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Customer Bulletin
www.tulli.fi
November 2008
5
Temporary Tax-free Use of Motor Vehicles in Finland
Temporary tax-free use of motor vehicle means that a vehicle is used temporarily free of car tax or free
of customs duty and value added tax (VAT).
Temporary use free of car tax is based on the Finnish Car Tax Act. The provisions concerned are
applied to both vehicles imported from the EU territory and those imported from outside the EU.
Vehicles coming from outside the EU are also subject to the Community legislation on temporary
use free of customs duty and VAT. This guide contains information on the conditions of temporary
taxfree use both according to the Car Tax Act and the Community legislation.
1
Temporary use free of car tax
1.1
Right of person not permanently resident in Finland to temporary tax-free use of motor vehicle
A person permanently resident outside Finland may, on certain conditions, use a motor vehicle in
Finland without having to pay car tax. The extent of the right to tax-free use depends on whether
the vehicle has been imported for own use (a so-called tourist car) or whether it is used for business
purposes.
1.1.1
Use of vehicle for tourism purposes
When a private person permanently resident in some other state than Finland imports a vehicle into Finland temporarily free of car tax for his own need the vehicle is considered as a so-called tourist
car (see section 1.1.2 “Use of foreign-registered vehicles for business purposes”). The vehicle may be
used in Finland temporarily without having to pay car tax on the following conditions:
•The vehicle is registered outside Finland, and the registration is valid.
•The vehicle is allowed to be used for not longer than six months, continuously or interruptedly,
during a period of twelve months.
•The use of the vehicle is not connected with purchasing the vehicle to Finland.
When used in Finland, the vehicle shall be covered by a motor liability insurance valid in Finland.
The conditions of temporary exemption from car tax are the same for persons coming from the territory of the European Union and for those coming from outside the Union.
Customer Bulletin No. 5, National Board of Customs, November 2008
Provisions on time limits
On application, a Customs District can extend the time limit of six months set for tax-free use by at
most one year and determine the conditions of the extension. The application for the extension shall
be lodged at the customs office closest to the applicant´s place of stay before the expiry of the sixmonth period.
A person who upon his arrival intends to stay in Finland for more than six months shall contact a
customs office for finding out about the right to use the car involved. If necessary, Customs Districts
give guidance in making the application for an extension of the time limit.
Once the time limit has been extended, the vehicle may be used in Finland again not earlier than after
six months from the expiry of the extension.
The time limit explained above in section 1.1.1 is not applied to the vehicle registered abroad of a
person permanently residing abroad but working in Finland, if he leaves Finland regularly with the
vehicle for his place of residence in another country.
The time limit is not either applied to a vehicle which is registered abroad and imported by a person
staying in Finland exclusively for the purpose of studying at a university or other educational establishment but residing permanently in another country. However, the student shall inform the tax
authorities of the matter at the latest when the period of six months expires. Furthermore, he has to
account for his studies for each study term or at other times determined by the tax authorities.
1.1.2
Use of foreign-registered vehicles for business purposes
When a person permanently resident outside Finland brings in a vehicle registered in some other
country than Finland to be used in the business of a company situated somewhere else than in Finland, the vehicle may be used in Finland for not more than seven months. Customs Districts cannot
extend the time limit. The same also applies to a vehicle that is used in Finland in the activities of an
international organization or other corporation established somewhere else than in Finland.
1.1.3
Permanent place of residence
With a person´s permanent place of residence, a place is meant where he resides at least 185 days per
calendar year, as estimated according to his personal, occupational and other ties.
If the person stays at different places which are located in two or more states, that place where he
returns regularly for personal reasons shall be considered his permanent place of residence. When
estimating personal reasons, the nature and permanence of work in another country and other special circumstances can also be taken into account. Returning to another state is not required if the
person stays in Finland to perform a task of fixed duration. The Customs District concerned may, on
conditions which it determines and for not longer than one year at a time, give a decision notifying
in which state the person´s place of residence shall be considered to situate according to the produced
documents.
A person´s permanent place of residence is not considered to change if he stays in Finland or another
country for studying at a university or other educational establishment.
Customer Bulletin No. 5, National Board of Customs, November 2008
2
1.2
Right of person permanently resident in Finland to temporary tax-free use of motor vehicle
As a rule, a person permanently resident in Finland is not allowed, not even occasionally, to use a
foreign-registered vehicle on the road without paying car tax. There are, however, some exceptions to
this rule. In such cases a declaration of use submitted to Customs is usually required and sometimes
also a permit to transfer the vehicle.
