Finland value added tax (YF)

When VAT is applied

Whenever the transportation is subject to the domestic VAT, the VAT is to be calculated on the applicable domestic fare including the domestic passenger taxes, fees and charges including YQ/YR fees.

The domestic VAT is collected during sale and shown in the ticket tax box with the code of YF. Also, to be shown on the sales receipt/invoice.

Effective for tickets issued and travel on/after 1 October 2016, the application of the YF in the calculation on Through Fares should be considered as follows:

• The VAT also applies to the domestic portion of international through fares, whenever a stopover of more than 24 hours exists at the Finnish gateway point (domestic to international as well as on international to domestic).
• When a fare break does not exist at such connecting gateway point in the fare construction, apply mileage proration to establish the domestic taxable fare.

Examples:

• OW journey PAR–HEL–OUL assessed as having a Published through fare PAR–OUL (Stopover more than 24 hours at HEL): Use mileage proration to establish the value of the HEL–OUL transportation for the purposes of assessing the VAT.
• RT journey PAR–HEL–OUL–HEL–PAR assessed as having a Published through fare PAR–OUL–PAR (Stopover more than 24 hours at HEL both ways): Use mileage proration to establish the value of the HEL–OUL and OUL–HEL transportation for the purposes of assessing the VAT.

Application of VAT on Through Fares

Value Added Tax (YF tax code) is amended as follows:

• The VAT also applies to the entire domestic portion (from the first Finnish point to the Finnish gateway and from the Finnish gateway to the last Finnish point) of international through fares, whenever a stopover of more than 24 hours exists either
  • at the Finnish gateway or
  • at any other intermediate domestic point on the international through travel (domestic to international as well as on international to domestic). If such a stopover exists but there is no fare break at the Finnish gateway and/or other domestic points in the international fare construction, then apply mileage proration to establish the domestic taxable fare portion.

Examples:

Domestic to International Travel

1. OUL – HEL (Stopover) – PAR

• Apply VAT to the entire domestic fare portion OUL–HEL.
• Apply VAT to the other Finnish taxes, fees and charges, and YQ/YR fees applicable on the itinerary.

2. OUL – X/HEL (Transfer) – PAR

• No VAT applies to the fare.
• No VAT applies to the other Finnish taxes, fees and charges, and YQ/YR fees applicable on the itinerary.

International to Domestic Travel

1. PAR – HEL (Stopover) – OUL

• Apply VAT to the entire domestic fare portion HEL–OUL.
• Apply VAT to the other Finnish taxes, fees and charges, and YQ/YR fees applicable on the itinerary.

2. PAR – X/HEL (Transfer) – OUL

• No VAT applies to the fare.
• No VAT applies to the other Finnish taxes, fees and charges, and YQ/YR fees applicable on the itinerary.

Domestic travel within Finland

VAT applies for domestic travel when itinerary includes only domestic flights within Finland.

Exemption for all airports:
Domestic flights in direct combination with international scheduled flights – with the first international scheduled flights – with the first available connection within 24 hours.

If separate tickets are issued, the domestic ticket must include international ticket number in the endorsement (FE line). In this case the domestic ticket can be priced without VAT.