Finland Supreme Administrative Court Clarifies VAT Application for Purchased Services Regarding Projects in Finland’s EEZ

The Finnish Supreme Administrative Court April 17 posted online Decision No. KHO:2025:33, clarifying the VAT application for purchased services regarding wind farm projects in Finland’s exclusive economic zone (EEZ). The taxpayer, a company, planned to build a wind farm in Finland’s EEZ and purchased research and analysis services from nonresident service providers without Finnish permanent establishments (PE). The Taxpayers’ Rights Enforcement Unit claimed that the VAT Act applied to the specified transaction because Finland has full jurisdiction over research activities performed in the EEZ and can therefore impose taxes there. The taxpayer argued that Finland wasn’t provided taxing authority over ...