Background
When Åland joined the EU in 1995, its accession was accompanied by certain exemptions from the application of EU Legislation aimed at securing the autonomy and local economy of the islands. According to the Åland Protocol in the Finnish Act of Accession to the European Union Åland is excluded from the application of the EU directives in VAT and excise duties. As a result, Åland is part of the EU customs territory, but not included in its fiscal territory.
Thus, a tax border exists between Åland and mainland Finland as well as between Åland and other EU countries. Export procedures apply for the sales and transportation of goods between Åland and the EU fiscal territory as Åland is considered a third territory. The regulations based on the Åland exceptions and VAT rules relating to the import/export of goods are implemented in the exportation of goods to Åland from other EU member states or from states outside the EU territory as well as in the importation of goods from Åland to other EU member states.
Postage constitutes a payment for transport and is therefore treated as any other transport to/from a state outside the EU territory and will be invoiced without VAT.
There are some member specific rules in force concerning for example production and material, please contact our sales team to learn more about the implications specific to your organization. Contact us today.
Links about VAT and the special status of the Åland Islands
The Finnish Tax Administration-Momsbeskattning av tjänster fr.o.m. 1.1.2010 (Swedish)
The Finnish Tax Administration-Palvelujen arvonlisäverotus 1.1.2010 (Finnish)
EU Directive on the common system of VAT (2006/112/EC)
