- A is a joint forest under the Joint Forest Act for sustainable forestry for its shareholders
- Forest owners joining A receive shares corresponding to the value of the forest property added
- Transfer of joint forest shares follows real estate sale rules
- A’s income is 90 percent from taxable timber sales and 10 percent from tax-exempt activities like renting fields
- A has the right to deduct VAT on expenses directly related to taxable timber sales
- Real estate sales and field rentals are tax-exempt activities with no VAT deduction rights
- Transfer of joint forest shares is considered a tax-exempt financial service with no VAT deduction rights
- General expenses related to A’s administration are partially deductible based on the proportion of taxable activities
- The advance ruling is valid from January 29, 2025, to December 31, 2026
Source: vero.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.
