Send Invoice in Finland

E-invoicing is a cornerstone of Finland's digital economy, with specific regulations governing its use, particularly for transactions involving the public sector. Since April 1, 2019, central government bodies in Finland have been mandated to receive and process electronic invoices that comply with the European Standard EN 16931. This obligation was extended to all public entities, including municipalities, by April 1, 2020, and from April 6, 2021, all B2G (Business-to-Government) e-invoices must adhere to the EN 16931 standard. This means suppliers to Finnish public administrations are required to send structured e-invoices.

While there isn't a universal mandate for Business-to-Business (B2B) e-invoicing in Finland, a significant regulation empowers businesses to request e-invoices from their suppliers. Specifically, under the Finnish e-Invoicing Act 241/2019, companies with an annual turnover exceeding EUR 10,000 have the right to request and receive EN-compliant e-invoices from their suppliers. This "right to receive" has been a powerful driver for the adoption of e-invoicing in the private sector, making it a common practice even without a blanket obligation. It's important to note that if a buyer exercises this right, they may reject non-EN-compliant invoices.

Finland utilizes a mix of national and international e-invoicing formats, all designed to ensure interoperability and compliance with European standards. The primary national e-invoicing formats are Finvoice 3.0 and TEAPPSXML 3.0. Both of these XML-based formats are aligned with the European e-invoicing standard, EN 16931, which defines a common data model for electronic invoices. Finvoice is widely used by banks for e-invoice exchanges between their customers, while TEAPPSXML is prevalent among e-invoice operators.

Beyond national formats, the Peppol network plays a strategically important role, especially for cross-border transactions. Peppol (Pan-European Public Procurement Online) is an open network that simplifies the exchange of business documents like invoices securely across borders. It enables seamless cross-border e-invoicing, connecting businesses across Europe and increasingly globally, with countries like Japan, Australia, and Singapore also adopting it. For Finnish businesses engaging in international trade, leveraging Peppol, often using the Peppol BIS Billing 3.0 format, ensures interoperability and compliance with international partners. The use of Peppol for e-ordering with the Finnish central government has also been mandated since April 2024, with plans to extend this to all public sector procurement contracts by 2026.

Additionally, UBL (Universal Business Language) e-invoices, which are also XML-based, are accepted in Finland. UBL is a generic e-invoicing standard that provides a structured format for exchanging various business documents, and it is often used within the Peppol framework.

Ensuring compliance and efficiency when sending e-invoices in Finland involves adhering to specific practices and understanding archiving requirements. The fundamental step is to use an e-invoicing solution that supports the mandated formats, such as Finvoice 3.0, TEAPPSXML 3.0, or Peppol BIS Billing 3.0, all of which are compliant with the European Standard EN 16931. For B2G transactions, this compliance is mandatory, and public entities may reject non-compliant invoices. For B2B transactions where the recipient has requested an e-invoice (due to their annual turnover exceeding EUR 10,000), adherence to these standards is also crucial.

• Utilize an E-invoicing Operator or Network: Finland operates a decentralized e-invoicing system, relying on a network of private service providers (operators) to exchange invoices. Connecting with a certified operator or using the Peppol network ensures secure and efficient transmission.
• Ensure Correct Data Content: All e-invoices must include specific mandatory fields, such as the supplier's VAT number, invoice date, and applicable VAT amount, in accordance with VAT invoice requirements. Validation rules are strict, and non-compliant invoices may be rejected.
• Archiving Requirements: Finnish law mandates that all electronic invoices must be archived for at least six years after the end of the financial year. During this period, businesses must guarantee the authenticity of origin, integrity of content, and readability of the invoices. Invoices must be stored in their original structured format; printed or PDF copies do not meet the archival requirement. Archiving abroad is permitted, provided Finnish authorities have immediate online access upon request.
• No Mandatory E-Signatures: While digital signatures are not mandatory for e-invoices in Finland, many businesses use them for added security and to ensure authenticity and integrity.
• Leverage E-invoice Address Services: To find the correct e-invoicing address and service ID for your customers, utilize online directories like the Finnish Information Society Development Centre (TIEKE) e-invoicing Registry. This helps ensure invoices reach the intended recipient via their preferred operator.