Finland E-invoicing

Finland has long worked to implement the electronic transmission of invoices, with the country’s digitisation journey beginning in 2008. Fast-forward to today, Finland is one of the European countries with the highest digitisation rate. Over 90% of the B2B invoices in Finland are formatted and sent electronically without obligation.

Despite the long journey, e-invoicing has not been fully implemented in the country. Learn more about the nuances of Finland e-invoicing with this handy overview.

1. B2B e-invoicing in Finland 2. B2G e-invoicing in Finland 3. The use of Peppol in Finland 4. Timeline of e-invoicing adoption in Finland 5. Setting up e-invoicing in Finland with Sovos 6. FAQ 7. Additional resources

B2B e-invoicing in Finland

There is no general mandate for issuing electronic invoices in Finland, but organisations still often use them. Similar to many European countries, the buyer’s acceptance is required for businesses to exchange e-invoices in Finland.

In 2021, the country passed a law that allowed companies with a turnover exceeding €10,000 to receive e-invoices from suppliers upon request.

Businesses can use any of the methods allowed by the EU VAT Directive 2006/112/EC to protect the integrity and authenticity of the e-invoice:

Electronic signatures
Exchange via Electronic Data Interchange (EDI)
Business controls that create a reliable audit trail

E-invoicing in Finland operates through a network of service providers (operators), who route invoices between senders and recipients. The Finnish Information Society Development Centre (TIEKE), a non-profit organisation, manages an e-invoicing Registry which includes the contact information and e-invoicing addresses of companies that have adopted electronic invoicing.

The typical formats used by businesses are:

Finvoice
TEAPPSXML
Peppol BIS

Invoices must be retained for six years after the end of the accounting year.

B2G e-invoicing in Finland

While Finland has utilised e-invoices since 2008, it only obliged public authorities to be able to receive electronic invoices in 2019. This was specifically for central public administrations with a staged roll-out to cover all levels of the public administration.

The mandate was expanded in 2021 to include an obligation for suppliers of public administration, coinciding with a requirement for electronic invoices to meet the European Standard (EN16931).

Regularly used e-invoice formats include:

Finvoice
TEAPPSXML
Peppol BIS

Central, regional and local authorities are capable of receiving electronic invoices through a network of e-invoice service providers or via the three free platforms provided by the State Treasury.

These platforms ensure secure and efficient processing of financial transactions, enabling governmental bodies at different levels to streamline their operations and maintain accurate records. This system also promotes transparency and accountability in public sector financial management.

E-invoices must be archived for six years from the end of the accounting year.

The use of Peppol in Finland

Finland began implementing Peppol in 2008, making it one of the initiative’s earliest adopters. Finland’s Peppol Authority is the State Treasury of Finland, an agency operating under the nation’s Ministry of Finance. It was appointed in 2022, assuming responsibility for running the national Addressing and Capability Lookup (ACL) service and enforcing the Peppol Authority Specific Requirements (PASR).

While some European countries prefer to format e-invoices according to Peppol standards, the main formats in Finland remain Finvoice and TEAPPSXML. Peppol BIS Billing, the framework’s standard format, is mainly utilised for cross-border transactions.

That said, since April 2024, Finnish governmental agencies have required suppliers to be able to exchange Peppol order and order response messages. This requirement isn’t enforced by law, but it is enforced in procurement contracts.

Learn more about Peppol.

Timeline of e-invoicing adoption in Finland

Here are the key dates in Finland’s e-invoicing journey:

2009: The Finnish Tax Administration launches a national e-invoicing network known as “Finvoice,” allowing businesses to send and receive e-invoices
2019: Central government bodies are mandated to receive and process electronic invoices
1 April 2020: All companies with a turnover exceeding €10,000 can request to receive electronic invoices from suppliers
6 April 2021: E-invoicing operators and service providers are now obliged to exchange, validate and process electronic invoices to the EN-16931 standard with public contractors
1 April 2024: Finnish government now requires suppliers to be able to exchange Peppol order and order response messages
1 July, 2030: Finnish VAT-registered businesses must comply with VAT in the Digital Age (ViDA) requirements, which include mandatory e-invoicing and digital reporting for Intra-Community B2B transactions.

Setting up e-invoicing in Finland with Sovos

If you operate in multiple countries, you know how hard it is to stay on top of national regulatory requirements. Factor in the ever-changing nature of tax regulations, and you have a significant compliance burden on your hands.

Sovos serves as a single compliance partner that takes care of all your tax obligations so you can focus on what really matters: building your business.

Speak with our expert team today to reclaim your time and peace of mind.

Get in touch with us

FAQ

Is e-invoicing mandatory in Finland?

E-invoicing is mandatory for suppliers to public sector entities, but not yet mandatory for B2B transactions. However, companies with an annual turnover of over €10,000 can require their suppliers to issue e-invoices.

What formats are used for e-invoicing in Finland?

The primary formats are Finvoice and TEAPPSXML, both of which are compatible with the European Standard EN 16931. Peppol BIS is also supported, especially for cross-border invoicing.

Can Finnish businesses request e-invoices from other businesses?

Since April 2020, any business in Finland with an annual turnover of more than €10,000 has the legal right to demand structured e-invoices (in EN-compliant formats like Finvoice or TEAPPSXML) from its suppliers. This encourages broader voluntary adoption of e-invoicing in the B2B sector.

Additional resources

E-invoicing Guide

Learn about the global rise of electronic invoicing.

Read here