Finland Supreme Administrative Court Clarifies VAT Exemption for Independent Associations

The Finnish Supreme Administrative Court April 18 posted online Decision No. KHO:2024:60, clarifying the VAT exemption for independent associations. The taxpayer was a VAT-registered company that sold information-related services exclusively to Finnish occupational pension insurance companies at a cost to aid them in handling statutory duties. The Central Tax Board found the taxpayer was an independent association under Section 60 a of the VAT Act and therefore exempt from VAT on its sales of the services to its members. The Tax Administration subsequently denied the exemption, finding that the services didn’t directly promote general-purpose activity under Article 132 of EU ...