Compensate Base Price
AS OF 25 APRIL 2020, THE COMPENSATE BASE PRICE (THE PRICE OF OFFSETTING 1000 KG OF CARBON DIOXIDE) IS EQUAL TO EUR (€) 28.00.
Notice: Value-added tax (VAT) to be included in Compensation Fees and other payments from 1 August 2021 onward
As a non-profit organisation aiming to battle the climate crisis, Compensate has always attempted to handle its tax matters with care and diligence. For that reason, Compensate has consistently applied for preliminary tax rulings from the Finnish Tax Authority to determine whether we should charge value-added tax or other taxes on Compensation Fees or other payments. Until now, we’ve been treated as a public benefit organisation under Finnish tax legislation, due to which all Compensation Fees have been free from VAT.
Now the stance of the Finnish Tax Authority has changed, and starting from this year we are no longer treated as a public benefit organisation in terms of taxation. The new ruling has caused uncertainty as to whether we are obliged to charge VAT on Compensation Fees and other payments, and we have already started talks with the public officials to get a definitive answer. As this will take some time, as a precaution we have decided to include Finnish VAT in all Compensation Fees and other payments until the matter is resolved.
What does this mean for you?
Starting from 1 August 2021, all Compensation Fees, Licensing Fees and other payments will start to include Finnish VAT (24%). The amount of your Compensation Fees will not increase. Instead, we will put a portion of the fees equal to the tax temporarily aside. If so required, we will remit the portion to the Tax Authority. However, if our talks with the officials succeed and we can continue to offer Compensation Services VAT-free, we will spend the portion that we have put temporarily aside on climate-impacting measures as we normally would have. In either case, the majority of your Compensation Fees (correction: 80.65%, not 76% as previously mentioned) will go directly toward these measures as they have so far. As always, we will not take a cut from your fees for ourselves.
If you do not agree with these changes, please contact us before 1 August 2021 at
Please send all notifications, questions, or demands related to our Services or Systems to us:
Compensate Operations Oy