Sanoma denied appeal by Supreme Administrative Court over €20 million VAT penalties

Media company Sanoma has been denied permission by the Supreme Administrative Court to appeal against its VAT penalties. The company faces €20 million in back taxes from 2021, which arose from its practice of routing magazine deliveries through Norway to evade VAT obligations. Reports from 2020 indicated that the government has missed out on millions in VAT revenue from magazines since 2015.

Several publishers, including A-lehdet, Otavamedia, and Sanoma Magazines, were involved in this distribution scheme. Magazines were sent to Norway, where addresses were added, and the packages were then returned to Finland for mailing to subscribers. According to the tax authority, the aim of this “magazine relay” was to avoid taxation.

In total, Sanoma has ended up paying approximately €25 million, which includes tax increases and interest, due to penalties for the years 2015 to 2018. Sanoma has also been assessed for taxes related to the years 2019 to 2021, but this matter is still under review.