Finland Supreme Administrative Court Clarifies VAT Treatment of Company-Provided Parking Leases

The Finnish Supreme Administrative Court Sept. 23 posted online Decision No. KHO:2024:106, clarifying the VAT treatment of company-provided parking leases. The taxpayer, a parking facility company, provided cost-based parking services to shareholders through mandatory subscription agreements. The taxpayer sought clarification on whether collecting these parking fees constituted leasing or transferring the right to use real estate under the VAT Act. The Finnish Tax Administration and Administrative Court both found that the transactions created a right to use property, not a lease. On appeal, the Supreme Administrative Court reversed the decision and held that: 1) collecting the shareholder parking fees constituted ...