Tax Administration’s new instructions regarding invoicing services

The Tax Administration has updated the instructions regarding invoicing services that apply to our light entrepreneurs. UKKO.fi cannot influence the guidelines made by the tax authority. In this article, we describe what changes the new guidelines will bring to our service and how we will operate in the future. Along with the changes, you will also find instructions for different situations. 

If you need more information or advice regarding these changes, please contact our customer service.

Changes in travel costs

Regarding travel costs, the taxation will be clarified, as all kilometer allowances and per diems accepted through UKKO.fi will be paid tax-free in the future. In addition, your customer will receive a breakdown of the travel costs with the invoice. This means that travel expenses cannot be added or changed after the invoice has been sent.

Instructions:

• If you have travel costs, add the costs to be applied for before you send the invoice to the customer.
• The change does not apply to already granted travel costs that have been paid without submitting the withholding tax. Remember to apply for tax deductions for them in your own taxation. You can find a summary of these deductible travel costs in the Documents section of our service.

Changes in expenses

In the future, UKKO.fi can grant tax-free expenses against a receipt only for travel expenses based on tickets. Such expenses can be, for example, travel tickets or taxi trips to the workplace, as well as accommodation costs on business trips.

For the expenses to be tax deductible, they must be agreed with the customer and must be added to the invoice. Other expenses caused by doing the work (for example, purchases of work supplies) must be reported as deductibles in your own taxation.

Instructions:

• Add all expenses related to the work to the invoice before sending the invoice.
• Apply for tax deductions for expenses other than travel with your own tax return.

Changes in selling products

According to the instructions of the tax officials, the compensation to be paid for the sale of products is in the nature of the purchase price, which cannot be invoiced through the invoicing service. Invoicing must be based on the work, and not on the compensation received from the sale of the products.

In the future, the sale of self-made products will only be possible if the product is made to the customer's order. As a result, you cannot sell art objects at a VAT rate of 10% or self-produced food at a VAT rate of 14% through the UKKO Lightentrepreneurship service. If you make products to order for a customer, you can invoice them at a VAT rate of 24%.

Instructions:

• You can still sell the products you make yourself if they are made to order.
• When you create an invoice, specify in the "message to UKKO.fi administration" field that is connected to the invoice, that the product is made to order.
• When making the invoice, select the VAT rate of 24%.

Changes for entrepreneurs with a business ID

According to the tax official’s new instructions, a business name entrepreneur cannot invoice their income as salary through the invoicing service, and a shareholder of a limited company cannot invoice their work for the company they own through the invoicing service.

In the future, you cannot work as a UKKO light entrepreneur if you have an active business name. If, on the other hand, you own shares in a limited company, you can operate as a light entrepreneur, but you cannot send invoices to the company you own.

Instructions:

• If you are a business name entrepreneur, contact Private Trader’s customer service at asiakaspalvelu@ukkopro.fi. This way we can find out the suitable way for you to continue invoicing.
• If you are a shareholder of a limited company, you cannot send invoices to the company you own.