Finland Tax Agency Posts Preliminary Board Ruling Clarifying VAT Treatment on Distributions of State-Paid Compensation

The Finnish Tax Administration April 15 posted online Central Tax Board Preliminary Decision No. KVL:2025/14, clarifying the VAT treatment on distributions of state-paid compensation. The taxpayer, a collective management organization, received a certain share of the loan compensation appropriation included in the state budget and paid the loan compensation to the author of a specific work. The taxpayer sought clarification on whether the lending compensation paid by the state was consideration for the sale of a service falling within the scope of VAT. The Central Tax Board held that the taxpayer: 1) sold a service for consideration in its own ...