A vehicle with a valid registration in the EEA area may be used on the basis of a declaration of use
confirmed by Customs. A valid motor liability insurance is also required.
When Customs must be informed of the use of the vehicle, the declaration must be lodged in advance or at the latest when the tax-free use is started. The declaration is submitted with customs
form No. 83.
When a vehicle does not have a valid registration in the EEA area, a transfer permit is required in
addition to the declaration of use. Transfer permits are granted by vehicle inspection stations and
Customs upon application.
Further information on transfer permit is available on the Internet sites of the Finnish Transport Safety
Agency (Trafi), www.trafi.fi.
1.2.1
Vehicles subject to car tax and intended to be registered in Finland
A vehicle which is intended to be registered in Finland may be used for at most three months without
paying taxes provided that a declaration of use on customs form No. 83 has been submitted to Customs before the use of the vehicle is started in Finland. If the vehicle does not have a valid registration
in the EEA area, a transfer permit is also needed. The declaration of use confirmed by Customs must
be kept in the vehicle when the vehicle is used (for the EEA states, see the last page). A vehicle which
has earlier been export-registered in Finland may not be used on the road in Finland without a transfer permit after removal back to Finland (for further details, see section 1.3.)
The vehicle must also have a motor liability insurance which is in force in Finland. The insurance
coverage of the Finnish insurance is in some respects more extensive than in the other EEA states.
If a Finnish motor liability insurance for the vehicle is preferred, a transfer permit must be acquired
as well.
In order to keep the right of use, the vehicle must be declared for taxation within five days from the
date when the declaration of use was confirmed. The right to tax-free use also expires on the due date
of the car tax or if the taxation procedure is cancelled.
If the taxation procedure is cancelled, a charge equivalent to that for an advance ruling of the National
Board of Customs (110 euros in 2008) is collected and, in car tax, a charge amounting to five per cent
of the car tax which should have been paid if the taxation had been completed. The car tax collected
as a result of the cancellation is not taken into account if tax is later assessed on the vehicle.
Customer Bulletin No. 5, National Board of Customs, November 2008
3
A declaration of use can be submitted for several vehicles at a time. The right of use does not cease
even though the ownership of the vehicle were transferred. However, it is to be noted that if the vehicle has a Finnish motor liability insurance, its validity expires when the ownership is transferred.
1.2.2
Business vehicles
A natural person living permanently in Finland, whose place of work is in a state other than Finland,
may on Finnish roads use a vehicle, permanently registered in that other state and owned or controlled by his employer, temporarily free of tax exclusively for purposes of his occupational tasks. The
use is considered as temporary if the vehicle is always exported back to the state of registration after
the task is completed. However, a continuous use of at most three days can be considered as temporary use. Using the vehicle for travels between the place of residence and the place of work are not
considered as use for occupational tasks.
Before taking the vehicle into use on the road, Customs must be notified of the matter with a declaration made on customs form No. 24. The customs authorities confirm the receipt of the declaration.
This confirmed declaration must be kept in the vehicle when it is driven.
1.2.3
Company cars
A company car may be used temporarily free of tax by a cross-border employee who works in a state
other than Finland, is resident in Finland and uses the car in both states. According to the relevant
provision of the Car Tax Act, a person permanently resident in Finland may, on certain conditions,
use a vehicle permanently registered abroad temporarily in Finland without having to pay car tax.
It is required that the person is employed by an employer which has a permanent place of business
outside Finland. The vehicle must be owned and controlled by the employer and registered in the
country where the employer is established. The right to use the vehicle must be based on an employment contract, e.g. as a car benefit. A motor liability insurance valid in Finland is also required.
As distinct from temporary tax-free use of business vehicles, which may be used for occupational
tasks only, company cars may also be used for private purposes.
The use of a company car is subject to a permit given by Customs. The permit must be applied for on
customs form No. 17 and can be granted for 12 months. The permit can be renewed if the applicant
continues to meet the conditions of temporary tax-free use.
It is also required that a company car in temporary tax-free use is used abroad more than in Finland.
The scope of use is determined for a period of 12 months and measured in days. If the vehicle is used
both in Finland and abroad during the same day, it is deemed to be used abroad.
The vehicle may not be put at the disposal of any other person permanently resident in Finland, including the family members of the employee. If it is intended that the family members may use the
vehicle, the vehicle must be taxed and registered in Finland.
