Year: 2025

Commerce creates work and tax revenue – tax policy has not supported growth as hoped

The commerce sector is one of the pillars of economic support in Finland, as it is a significant employer, taxpayer and creator of growth. The VAT revenue generated by commerce is also nearly half of the total VAT revenue in Finland. However, the government’s tax policy has tightened the operating environment of specialty goods trade in particular and weakened its competitiveness, without the tightening being reflected in the state’s tax revenue as the government has hoped.

Domestic e-commerce will perk up as Christmas approaches – growth of nearly seven per cent in the third quarter

The sales of online stores operating in Finland increased by nearly seven per cent in July-September when compared to the same period last year, but the online sales did not increase from the previous quarter. Turbulent times in geopolitics have weakened the expectations of online retailers selling to the United States' market in particular regarding the growth of cross-border sales. As Christmas approaches, online retailers are increasingly expecting growth in domestic online sales.

The Finnish Commerce Federation thanks the Ministry of Economic Affairs and Employment for setting up a working group to solve problems caused by distance selling outside the EU 

The Finnish Commerce Federation considers it very positive that the Ministry of Economic Affairs and Employment decided to set up a working group to find solutions to the problems caused by distance selling outside the EU that have grown extremely rapidly recently. The commerce sector hopes for a clearer and fairer operating environment that benefits both domestic companies and consumers. 

VAT increase heavily affected purchasing power – tax revenue EUR 700 million below expectations

The state's budget report shows that the government’s general VAT increase last year has not produced the desired result in terms of the state’s tax revenue. In the middle of general economic uncertainty, the VAT increase was also poorly timed, weakened consumer purchasing power and was burdensome to commerce in Finland in particular. The budding growth should now be strengthened in every possible way.

Circular trade has grown rapidly - does Chinese junk also threaten the second-hand market?

As many as 66 per cent of Finns and 81 per cent of people under the age of 30 have bought second-hand products during this year. In two years, the consumer market for circular trade has grown by 56 per cent to approximately EUR 1.4 billion. At the same time, however, Chinese junk, i.e. the selection of cheap online stores outside the EU, such as Temu and Shein, has also started to block the channels of circular trade. At worst, this threatens the implementation of the circular economy in commerce.

Chinese junk will be expensive for society – we will lose tax revenue and jobs

According to the Finnish Commerce Federation’s calculations, Finland will lose a significant amount of tax revenue due to the wave of e-commerce goods arriving from outside the EU. In addition to the loss of tax revenue, distance selling outside the EU threatens the employment of domestic commerce, consumer safety and the circular economy. Solutions can be found, for example, in the monitoring of distance selling, improving consumers' purchasing power and strengthening the competitiveness of domestic commerce.

Chinese junk will be expensive for society – we will lose tax revenue and jobs

According to the Finnish Commerce Federation’s calculations, Finland will lose a significant amount of tax revenue due to the wave of e-commerce goods arriving from outside the EU. In addition to the loss of tax revenue, distance selling outside the EU threatens the employment of domestic commerce, consumer safety and the circular economy. Solutions can be found, for example, in the monitoring of distance selling, improving consumers' purchasing power and strengthening the competitiveness of domestic commerce.