Invoicing and Tax regulation in Finland
Invoicing Regulation in Finland
Finland has very specific invoicing regulations in place for all b2b, b2c, and b2g transactions. Invoice content must include information such as: the supplier's name and address, the customer's name and address, the VAT number, the invoice number, the date of issue, a description of goods or services provided, quantity of goods, unit price, date of service, total amount excluding VAT, VAT rate, and total amount including VAT. Maintaining accurate records of all transactions is mandatory and essential for compliance.
Real-Time Reporting / Fiscalization in Finland
As of 1 January 2020, Finland has mandated the real-time reporting of sales invoices in business to business (B2B), business to consumer (B2C) and business to government (B2G) transactions. The regulations require that details of each invoice must be reported to the Finnish Tax Administration within 5 days of issuance. This process, known as fiscalization, is enforced to improve tax control and monitoring of economic activities.
E-Invoicing in Finland
E-invoicing is not mandatory for b2b, b2c, and b2g transactions in Finland, but it is highly encouraged, particularly in b2g transactions. Since 2010, it is mandatory for all suppliers to the Finnish government to deliver invoices electronically. To ensure compliance, businesses must ensure that their e-invoices meet the data content and format requirements set by the Finnish authorities.
VAT/GST/Tax Compliance in Finland
Every business conducting economic activities in Finland is required to comply with VAT (Value Added Tax) regulations. The standard VAT rate in Finland is 24%, with reduced rates of 14% and 10% applied to certain goods and services. Businesses must register for VAT, submit VAT returns regularly, and account for VAT on all taxable supplies of goods or services. Being aware of your VAT obligations is crucial to ensure tax compliance.