We purchase international transport services from our subcontractor. These transports leave from Finland but end up abroad. How is the limit value of applying the Act on the Contractor’s Obligations and Liability when Work is Contracted Out calculated for these contracts?
The Act on the Contractor’s Obligations and Liability when Work is Contracted Out applies to subcontracts with a value of EUR 9,000 or more excluding VAT. When purchasing international transport services, only the part of the total value of the subcontract is considered that relates to the transport service and any related service performed in Finland.
If the parties enter into several successive contracts with short interruptions, the values of the contracts shall be added together to assess whether the limit value has been exceeded. The contractor has the obligation to check if the total proportion of work performed in Finland in successive contracts is at least EUR 9,000 (VAT 0%).