In Finland, the Central Board of Taxes (CBT) has given bitcoin a VAT exempt status by classifying it as a financial service. Bitcoin is treated as a commodity in Finland and not as a currency. Furthermore, the Finnish Customs has seized 1,666 Bitcoin years ago and still holding it waiting for the regulations to permit an auction.
There are no significant blockchain projects in Finland, although the Helsinki Blockchain Center assists in any matter and the country is very permitting on the subject.
Taxes and Regulation
Taxpayer’s virtual-currency units must be treated as assets within the meaning of the act on income tax (Tuloverolaki 1535/1992 (TVL)). Any situation where taxpayers spend, realize, use or exercise their virtual-currency units is an event that causes a tax calculation to be made in order to determine the capital-gain or capital-loss amount. When calculating the changes in value, virtual currency is deemed to have been spent in the same order as it was acquired unless the taxpayer proves otherwise. To keep track of the order of a taxpayer’s spending of their virtual-currency units, the virtual accounts set up by the service platform can be relied on, but evidence of this must be presented to the tax authorities upon request.
Only crypto firms which have registered will be able to operate legally in Finland.