Finnish Supreme Court clarifies VAT treatment of company-provided parking leases in landmark decision.

• Finnish Supreme Administrative Court Decision No. KHO:2024:106 clarifies VAT treatment of company-provided parking leases
• Taxpayer, a parking facility company, provided cost-based parking services to shareholders through mandatory subscription agreements
• Taxpayer sought clarification on whether collecting parking fees constituted leasing or transferring right to use real estate under VAT Act
• Finnish Tax Administration and Administrative Court found transactions created right to use property, not a lease
• Supreme Administrative Court reversed decision, stating collecting shareholder parking fees constituted leasing for VAT purposes
• Transferring parking spaces to shareholders was not considered a VAT-exempt rental activity.

Source: news.bloombergtax.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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