FINLAND VALUE ADDED TAX (YF)

TAX CODE: *YF*
TAX TYPE: *001*
TAX NATURE: *GO*

Tax definition:

Collected on the applicable domestic fare, taxes, fees and charges incl. YQ/YR fees on all tickets and EMD, for wholly domestic transportation or for domestic transportation in connection with international travel.

Application description:

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.
 

Clarification on the Application of YF – Calculation on Through Fares

To ensure a consistent application and understanding of the methodology to be applied for the calculation of domestic VAT when a through fare is applied, the TTBS (IATA Ticket Tax Box Service) has been advised by Finnair (AY) that effective for tickets issued on/after 06 April 2017 for travel on/after 06 April 2017, the Finland Value Added Tax (YF) 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.

Finland – Value Added Tax – YF

The TTBS has been advised by Finnair (AY) that effective for tickets issued on/after 08 June 2018 and for travel on/after 08 June 2018, the Value Added Tax (YF) has been amended as follows:

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 box and the tax box of the domestic ticket must be marked EXEMPT YF.

More information available in Amadeus (FQN TAX/FI/YF)

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