How to Calculate Duties and Taxes on Imports to Finland involves a structured process based on EU-wide regulations and national Finnish implementation. Import duties and taxes depend on the product’s classification (HS Code), its customs value, and its country of origin. For low-value shipments, a key factor is the separate de minimis thresholds: import duties are not charged on goods valued at €150 or less, but Value Added Tax (VAT) is always due, as the tax de minimis is €0. All customs procedures are managed by Finnish Customs (Tulli) through its modernised customs clearance system.
Customs duties in Finland are governed by the European Union’s Common Customs Tariff (CCT), which ensures uniform application across all EU member states. The duty rate is determined by the product’s classification under the Harmonised System (HS) and the EU’s integrated tariff, known as TARIC (Integrated Tariff of the European Union). This system uses a detailed 10-digit import code to specify the exact duty rate, which can range from 0% to over 10% depending on the commodity. The final duty rate is also heavily influenced by the goods’ country of origin, with preferential rates or exemptions available under the EU’s numerous Free Trade Agreements (FTAs) or Generalised Scheme of Preferences (GSP).
To accurately calculate import tax in Finland, you must first establish the Customs Value of the goods. Finland, following the Union Customs Code (UCC), uses the primary valuation method based on the Transaction Value (the price paid or payable for the goods). For the purpose of calculating import duty, this value is determined on a Cost, Insurance, and Freight (CIF) basis to the first point of entry into the EU customs territory. This means the dutiable value includes the cost of the goods, plus all freight and insurance costs incurred up to the EU border.
Once the Customs Value is established, the calculation of the total landed cost involves two main components: Customs Duty and Value Added Tax (VAT). The duty is calculated on the CIF value, but only if the shipment exceeds the duty de minimis threshold of €150. The VAT, however, is calculated on the total value, which includes the Customs Value, the Customs Duty (if applicable), and any other charges up to the destination in Finland. This is why the query 'import tax calculator Finland' must account for the fact that VAT is always due, regardless of the shipment’s value, as the tax de minimis is €0.
For businesses, all declarations are submitted to Finnish Customs (Tulli) via the new electronic customs clearance system, UTU, or the Customs Clearance Service, which is part of the national reform to comply with the UCC. Understanding how import duty is calculated in Finland is crucial for compliance and avoiding delays, especially when dealing with the special rules for low-value eCommerce shipments.
Determine the 10-digit TARIC Code: Classify your goods using the EU’s integrated tariff system to find the correct duty rate and any specific EU measures (e.g., anti-dumping duties).
Establish the Customs Value (CIF): Calculate the total value for duty by adding the cost of the goods, the cost of freight, and insurance up to the point of entry into the EU (CIF value).
Calculate Customs Duty: Apply the TARIC duty rate to the Customs Value (CIF). If the total intrinsic value of the goods is €150 or less, the duty is 0% (Duty De Minimis).
Calculate Import VAT: Apply the Finnish VAT rate to the VAT Base. The VAT Base is the Customs Value (CIF) + Customs Duty (if applicable) + any other charges (e.g., domestic freight) up to the final destination in Finland. VAT is always charged, as the tax de minimis is €0.
Shipment Value €100 (Intrinsic Value): No Customs Duty is charged (below €150 de minimis). VAT is charged on the full value (including shipping/insurance). If the seller is registered for IOSS, VAT is collected at the point of sale.
Shipment Value €200 (Intrinsic Value): Customs Duty is charged (above €150 de minimis). VAT is charged on the total value (Customs Value + Duty + other charges). A full customs declaration is required via the Customs Clearance Service.
Assuming a VAT exemption exists: The €22 VAT exemption was abolished in 2021; all imports are subject to VAT, regardless of value.
Using an incorrect HS Code: Misclassification can lead to incorrect duty rates, fines, and shipment delays. Always use the 10-digit TARIC code for imports to Finland/EU.
Ignoring the IOSS scheme: For B2C shipments under €150, failure to use the Import One Stop Shop (IOSS) means the VAT must be collected from the consumer by the carrier upon import, often resulting in an additional handling fee.
Finland adheres to the EU’s special provisions for low-value B2C imports. The Import One Stop Shop (IOSS) is a key special rule, allowing non-EU sellers to register in one EU member state (e.g., Finland) and remit VAT for all distance sales of goods up to €150 across the entire EU. This simplifies the process for the consumer, who pays the VAT at the time of purchase. Furthermore, Finland’s customs declaration system is undergoing a major reform (UTU) to centralise and modernise all customs procedures in line with the Union Customs Code (UCC).
Finnish Customs (Tulli) provides official guidance and tools, but most commercial importers use third-party 'landed cost' calculators that integrate the EU's 10-digit TARIC duty rates and the Finnish VAT rate to estimate the total cost.
Import duty is calculated by applying the specific TARIC duty rate to the Customs Value (CIF: Cost, Insurance, and Freight to the EU border). Duty is only charged on shipments with an intrinsic value exceeding the €150 de minimis threshold.
The tax de minimis threshold for VAT on imports to Finland is €0. This means VAT is always due on all commercial goods imported from outside the EU, regardless of their value.
The customs valuation basis for calculating duty is the Transaction Value, which generally corresponds to the Cost, Insurance, and Freight (CIF) value to the EU border, as per the Union Customs Code.