Customer Bulletin No. 5, National Board of Customs, November 2008
4
1.2.4
Use for racing purposes
Vehicles registered in another EEA state and used for racing
A vehicle registered in another EEA state is imported temporarily to Finland only for racing purposes
for not more than 30 days and is taken out of Finland after that time limit.
•A declaration notifying that the vehicle is taken into use must be submitted to Customs on customs form No. 83.
•A transfer permit is not required for using the vehicle.
Vehicles registered outside the EEA states and used for racing
A foreign-registered vehicle is imported temporarily to Finland only for racing purposes for not more
than 30 days and is taken out of Finland after that time limit.
•A declaration notifying that the vehicle is taken into use must be submitted to Customs on customs form No. 83.
•A transfer permit is required if the vehicle is used by a person permanently resident in Finland.
Unregistered vehicles used for racing
An unregistered vehicle is used in Finland only for racing purposes for not more than seven days uninterruptedly. The vehicle need not be taken out of Finland after that use.
•A declaration notifying that the vehicle is taken into use must be submitted to Customs on customs form No. 83.
•A transfer permit is always required for using the vehicle.
1.2.5
Other cases of temporary tax-free use of vehicles
According to the Car Tax Act, there are nine groups of cases in which temporary tax-free use of a vehicle may be applied.
In most cases a declaration of use (customs form No. 83) must be submitted to Customs but there are
also exceptions. In addition, a vehicle imported from outside the EU must be placed under the relevant customs procedure.
Customer Bulletin No. 5, National Board of Customs, November 2008
5
Declaration of use to Customs is required in the following cases:
1. A person permanently resident in Finland imports a vehicle temporarily only for service, repair
or other operations.
2. A vehicle not intended to be registered in Finland is imported or taken into use temporarily and
used only for
•
•
•
•
•
trial
research
type inspection
type approval or
demonstration of short duration.
3. A vehicle imported from abroad is moved from the place of importation to some other place in
Finland or to the place of exportation without it being registered in Finland.
4. A vehicle not registered in Finland is moved for exportation from the place of delivery to the place
of exportation.
5. A vehicle equipped with temporary number plates is moved, the holder of the temporary number
certificate or his representative being present in the vehicle, for purposes
•directly connected with testing for research or product development concerning the vehicle
of the holder of the temporary number certificate or concerning the vehicle’s equipment
•
of test driving of the vehicle to get assured of its technical functioning
•
of short-term sales demonstration to a buyer permanently resident outside Finland
• directly connected with other manufacturing, putting up for sales, exportation, repair or technical inspection of the vehicle.
Use allowed without declaration to Customs
A person permanently resident in Finland may drive a vehicle imported temporarily free of tax over
short distances for service, repair or other similar purpose if the importer permanently resident outside Finland is occasionally prevented from driving the vehicle himself.
The right to temporary exemption from car tax is also held by a person studying abroad for at least
185 days per year and visiting Finland for a reason to be considered as compelling under the prevailing circumstances or for an ordinary holiday trip or a similar short stay. A stay not exceeding 72
days is normally deemed to be a short stay.
1.3
Temporary tax-free use of export-registered vehicles
As a rule, a vehicle export-registered in Finland may not be used in Finland before exportation but it
may be transferred for exportation from the place of delivery to the place of export. The vehicle may
also in connection with the owner´s removal abroad be driven to the place of residence of the owner
and further to the place of exportation.
A vehicle entered in the export register in Finland may be used in Finland occasionally for a reason
to be considered as compelling or for an ordinary holiday trip or a similar short stay. This provision
has been interpreted so that the vehicle may be used in Finland for at most 72 days. It is required that
the customs authorities are asked to enter the dates of arrival and departure of the vehicle in the export registration documents.
Customer Bulletin No. 5, National Board of Customs, November 2008
6
If an export-registered vehicle is used in Finland during one month immediately after removal from
Finland or immediately before removal back to Finland, both a declaration of use to Customs (form
No. 83) and a transfer permit are required.
1.4
Prohibition to transfer vehicle
A vehicle which has been imported temporarily free of car tax may not be sold, hired out or otherwise transferred, nor may it be allowed to be used by a person residing permanently in Finland, unless car tax has been paid for the vehicle or unless the tax liability has been transferred as prescribed
in Section 4 of the Car Tax Act. Notwithstanding what has been said above, a damaged vehicle may
be transferred to an insurance company. This kind of vehicle may not be put into use or registered in
Finland, unless the person using or registering it pays car tax for it.
