Avance represented a company in the Supreme Administrative Court's (SAC) preliminary ruling SAC 2026:7 concerning the VAT treatment of the sale of civil defence shelter rights (Fi: väestönsuojapaikkaoikeus).
In the case, the company was constructing a parking facility, which also serves as a civil defence shelter in emergency conditions. In order to fulfil their obligations regarding the construction of civil defence shelters as set out in the planning regulations, other property owners in the area purchased civil defence shelter rights from the company, which entitled them to allocate civil defence shelter spaces to the parking facility owned by the company, and freed them from building civil defence shelters on their own properties. The company charged a one-time payment for the civil defence shelter rights and a continuous maintenance fee.
In its decision, the Supreme Administrative Court confirmed that the transfer of civil defence shelter rights and the maintenance of civil defence equipment for consideration constitute sales of services in the course of business, on which VAT must be paid. The company has the full right to deduct VAT on the investments made for the taxable sale of civil defence shelter rights and on the goods acquired for the maintenance of civil defence shelters.
As there was no previous case-law on the matter, the ruling provides clarity and establishes precedent regarding the VAT treatment of civil defence shelter rights.
For more information, please contact Sebastian Kellas and Janina Järvi.