A significant tax evasion scheme involving used car dealerships in Finland has emerged, threatening the market for both new and used vehicles.
The automotive industry in Finland is currently facing a major scandal regarding widespread tax evasion practices among various used car dealerships. Early in the year, a report by Moottori magazine uncovered these suspicious activities, leading to a formal confirmation from the Finnish Customs on March 5, which highlighted the serious nature of the allegations. These dealerships are implicated in what is known as margin tax fraud, where the value-added tax (VAT) on product sales is calculated based on the profit margin instead of the full selling price, allowing them to evade VAT obligations that would normally apply.