The vehicle may be used by its importer and by the members of his family residing permanently
abroad as well as by other persons who themselves would have been or would be entitled to import
a vehicle from abroad for temporary use.
However, the steering of the vehicle may be entrusted to another person when the vehicle’s possessor
permanently resident outside Finland is present in the vehicle.
1.5
Taxable vehicles according to the Car Tax Act
According to law, taxable vehicles are passenger cars, delivery vans, other motor cars with unladen
weight of less than 1 875 kg, motorcycles (of categories L3e and L4e) and certain three- or fourwheeled motor vehicles (L5e and L7e ). (The complete classification is included in the Vehicle Act
1090/2002.)
1.6
Vehicles receiving the status of removal goods after temporary tax-free use
The Car Tax Act also contains provisions on tax reduction for vehicles imported into Finland as part
of removal goods, see Customer Bulletin No. 8, Importation of Personal and Household Effects and
Private Motor Vehicles as Removal Goods into Finland, of Finnish Customs. A person moving from
abroad to Finland and settling down as a permanent resident has, on certain conditions, the right to
bring in a vehicle as removal goods.
>> The customer bulletins of Finnish Customs are available on the Finnish Customs website
www.tulli.fi > In English > Finnish Customs > Publications > Customer instructions
A person who has stayed in Finland temporarily before settling down permanently is also entitled to
the tax reduction if certain requirements are met (for the requirements, see section 5.4.1 of the abovementioned Customer Bulletin No. 8). This means that in certain cases the vehicle he has used in Finland temporarily free of tax may receive the status of a vehicle imported as removal goods. It is required that the person has stayed abroad uninterruptedly for at least one year immediately before arriving in Finland. He shall also have had the vehicle abroad under his ownership or in his possession
under conditions leading to ownership and in his use for at least six months immediately before his
arrival in Finland.
Customer Bulletin No. 5, National Board of Customs, November 2008
7
Arrival in Finland refers here to the date on which the person for the first time arrives in Finland for
a temporary stay. During the 12 months preceding his arrival in Finland the person shall not have
stayed in Finland otherwise than temporarily in the way referred to in the first paragraph of Section
26 of the Car Tax Act.
It is further required that the vehicle is declared for taxation as part of removal goods within six
months from the beginning of the temporary stay. If the time limit for temporary use of the vehicle
free of tax as a so-called tourist car within the meaning of the second paragraph of Section 2 of the
Car Tax Act has been extended by a written permit given by the Customs District concerned, the declaration may be lodged before the extended period expires but not later than within 18 months from
the beginning of the temporary stay.
The obligation to declare mentioned above is a precondition for tax treatment of the vehicle as removal goods. Thus a vehicle which has been used in Finland but which has not been declared for
taxation as removal goods within the prescribed period is not considered being imported as removal
goods.
The regulations on importation of a vehicle as part of removal goods are explained in the abovementioned Customer Bulletin No. 8 of Finnish Customs.
2
Temporary use free of customs duty and value added tax
2.1
Vehicles imported from the EU territory
No customs duty or VAT is collected on vehicles which are imported temporarily to Finland from
another EU country.
2.2
Exemption from customs duty and value added tax of vehicles imported for tourist use from outside the EU territory
A vehicle imported from outside the EU for tourist use shall be placed under the customs procedure
of temporary importation in order that it can be used free of customs duty and VAT. The provisions
on temporary importation are contained in Articles 137–144 of the Community Customs Code [Regulation (EEC) No. 2913/92] and in Articles 553–584 of the provisions for the implementation of the
Code [Regulation (EEC) No. 2454/93, as amended by Regulation (EC) No. 993/2001].
For exemption from customs duty and VAT, it is required that the time limits for closing the temporary importation procedure are observed. The time limits for vehicles in private use are:
•students: the period for which the student stays in the customs territory of the Community only
for studies
•persons performing tasks of fixed duration: the period for which the person stays in the customs
territory of the Community only for performing the task
•other persons: six months.
Customer Bulletin No. 5, National Board of Customs, November 2008
8
The time limit for closing the procedure means, as a rule, the period within which the vehicle must
be taken out of the EU territory. If necessitated by exceptional circumstances, the customs authorities
may extend the time limit upon request. In that case the person concerned shall contact the customs
office before the expiry of the period. Private use of vehicle means use for other than commercial
purposes.
It must be noted that the vehicle can be in the customs territory only at the same time as the person
who has received the authorization to temporary importation. If the holder of the authorization
leaves the customs territory temporarily without the vehicle, another customs-approved treatment
must be assigned to the vehicle for the time of his absence and the running of the time limit is interrupted.
