Digital remote tax control was tested successfully in tax audits.
From a world of binders to the digital era
The world is going digital – and tax audits are keeping pace. The Tax Auditing Unit of Northern Finland began a trial of remote e-commerce control – and this has proven to be so successful that we want to expand it to other types of tax control.
VAT control of distance sellers safeguards the competitive position of Finnish merchants
We have stepped up efficiency in the VAT registration of online vendors in the EU. If the value of goods sold to Finns by a distance seller exceeds €35,000 per year, the seller is liable to pay VAT and must enter the Finnish VAT Register.
As part of a project examining the risk phenomena in international taxation, the Tax Administration has been carrying out a project focusing on e-commerce; in future, this project will continue as an e-commerce tax control function. Among other measures, tax control identifies online vendors in the EU that are obliged to pay VAT on their sales to Finland, but do not do so. The Tax Administration registers these vendors as liable to pay VAT. It is expected that the tax impacts of these registrations will amount to millions of euros per year in the years to come.
Tax control of cryptocurrencies is enhanced
Cryptocurrencies are a focus area in the tax control of e-commerce. The Tax Administration analysed and identified tens of thousands of bitcoin wallets and found that many of the owners had not filed capital income from increases in cryptocurrency exchange rates. Taxes were collected in several hundred of these cases. The taxes totalled millions of euros.