How is VAT handled in the UKKO Light Entrepreneur with a Business ID service?

A private trader may choose to register for VAT register even if their annual turnover remains below 20 000 €. Applying for VAT register is done by submitting a notification in OmaVero.

Always remember to inform our customer service if you register for or leave the VAT register.

In the UKKO Light Entrepreneur with Business ID service, VAT is withheld and remitted to the Finnish Tax Administration according to your VAT reporting period.

When your business is registered as VAT liable

After being registered for VAT liability, you may start issuing VAT-inclusive invoices from the date the registration takes effect. Please follow these steps:

• Inform our customer service immediately when you join the VAT register.
• Add VAT to the prices of the taxable goods and services you sell.
• Send invoices to your customers with the required markings according to the VAT Act.
• Deduct the VAT on purchases made for your business from the VAT you collect on your sales.

In the Light Entrepreneur service with a Business ID, we take care of filing and paying your VAT to the Tax Administration on your behalf, according to your tax period. We withhold VAT on each invoice and remit it to the Tax Administration based on the VAT return we file.

What is VAT?

Value-added tax (VAT) is a consumption tax that the seller includes in the price of goods or services. VAT is ultimately intended to be paid by the consumer.

In business-to-business transactions, the purchasing entrepreneur can deduct the VAT charged by another VAT-registered entrepreneur, provided that the goods or services are used in business activities that entitle the purchaser to a VAT deduction.