Shopping would still be taxable, but according to the Trade Union, the Ministry of Finance’s project would simplify sales to domestic tourists.
Treasury proposes an amendment to the law that will make it easier for airport tax-free shops to open to passengers arriving in Finland and flying within the country. The exact timing of the change is not yet known.
The change in the law would not make domestic airport purchases tax-free. Currently, tax-free shops at airports can only sell VAT-free products to non-EU travelers. The products can also be sold to travelers within the EU, but in that case the sale is taxable.
Change however, it would make everyday life easier for many airport stores, says a trade expert from the Confederation of Finnish Trade Unions Toni Jääskeläinen.
He says airport shops have a tax warehouse where they can buy products for sale to tourists. Products in tax warehouses must be kept separate from products sold to domestic tourists.
“If there’s a smaller airport store, sorting goods can be tricky. Tax-free stores often decide that they only sell to foreign tourists, ”says Jääskeläinen.
According to Jääskeläinen, the problem has become more pronounced when tourism abroad and the arrival of foreign tourists to Finland have had to be restricted due to the coronavirus pandemic.
“With the change, goods would be sold taxable to domestic tourists. It would only allow the goods to be cleverly in the tax warehouse. ‘
According to the Finnish Trade Union Confederation, the relaxation of tax warehousing regulations will not cause tax losses in Finland, as the products are to be resold to domestic tourists subject to VAT.
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