The VAT Refund System for Tourists in Finland

1. Eligibility:

A tourist visiting Finland is eligible for a VAT refund if they are a non-EU resident, who resides outside of the EU, and have received goods in Finland that are intended for personal use outside of the EU.

2. Minimum Purchase Amount:

In order to qualify for a VAT refund, the total purchase amount (including VAT) from a single retailer must be at least 40 euros. This amount does not include services, such as accommodation or meals.

3. Retailer Participation:

Select retailers or shops in Finland participate in the VAT refund system. Look for signs displaying "Tax-Free Shopping" or "Global Blue" logos indicating their participation in the refund scheme.

4. Requesting VAT Refund Form:

At the time of purchase, inform the retailer that you are a tourist and would like to receive a VAT refund. The retailer will provide you with a VAT refund form or a tax-free shopping form.

5. Completing the VAT Refund Form:

Fill out the VAT refund form completely and accurately. Provide your personal information, passport number, details of the purchases made, and the retailer's information. Make sure to sign the form as well.

6. Validation of VAT Refund Form:

Before leaving Finland, present the VAT refund form, along with the purchased goods and receipts, to the customs officer at the last EU departure point. This could be at the airport, seaport, or land border control.

7. Customs Officer Validation:

The customs officer will examine the goods, verify the completed VAT refund form, and stamp it if everything is in order. This validates the refund form for further processing.

8. Refund Processing:

There are two options for processing the VAT refund:

• If the retailer has an in-store refund service, you can receive an immediate refund in cash, credit card refund, or a refund to your Alipay or WeChat Pay account. They will retain a commission fee for the service.
• If the retailer does not have an in-store refund service, you can mail the stamped refund form to the indicated VAT refund company for processing. They will transfer the refund amount to your bank account or issue a check. There may be administrative fees and processing time involved.

9. VAT Refund Amount:

The VAT refund amount is a portion of the VAT paid on the purchased goods. The exact refund percentage varies but is generally around 10-15% of the purchase price.

10. Keep Documents:

It is crucial to keep copies of all documents, including the stamped VAT refund form, receipts, and any correspondences with the refund company, until the refund is received.

Example:

A tourist from Japan visits Finland and purchases clothing worth 100 euros from a participating retailer. The retailer provides a VAT refund form to the tourist. At the airport, the tourist presents the goods, receipts, and the completed form to the customs officer, who validates the form. The tourist chooses to receive an immediate cash refund at the retailer's in-store refund service and receives a refund of 10 euros. The tourist keeps the stamped form, receipts, and a copy of the refund receipt as proof.