Finland Tax Agency Posts Preliminary Board Ruling on VAT Taxation of Electricity Sales

The Finnish Tax Administration Sept. 23 posted online Central Tax Board Preliminary Decision No. KVL:2024/30, clarifying the VAT taxation of electricity sales. The taxpayer, a company engaged in electricity production, owned shares in production companies that sold electricity to their shareholders based on the so-called Mankala principle. A shareholder sold electricity to the electricity exchange on the taxpayer’s behalf, including to two non-shareholding parties. The taxpayer bought the electricity back and sold it to the shareholder at market prices. The taxpayer sought clarification of the VAT treatment on the various sale transactions. The Central Tax Board held that: 1) the ...