- Finland plans changes to VAT rules for real estate investments, including a 10-year adjustment period for input VAT deductions.
- The right and obligation to transfer deduction adjustments would be removed, following an EU Court ruling.
- When a property is sold, the remaining VAT deduction would be adjusted at once for the rest of the adjustment period.
- Certain property sales could be optionally treated as VATable to avoid tax cascading; in those cases, reverse charge would generally apply.
- The proposal is open for comments until August 14, and the law is intended to take effect on January 1, 2028.
Source: vm.fi
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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