Sanoma Corporation, Press Release, 8 June 2023 at 9:30 EET
The administrative court has rejected Sanoma's appeal concerning the VAT treatment of distribution of certain magazines
The administrative court has rejected Sanoma's appeal that concerned the VAT payment decision regarding the tax audits at Sanoma Media Finland Oy for years 2015-2018 received from the Finnish Tax Adjustment Board on 29 April 2021. Based on the payment decision, Sanoma paid approx. EUR 25 million of VAT, penalties and interests in the third quarter of 2021. According to the administrative court's decision and pursuant to the Tax Assessment Procedure Act, no tax will be refunded to Sanoma. Sanoma will apply for a permission to appeal of the decision to the Supreme Administrative Court.
On 16 December 2022, Sanoma announced it had received a similar payment decision based on the tax audits for years 2019-2021. Based on the payment decision received, Sanoma paid approx. EUR 11 million of VAT, penalties and interests in December 2022. Sanoma considered also these claims fully unjustified and appealed of the decision to the Finnish Tax Adjustment Board where the process is still ongoing.
Based on the administrative court's decision, the VAT claims for years 2015-2018 and 2019-2021 with a total net amount of approx. EUR 30 million, currently booked as receivables in Sanoma's balance sheet, will be booked as items affecting comparability in Sanoma's Q2 2023 result. The court decision has no impact on Sanoma's free cash flow.
Additional information
Kaisa Uurasmaa, Head of Investor Relations and Sustainability, tel. +358 40 560 5601
Sanoma
Sanoma is an innovative and agile learning and media company impacting the lives of millions every day. Our Sustainability Strategy is designed to maximise our positive 'brainprint' on society and to minimise our environmental footprint. We are committed to the UN Sustainable Development Goals and signatory to the UN Global Compact.
Our learning products and services enable teachers to develop the talents of every child to reach their full potential. We offer printed and digital learning content as well as digital learning and teaching platforms for primary, secondary and vocational education, and want to grow our business.
Our Finnish media provide independent journalism and engaging entertainment also for generations to come. Our unique cross-media position offers the widest reach and tailored marketing solutions for our business partners.
Today, we operate in twelve European countries and employ more than 5,000 professionals. In 2022, our net sales amounted to approx. 1.3bn€ and our operational EBIT margin excl. PPA was 14.6%. Sanoma shares are listed on Nasdaq Helsinki. More information is available at sanoma.com.
