Can a limited company invoice customers abroad in the UKKO service?

Yes, it can. With the UKKO Entrepreneur for Limited Companies service, you can invoice both foreign business customers and private individuals. Foreign trade is a paid additional service that currently costs €10 + VAT / 30 days.

You can activate the additional service in the browser version of the service under Settings → Manage Subscription.

When invoicing a foreign customer, first check whether the customer is a business or a private individual and whether you are selling a service or a product.
 

How to start invoicing customers abroad

1. Log in to the UKKO Entrepreneur for Limited Companies service using the browser version.
2. Open Settings and select Manage Subscription.
3. Activate the UKKO foreign trade add-on.
4. Determine the customer type and check whether the customer has a VAT identification number.
5. Create the invoice using the correct customer and VAT details.
6. Add information about EU sales to the service in good time so that the recapitulative statement can be submitted by the deadline.
    

When invoicing a business customer in another EU country

If you sell a service or product to a business located in another EU country:

• Add the customer company’s name and contact person to the invoice, and select the correct country.
• Add the customer’s valid VAT identification number.
• Check the VAT identification number in the VIES service.
• Select the invoice language and invoice shipping type, and add the company’s address details if necessary.
• Enter the delivery date of the product or service.
• Add the invoice lines and select VAT 0% and the correct grounds:
  • Sales of services in the European Union - Reverse charge, when you sell a service.
  • Intra-Community supply of goods in the European Union, when you sell a product.
• Confirm that you are entitled to use the selected VAT 0% code.
• Check the invoice details in the preview and send the invoice.

If the customer’s VAT identification number is not valid or the customer is not liable for VAT, the sale may not qualify for the EU reverse charge procedure. In this case, determine the correct VAT treatment before sending the invoice.
 

When invoicing a private individual in another EU country

When selling to a private individual residing in another EU country, Finnish VAT is generally added to the invoice.

However, special rules may apply to telecommunications, broadcasting and electronically supplied services, as well as products sold to consumers. If the total amount of these sales exceeds €10,000 per year, your company may need to register for the special VAT scheme known as the One Stop Shop, or OSS scheme.
In this case, the UKKO Entrepreneur for Limited Companies service is not suitable for your company.
 

When invoicing customers outside the EU

The VAT treatment of sales outside the EU depends on several factors, including:

• whether you are selling a service or a product
• whether your customer is a business or a private individual
• the country in which the customer is located
• the type of service or product being sold.

Before sending the invoice, find out how the sale should be treated for tax purposes in Finland and in the customer’s country.

Selling products outside the EU is not permitted in our service.

For services, the tax treatment depends on the country of supply. The country of supply rules determine which country has the right to tax the sale of the service. The Finnish Value Added Tax Act contains more detailed provisions on when VAT must be paid to Finland, meaning when the sale of the service takes place in Finland. In general, the seller is responsible for paying VAT.

As a general guideline, if you invoice a business outside the EU that has a valid company registration number, the sale is usually taxed in the customer’s country. In this case, the sale is generally invoiced at 0% VAT.

If you invoice a private individual outside the EU for a service, the sale is generally taxed in the seller’s country. In this case, the invoice usually includes Finnish VAT at 25.5%.

Even if no VAT is charged on sales to foreign business customers, the sale must still be reported to the Finnish Tax Administration on the VAT return.
 

Recapitulative statement for EU sales

EU business-to-business sales must be reported to the Finnish Tax Administration on a recapitulative statement in addition to the VAT return.

UKKO.fi submits the recapitulative statement on your behalf when the foreign trade additional service has been activated. The deadline is the 20th day of the month following the delivery date of the service or product.

To ensure that the statement can be submitted on time, you must add the previous month’s EU sales to the service and confirm the month according to the instructions no later than the 15th day of the following month.

For more information, see the article Recapitulative statement for a limited company’s EU sales.
 

Limitations of the service

• Invoices can only be issued in euros. Invoicing in other currencies is not possible in our service.
• Invoices can only be sent abroad by email directly from the service.
• E-invoicing and sending invoices by post abroad are not available.
• Selling products outside the EU is not permitted in the service.
   

Please also note

For more detailed information about VAT in international trade, we recommend contacting the Finnish Tax Administration.

The person creating the invoice is responsible for ensuring that the VAT treatment is correct. A company selling services or products must determine independently whether its activities create VAT obligations in other countries as well.

For more information about invoicing customers abroad, see the UKKO Entrepreneurship School article on invoicing abroad (only available in Finnish).
 

If you need help

If you are unsure how to treat a foreign sale or whether the service is suitable for your situation, contact our customer service at osakeyhtio@ukko.fi.

Please include the following information in your message:

• the customer’s country
• whether the customer is a business or a private individual
• what you are selling
• whether you are selling a service or a product
• the customer’s VAT identification number, if the customer is a business.