For the purposes of the temporary importation procedure, leaving the customs territory in this way
without the vehicle must, however, be occasional and only a short episode within the intended temporary stay in the customs territory. It is required, for instance, that the traveller must return under
the same visa when he makes short visits out of the customs territory. By contrast, the purpose of the
law is not fulfilled if the vehicle is left in the customs territory as if being deposited under another
customs-approved treatment whereas the holder of the authorization returns to his permanent place
of residence and later comes back to Finland, e.g. for a further holiday the following year.
NOTE! A tourist car imported into Finland is always subject to the provisions on temporary tax-free use of vehicle
contained in the Car Tax Act. When the vehicle is imported from outside the EU territory, the above-mentioned provisions on temporary importation procedure contained in the Customs Code and the implementing provisions are also applied. Owing to differences in the provisions, there may be situations where a tourist car may be used free of car
tax but not free of customs duty and VAT or vice versa. Further information is available from the Customs Information
Service.
2.3
Vehicles brought in from the Åland Islands
Åland is not covered by the VAT territory of the EU. Therefore vehicles imported from Åland to other
parts of Finland are, as appropriate, subject to the same provisions as vehicles brought into Finland
from outside the EU. Such provisions are e.g. the time limits on importation. Furthermore, vehicles
brought in from Åland may not be used elsewhere in Finland by any person other than one permanently resident in Åland or outside the EU territory.
3
To be noted in connection with tax-free use
3.1
Right to temporary tax-free use is proved by documents
In a control situation, a tourist or any other person using a vehicle which has been temporarily exempted from tax shall prove by documents the right to temporary tax-free use of the vehicle. For
example, a certificate stating the permanent place of residence abroad may be required. If he hands
over the vehicle to be used by another person having legal right to use it, the latter person must have
documents proving the right to temporary tax-free use of the vehicle.
Customer Bulletin No. 5, National Board of Customs, November 2008
9
3.2
When conditions of use cease to be fulfilled or time limit expires
If the conditions of temporary tax-free use cease to be fullfilled or the time limit expires, the vehicle
shall either be exported, moved to a free zone or other place decided by the authorities, destroyed
under the supervision of the authorities, or abandoned to the state without causing expenses to the
latter. Otherwise, tax shall be paid for the vehicle.
3.3
Consequences of non-compliance
The use of a vehicle can be prevented if it is noticed that the vehicle is used contrary to the above
provisions, and it can be taken off the road. The procedure is the same if the vehicle is not exported
from the country within the time limit. Non-compliance with the provisions may also lead to imposing increased taxes or even to prosecution for tax fraud.
4 Enquiries
Further information on importation, customs clearance and car taxation of removal goods and the
necessary documents is obtainable from the Customs Information Service, tel. 020 690 600. The information service also answers enquiries on the Internet at www.tulli.fi. Texts of acts and decrees
(in Finnish and Swedish) can be bought at Edita Oyj and its bookshops. The texts are also available
online at www.finlex.fi.
>> Car taxation forms are available on the Finnish Customs website
www.tulli.fi > In English > Businesses > eServices > Forms
Customer Bulletin No. 5, National Board of Customs, November 2008
10
Service contacts
Opastinsilta 12, 00520 Helsinki
PO Box 512, 00101 Helsinki
Car tax
tel. +358 295 5203 (from 8 a.m. to 4 p.m.)
Customs Information Service
tel. +358 295 5201 / Private customers, tel. +358 295 5202 / Business customers (from 8 a.m. to 4 p.m.)
fax +358 20 492 1812
Written enquiries can be sent using the enquiry form available at
www.tulli.fi/en > Contact us > Enquiry form
Statistics Service
tel. +358 295 52 335 (from 9 a.m. to 3 p.m.)
[email protected]
Written enquiries can be sent using the enquiry form available at
www.tulli.fi/en > Contact us > Statistics Service´s enguiry and order form
Tip-off hotline 0800 1 4600
Call charges to Customs numbers > www.tulli.fi/en > Contact us
www.tulli.fi
The EU countries are Austria, Belgium, Bulgaria, Croatia, Cyprus, the Czech Republic, Denmark,
Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta,
the Netherlands, Poland, Portugal, Romania, the Slovak Republic, Slovenia, Spain, Sweden and
the United Kingdom.
The EEA countries are the EU countries, Iceland, Liechtenstein and Norway.
Do ask questions!
We at Finnish Customs are happy to provide
further information.