The Parliament has approved a change to the Finnish VAT (value added tax) Act, stating that copyright royalties collected by Finnish copyright organisations will be subjected to VAT. This change, effective as of January 2009, is in accordance with EU VAT policy.

A reduced VAT rate of 8% will be applied to copyright royalties, including private copying remuneration prices, making the transition easier for customers not eligible for VAT deductions.

Teosto's Private Copying Unit will add the 8% VAT to private copying remuneration prices starting January 1, 2009. Remuneration payments based on transactions that have taken place during 2008 will not be subjected to VAT, even if they are invoiced in 2009.

The Finnish Government will issue a decree stating the scope and level of the private copying remuneration for 2009 during December 2008. We will inform our customers about the new scope and level, and the price information will also be available on our website at http://www.hyvitysmaksu.fi/fin/prices.html