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Finland Implements VAT Exemption for Defense Forces Considering NATO Membership — Orbitax Tax News & Alerts

Finland has published Law 835/2023 of 25 May 2023 in the Official Gazette, which amends the Value Added Tax Act considering Finland's NATO membership. Finland joined NATO on 4 April 2023 and, as a result, VAT changes are required in relation to defense activities carried out within the framework of the NATO defense alliance. This includes a VAT exemption on sales of goods and services in Finland to the defense forces of other NATO countries, as well as an exemption on imports of goods into Finland under certain conditions. Law 835/2023 entered into force on 26 May 2023.