simplification of the rules relating to the need to provide documentary evidence as proof of an intra-Community transport of goods for the purposes of applying the VAT exemption.
The enactment of this bill will follow many other EU Member States in implementing the European Commission’s 2018 Directive; on the harmonisation and simplification of certain rules in the VAT system for the taxation of trade between Member States. All Member States should have enacted this Directive into law by 1 January 2020.
The ‘Quick Fixes’ are now in effect in Finland. You can prepare your business for the Quick Fixes by watching our webinar here.
If any of the above changes affect your business, please contact one of our VAT experts to find out how we can assist you.