Sanoma Corporation, Stock Exchange Release, 16 December 2022 at 18:15 EET
Sanoma has received a payment decision regarding tax audits for 2019−2021 concerning the VAT treatment of magazine distribution in Media Finland, which it will appeal
Sanoma has received a payment decision from the Finnish Tax Administration regarding the tax audits at Sanoma Media Finland Oy for years 2019–2021, concerning the treatment of value added tax (VAT) of certain magazines that were printed in multiple locations in Europe, and processed in and distributed through a centralised logistic centre in Norway. The decision is in line with the earlier decision concerning years 2015−2018 by the Finnish Tax Adjustment Board. Sanoma considers also the new claim fully unjustified and will appeal the decision.
Based on the decision received, Sanoma will pay approx. EUR 11 million of VAT, penalties and interests before year end 2022 in order to avoid interest accumulation. No provisions related the matter will be made. For dividend calculation purposes, the Group’s free cash flow for 2022 will be adjusted for the tax payment.
On 29 April 2021, Sanoma announced it had received a decision from the Finnish Tax Adjustment Board related to a similar distribution arrangement of certain magazines during the years 2015–2018. Based on the decision received, Sanoma was required to pay approx. EUR 25 million of VAT, penalties or interests. Sanoma considers the claims fully unjustified and has appealed the decision to the administrative court where the process is still ongoing. The VAT regulations have changed as of 1 July 2021 and thus further tax audits related to the matter are not expected.
Additional information
Investors: Kaisa Uurasmaa, Head of Investor Relations and Sustainability, tel. +358 40 560 5601
Media: Hanna Johde, Communications Director, Sanoma Media Finland, tel. +358 40 673 8977
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 2021, our net sales amounted to approx. 1.25bn€ and our operational EBIT margin excl. PPA was 15.8%. Sanoma shares are listed on Nasdaq Helsinki. More information is available at sanoma.com.
