When you’re visiting Finland as a tourist, you might be eligible for a 24% Value Added Tax (VAT) refund on certain goods you purchase during your stay. The VAT refund process is designed to provide relief for travelers who do not reside within the European Union (EU) and intend to take their purchased goods outside the EU.
This guide will walk you through the steps to help you successfully claim your VAT refund in Finland.
Minimum spend: total value of the purchased goods must be at least 40 euros. It can include several items included on the same sales receipt (invoice)
VAT Refund Calculator for Finland
| Refund | Percentage | VAT Rate |
|---|---|---|
| € 0.00 | 24% | 24% |
24% VAT Rate in Finland
The standard VAT rate is 24% in Finland, which has been applicable since 2013. A reduced VAT rate of 14% can be applied for product such as groceries, feed, restaurant and catering services
1. Understanding VAT and Eligibility:
Value Added Tax, or VAT, also known as sales tax is a consumption tax that’s included in the price of most goods and services. As a tourist, you’re entitled to a refund of the VAT paid on goods you intend to export (in other words, take home) outside the EU. To be eligible for a VAT refund, keep these criteria in mind:
- You must not have permanent or habitual residence within the EU.
- The value of the purchased goods, including VAT, must exceed 40 euros.
- The goods must be unused and intended for personal use.
Understanding Tax Refund Calculations
Understanding how tax refunds are calculated is crucial. While it might seem that a 24% VAT refund would result in a 24% reimbursement from your purchase, it’s not quite that simple. The calculation follows this pattern: Starting with 100 Euro + 24% equals 124 Euro. However, 124 Euro – 24% doesn’t equal 100 Euro. Instead, it’s 124 Euro – 19.36%, which equals 100 Euro.
Keep in mind that the tax refund amount will be further reduced after accounting for administration fees.
2. Purchasing Goods:
You are sure they will be helping you filling in a vat refund form, if you see stores that display “Tax-Free Shopping” or other similar (commercial) signs indicating participation in a commissioned VAT refund scheme. Inform the salesperson before the purchase that you intend to claim a VAT refund, and they will provide you with a VAT refund form to fill out.
3. Filling Out the VAT Refund Form:
The VAT refund form will require your personal details, such as your name, passport number, and country of residence. Make sure to provide accurate and complete information, as any discrepancies might affect the refund process.
The goods must be described in such detail that they can be identified and itemised.
The make and serial number of a television, for example, is a clear itemization.
“Clothes” is not a sufficient description. Instead, the goods must be itemised in the receipt as for example “coat, shoes or children’s wellington boots”.
“Sports gear” is not a sufficient description. Instead, the goods must be itemised in the receipt as for example “slalom skis, ice hockey stick or skateboard”.
“Jewellery” is not a sufficient description. Instead, the goods must be itemised in the receipt as for example “bracelet, ring, necklace”.
”Accessories” is not a sufficient description. Instead, the goods must be itemised in the receipt as for example “key ring, scarf, pendant, tie or wallet”.
“Electronics” is not a sufficient description. Instead, the goods must be itemised in the receipt as for example “mobile phone and its IMEI code, computer or system camera”.
4. Obtaining the Sales Receipt:
Ensure that the sales receipt you receive includes all the necessary information, including:
- Your name, passport number, and residence information.
- The retailer’s name, address, and business ID.
- Detailed descriptions of the purchased goods.
- Total price paid, including VAT.
- VAT refund amount and details.
5. Sealing and Securing Goods:
Before leaving the store, make sure the purchased goods are sealed and secured by the retailer. This ensures that the goods remain unused until they’re exported from the EU. The seal should be identifiable and intact when you present your goods for inspection during the refund process.
6. Customs Inspection and Stamping:
When departing Finland, go to the customs desk at the departure port or airport with your sealed goods, VAT refund form, and passport. Customs officials will inspect the goods to verify their condition and ensure they are unused. They will stamp your VAT refund form, confirming that the goods are eligible for a refund.
7. Choose a Refund Option:
You have two options for receiving your VAT refund:
- Retailer Refund: Some retailers offer on-the-spot VAT refunds. You present your stamped VAT refund form to the retailer, and they’ll refund the VAT amount minus any service charges.
- Refund Service: Alternatively, you can use an authorized VAT refund service provider at the airport. They will validate your stamped form and process the refund, either through cash or credit card.
8. Keep Documentation:
Hold onto your stamped VAT refund form and the original sales receipt, as you might need these documents to prove that the goods have left the EU and for any potential customs queries in your home country.
9. Note Special Cases:
Keep in mind that if you’re a Finnish citizen living permanently outside the EU, you may also be eligible for a VAT refund when visiting Finland for a specific duration. Different rules apply in this case, so make sure to provide any necessary documentation, such as work or residence permits.
In summary, if you’re a tourist visiting Finland, you can take advantage of the VAT refund scheme to reclaim the VAT paid on eligible goods that you plan to export outside the EU. Remember to shop at participating stores, fill out the necessary forms accurately, get your goods sealed, and present them for customs inspection. Choose your preferred refund option and retain your documentation for your records. By following these steps, you can make the most of your shopping experience in Finland while enjoying the benefits of VAT refunds.
How to Claim Vat Refund at Helsinki Airport
Global Blue –
If you have Global Blue Tax Free Forms, you can have your form stamped at their refund points. If the Global Blue office is closed, Customs will provide the stamp.
For goods to be checked in: Before you check in for your flight, go to the Global Blue refund point (Terminal 2 Arrivals Hall 2B), with your Tax Free Form, passport, shopping receipts and goods to have your form validated. Goods must be unused or they can refuse to validate your form. After stamping of your forms you can get your payment at the refund office next to Gate 29 or 34.
For goods in your hand luggage: Go to the Global Blue refund office next to Gate 29 or 34 for validation and payment.
Premier Tax Free –
As of 2017, Premier Tax Free is now represented at Helsinki Airport. For goods purchased in Finland for personal use Premier Tax is able to provide instant electronic approval.
- Before check-in go to Premier e-Taxfree refund point at the main departure hall in terminal T2
- Present receipts, passport and goods
- Check-in and get your boarding pass
- Return to the Premier e-Taxfree desk and show your boarding card
- Get your instant Cash Refund
If the Premier Tax Free office is closed, you must get your stamp from Customs and mail your Tax Free Forms back to the company.
Remember this cardinal rule – No Customs stamp = No refund!
Sources: Vero.fi (Finish Tax Administration)