Sanoma Corporation, Stock Exchange Release, 29 April 2021 at 21:30 EET
Sanoma received a decision from the Finnish Tax Adjustment Board concerning the VAT treatment of distribution of certain magazines, which it will appeal
Sanoma received a decision from the Finnish Tax Adjustment Board that they have accepted a claim made by the Finnish Tax Ombudsman related to tax audits at Sanoma Media Finland Oy. The claim concerned the treatment of value added tax (VAT) of certain magazines that were printed in multiple locations in Europe and distributed through a centralised logistics centre in Norway in 2015 and 2016-2018. Sanoma’s aim is to provide consumers with interesting and high-quality content at an affordable price and ensure reliable delivery from the decentralised printing providers to the readers. To achieve this, a centralised logistics centre, which provides pivotal value-adding services, including e.g. sorting based on requirements of different distributors, labelling and coordination of the complete logistic chain, has been used.
Based on the decision received, Sanoma is required to pay approx. EUR 20 million of VAT, excluding potential penalties or interests. Sanoma continues to consider the claims fully unjustified and will appeal the decision. Thus, no provisions related to the matter will be made. In order to avoid any interest accumulation, Sanoma may pay the requested amount during 2021. For dividend calculation purposes, the Group’s free cash flow will be adjusted for the payment.
Investors: Kaisa Uurasmaa, Head of Investor Relations and Sustainability, Sanoma Corporation, tel. +358 40 560 5601
Media: Hanna Johde, Communications Director, Sanoma Media Finland, tel. +358 40 673 8977
Sanoma is an innovative and agile learning and media company impacting the lives of millions every day.
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 across Europe.
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 eleven European countries and employ close to 5,000 professionals. In 2020, our net sales amounted to approx. 1.1bn€ and our operational EBIT margin excl. PPA was 14.7%. Sanoma shares are listed on Nasdaq Helsinki. More information is available at www.sanoma.com.