Estonia: “Construction services” in Finland held intra-community supply of goods subject to VAT (Circuit Court decision)
Fact that the sale took place under a construction contract does not make the sale of goods a supply of services.
The Tallinn Circuit Court held (administrative case No 3-22-1672) that the taxpayer’s provision of “construction services” in Finland was actually an intra-community distance sale of goods in Estonia subject to the 20% value added tax (VAT) rate applicable in Estonia in 2021.
Summary
A company applied a zero VAT rate to “construction services” provided in Finland, but the tax authority found that the construction contract was actually a supply of goods (foundation blocks), the place of supply of which was Estonia, and that the transaction thus constituted an intra-community distance sale of goods subject to 20% VAT.
The court agreed with the tax authority’s view that the fact that the sale took place under a construction contract does not make the sale of goods a supply of services.
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