New rules increase buyer liability for excise duties on online alcohol purchases starting in September

By admin On Aug 26, 2024

Red wine in a glass. LEHTIKUVA

Starting September 1st, 2024, individuals ordering alcohol online from international sellers may face increased responsibility for paying excise duties on their purchases. This change comes as a result of new legislation passed by the Finnish Parliament, aiming to ensure that the correct taxes are paid on alcohol products entering Finland.

Previously, the responsibility for excise duties primarily fell on the seller when they arranged or assisted in the transportation of alcohol products to buyers in Finland.

However, with the new amendment, buyers may also be held liable for these duties, even if the seller is involved in the shipping process.

Joint Liability for Excise Duties

Under the updated regulations, both the buyer and the seller can be jointly liable for excise duties if the seller does not meet their obligations. According to Senior Tax Specialist Piia Lax from the Finnish Tax Administration, the seller remains responsible for submitting an advance notice to the Tax Administration and paying a guarantee that covers the excise duties on the products. However, if the seller fails to do so, the Tax Administration will issue an excise duty decision to both the seller and the buyer, requiring payment from both parties.

This new measure addresses concerns that many online stores selling alcohol do not currently pay excise duties to Finland, leaving the government with a significant loss in potential tax revenue.

Buyer’s Sole Responsibility if Arranging Transport

If a buyer independently arranges the transport of their alcohol purchase without any involvement from the seller, they alone are responsible for paying the excise duties. In such cases, the buyer must submit an advance notice and pay the corresponding guarantee through MyTax, the online service provided by the Finnish Tax Administration.

Potential Cost Increases for Consumers

Consumers are urged to be cautious when ordering alcohol online from foreign sellers, as there is no way to verify in advance whether the seller has fulfilled their tax obligations in Finland. If the seller does not pay the necessary excise duties, the buyer may be required to do so, potentially doubling the cost of their order. For example, a 24-can case of beer purchased for €13.90 could end up costing €31.08 after excise duties are applied.

New Requirements for Transport Carriers

The new regulations also introduce a requirement for transport carriers to have an excise duty identifier, which must be provided by the party liable for the duties—either the seller or the buyer. This identifier, available in MyTax, must be presented to Finnish Customs or the Tax Administration upon request during transport, ensuring that all excise duties have been properly paid.

The legislative change aims to improve compliance with Finland’s excise duty laws and reduce the number of untaxed alcohol shipments entering the country. Consumers are advised to be aware of the new rules and their potential financial implications when ordering alcohol online from abroad.

Source: www.helsinkitimes.fi