Finland Tax Agency Posts Preliminary Board Ruling Clarifying VAT Liability of Jointly-Owned Forest

The Finnish Tax Administration Feb. 27 posted online Central Tax Board Preliminary Decision No. KVL:2025/5, clarifying the VAT liability of a jointly-owned forest. The taxpayer was a jointly-owned forest with shareholders. The taxpayer could deduct input VAT on its taxable sales of timber, but not on its occasional tax-exempt activities, such as real estate sales. The taxpayer sought an advance ruling on VAT liability for sales of shares. The Central Tax Board held that: 1) sales of shares in the forest would be securities transactions under Sections 41 and 42(1)(6) of the VAT Act, which are tax-exempt financial services; 2) ...