It is important that self-employed people set up their invoicing management before sending out a single invoice. The bank you are using probably provides services for issuing, sending and archiving invoices. Invoicing service companies also provide support, instructions, invoice templates and services for collecting any unpaid invoices.
A growing number of companies, organisations and authorities accept e-invoices only. They will instruct you on submitting your invoices. Many companies also accept PDF invoices via email. Some companies also accept paper invoices, but they often need to be sent out for digitisation. It always entails a small delay in invoicing and adds postage costs.
Before sending an invoice, you should make sure that the invoice is based on the agreed terms, such as a tender, and that the payer understands whether the biller is an entrepreneur, a freelancer without a Business ID or a light entrepreneur. All entities do not necessarily accept invoices from light entrepreneurs issued through invoicing services. Furthermore, for instance, in the case of freelancers who are not on the prepayment register, the payer is liable to pay non-wage labour costs in addition to the invoiced total.
You can find numerous invoice templates and instructions for issuing invoices on the Internet. The Tax Administration has certain invoicing requirements in the context of value-added taxation. The requirements include the following:
Mandatory information shown on invoices (Value Added Tax Act Article 209 e):
- Date of issue
- A unique sequential number (invoice number or some other string that unquestionably identifies the invoice)
- The seller’s VAT identification number
- Names and addresses of the seller and the purchaser
- Quantity and nature of the goods supplied, or the extent and nature of the services supplied
- The date of delivery of goods, performance of services, or prepayment
- Base of VAT per VAT rate or exemption, unit price exclusive of VAT, and any discounts or rebates if they have not been included in the unit price
- The VAT rate applied (e.g. 24%, 14% or 10%)
- The VAT amount payable
- In the case of an exemption, reference to it, or reference to the applicable provision of the Finnish VAT Act or the VAT Directive
- If the invoice is a correction or a change to a previous invoice, reference to that invoice
It is important to notice that if the biller is not a VAT taxpayer, they should indicate it as instructed above.
In addition to showing the above-mentioned information on your invoices, you should consider the following things:
- If the customer wants their own reference number on the invoice, you should add it.
- If you have agreed to include several expenses on the invoice, you need to itemise them.
- The term of payment should be indicated (for consumer customers, the recommended minimum is 14 days).
You should have a plan ready in case a customer does not pay their invoice. You can find information online by searching for “debt collection service” and investigate the options available.
VAT invoice requirements
https://www.vero.fi/en/detailed-guidance/guidance/48090/vat-invoice-requirements2/
Invoice example
https://www.isolta.fi/en/invoice-example/
Finvoice e-invoicing standard
https://www.finanssiala.fi/en/topics/finvoice-standard/
E-invoice address service
https://verkkolaskuosoite.fi/client/index.html