International trade and customs formalities

Åland in the EU and a third territory

Through Finland, Åland is a member of the EU and belongs to the customs union, but is outside of the EU's fiscal territory. For tax purposes, Åland is therefore considered a third territory when trading with the rest of the EU – in everyday language we say that Åland has a tax border with the rest of Finland and the EU. This means that when goods are traded across Åland's borders, customs formalities must be dealt with, among other things.

Goods trade between Åland and EU countries

Åland being outside of the EU fiscal territory, trade between Åland and EU countries is foreign trade. In foreign trade, export sales are tax free. Therefore, a company in the EU that delivers goods to Åland must invoice the Åland consignee without VAT (0 %), and the Åland consignee pays the taxes upon import.

The EU company selling to Åland has to submit an export declaration to the customs authority in the country of export. The Åland consignee submits an import declaration and pays the taxes on import. This works in both ways.

Intra-Community trade

Åland being outside of the EU fiscal territory, Åland companies can't generally use their VAT number when trading with other EU countries: goods crossing Åland's borders is foreign trade.

However, even Åland companies can engage in intra-Community trade with their Finnish VAT number when the goods are located in the EU fiscal area and transported to or from mainland Finland.

Counselling

The Åland Chamber of Commerce tax border office, Skattegränskontoret, offers free of charge counselling on customs clearance and trade with Åland.

Please note that the free of charge tax border advice on the Åland tax border provided by The Åland Chamber of Commerce is not personalised tax advice but a general information service. The Åland Chamber of Commerce does not guarantee the accuracy, completeness or usefulness of the information provided within the framework of the tax border advisory. The Åland Chamber of Commerce is not responsible for the results of the information provided. The user of the information service understands that the application of the information provided depends on several factors, including the user's own behaviour and decisions. The user understands and accepts that all decisions based on the information provided are the user's own responsibility. If the user wishes individual tax or tax border advice, the user needs to contact the Finnish Customs, the Finnish Tax Administration or a professional tax advisor.