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Tax exemption for small imported online purchases to be removed in July

VAT will also be paid on shipments valued at 22 euros or less that are ordered from outside the European Union.
Photo: Andrea Piacquadio/Pexels.
Photo: Andrea Piacquadio/Pexels.

Value added tax (VAT) on online purchases, in the future, will also be paid on shipments valued at 22 euros or less that are imported from outside the European Union (EU), the Finnish Ministry of Finance said through a press release Thursday.

The government chaired by Prime Minister Sanna Marin proposed that the applicable legislative amendments be approved by the President of the Republic for entry into force at the beginning of July.

VAT has not so far been collected on consignments valued at 22 euros or less if the goods were imported from outside the EU. At the same time, VAT has been payable on small purchases made within the EU.

Under the legislative amendments made by the government, the tax exemption for consignments imported from outside the EU will be removed.

According to the Ministry of Finance, this "will improve the competitive position of companies within the EU by creating equal conditions for competition."

"Changes will also be made to distance selling of goods within the EU. In addition, the administrative burden of VAT will be eased," the government says.

Tax exemption for small imported online purchases to be removed in July
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