These practices and laws changes during the summer

During the summer, there will be a few changes that entrepreneurs should be aware of. We compiled a list of changing practices and laws.

Competition law will be monitored more effectively since midsummer

There are changes to the Competition Act, which are mainly based on the EU Directive. It strengthens and harmonises the capacity of Member States’ competition authorities to enforce EU competition rules. The aim is to ensure efficient competition between companies in the EU internal market. In Finland, the changes expand the Finnish Competition and Consumer Authority’s powers related to restrictions on competition.

The Act entered into force on June 24, 2021, once it was approved by the President of Finland.

You can read the main changes in the Competition Act based on the EU directive here

Changes in VAT in online shopping

EU VAT policy is changing, simplifying international e-commerce. Instead of having to register as a taxable person in each EU country to which she sells her products, she can register for a special scheme in one EU country.

This One Stop Shop registration will take effect on July 1st, and can be handled through OmaVero.

Until now, the special schemes have only covered VAT on telecommunications, transmission, and electronic services. In the future, the special scheme will cover all services.

The EU is also moving away from VAT thresholds, which will make it easier for smaller businesses to sell online. If the entrepreneur’s sales to other EU countries do not exceed 10,000 for two consecutive years, he or she may in future pay VAT on consumer trade in his or her home country instead of paying it to each country separately. In the past, EU countries have had Member State-specific distance selling thresholds, which are now being dropped.

These small businesses also do not need to register for the One Stop Shop system.

Read the Tax Administration’s instructions on the special systems of the VAT system.

The tax exemption for shipments of 22 euros will be abolished

The limit of 22 euros for tax-exempt online purchases will be removed 1.7.2021. VAT is currently not paid if the value of goods imported from outside the EU does not exceed € 22. In the future, all imports will be subject to VAT. The change will improve the competitive position of EU companies by creating a more equal competitive environment for domestic companies.

Remember to apply for tax relief by 31.8.

Tax payment arrangements will be eased due to the Covid-19 crises, same as last year. Taxpayers who have a valid payment arrangement can also apply for a payment arrangement with eased terms, the new payment arrangement may also include taxes that were not included in the previous arrangement. A new payment arrangement can be made for a maximum of two years.

Cultural benefits are expanding

The cultural benefit that an employer offers to its employees is expanding into virtual events and trade fairs. Suomen Yrittäjät supported the government’s bill and proposed a review of the definition of sports or cultural activities. Parliament therefore approved the extension of the scope of the employee’s tax-free benefit to sports and cultural fairs. These are good changes, especially for cultural and entertainment actors affected by the corona.