Mar 4 • 18:00 UTC 🇫🇮 Finland Ilta-Sanomat

The Tax Authority Strikes a Popular Hobby – Now It is Wondered Why Ice Swimming is Not Considered Sport, but Darts, Billiards, and Bowling Are

A tax regulation change in Finland has upset entrepreneurs in the ice swimming and sauna business, as they now face a higher VAT rate compared to other sports activities.

A recent update by the Finnish Tax Administration has raised eyebrows among entrepreneurs managing ice swimming and sauna venues. Under this new regulation, these businesses are no longer eligible for the reduced VAT rate of 13.5%, and are instead subjected to the full rate of 25.5%. This decision has come as a shock to entrepreneurs like Samuli Taskila, who runs a facility by Lake Littoinen in Turku, as they feel the updated tax guidelines are both unfair and damaging to their industry.

The entrepreneurs are particularly concerned about the inconsistency in the classification of sports activities, noting that while their ice swimming and sauna operations are not classified as sports, other activities such as swimming pools, spas, darts, billiards, and bowling enjoy the benefits of reduced tax rates. This disparity has drawn criticism, as it highlights perceived inequalities within the regulations, potentially leading to financial strain for those in the ice swimming sector. Taskila has pointed out that the tax hike could result in an additional cost of approximately 150,000 euros for his business, should he not pass those costs onto customers via ticket prices.

The conversation around this tax change has ignited discussions on the recognition of various leisure activities and their classification in terms of taxation. The entrepreneurs are seeking fair treatment under the tax code and are advocating for the recognition of ice swimming as a legitimate sport, hoping to promote both their industry and the health benefits associated with this growing trend in Finland. They are calling for a reevaluation of the criteria used to determine what constitutes a sport in order to align with contemporary practices and public participation trends.

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