Online alcohol seller acquitted of tax evasion

The local court in Helsinki on Thursday dismissed tax evasion charges against a company selling alcohol to Finnish customers on a website in neighboring country Estonia, bringing a new twist to the alcohol sales dispute in the northeastern part of the European Union.

In the verdict the court ruled that the sale was not illegal as on the website the customer could choose the transport mode and thus it was a purchase not a distant sale. The merchant must pay Finnish level alcohol tax only if it arranges the transport to Finland.

Krista Kiuru, the Finnish minister for family affairs and social services, commented on Finnish national television that the verdict indicates regulations on distant sales are still unclear. She noted that changes must be considered, but added that due to the role of the EU she cannot give any schedule.

When Finland joined the EU, the union authorized Finland to maintain a state alcohol retail monopoly. But the EU has not allowed Finland to ban distant cross-border internet sales of alcohol as it would be against the EU principle of free movement of goods and services. Previous Finnish government gave up plans to ban such imports, after consultation with the EU commission.

Estonia reduced its alcohol tax last July, increasing the attractiveness of drinks purchased there. Alcohol tax in Finland is twice as high as in Estonia. While internet sales have been contested, visitors can bring as much as they can carry without paying tax. A business research commissioned by the Finnish brewery industry indicated that passenger imports of alcohol had increased last year by 26 percent.