Finland Ecommerce Regulations

Last modified by aarne on Wed, June 23, 2010 17:37
Source|Old Revisions  

Finland Ecommerce Regulations

VAT

There are three types of VAT, in finnish ALV for short:

22% (general)
17% (groceries and feed)
8% (books, medicine, exercise services, movies, human transportation, accommodations, cultural- and entertainment occasions and permits for television watching etc).

International orders and VAT:

Finnish VAT:

- applies to consumers within EU
- applies to companies with no VAT no.
- does not apply to companies with a registered VAT no. within EU (customers VAT no. must be stated on invoice)
- does not apply to consumers or companies in countries outside EU
- applies to both consumers and companies within Finland even with registered VAT no. (they deduct in accounting)

Currency

Currency in Finland is Euro (EUR), abbrivated as “€” at end of price.

Coins:

5 cent
10 cent
20 cent
50 cent
1 €
2 €

Paper:

5 €
10 €
20 €
50 €
100 €
200 €
500 €

Thousand separator: space
Decimal sign: ,

There needs to be support for currency rounding to even out prices. Finland doesn’t use 1 or 2 cent coins so rounding rule are: 1-2 evens up to 0 3-4 evens up to 5. Example: price is 4,56: after rounding total is 4,55. If price is 4,58: after rounding 4,60.

However, if you pay by plastic (credit card or bankcard) the amount is NOT rounded.
Addition to above: Rounding only happens when paying with cash. Prices are NOT rounded within webshop payment interfaces like bank payment even when it’s direct transfer or in billing.

Prices

Price to consumers (B2C) must include VAT in the storefront. VAT must also be specified on the invoice / receipt and in the checkout.

Example:

““Subtotal:”“100,00 € (has 80 € worth of VAT 22% items and rest is VAT 8%)
““Shipping:”” 5,00 € (shipping has VAT 22%)
““Total:”“105,00 €
VAT 22%: 18,70 €
VAT 8%: 1,60 €

Price to companies (B2B) are to be shown excl. VAT. The company must also disclose their business reg. no.

A lot of billing methods use extra surcharges which must be taxable using a tax class.

If there are multiple products with different tax rates, each must be specified. Example:

““Subtotal:”” XXX,xx € (shown with VAT 0%)
““Shipping:”“XX,xx € (shown with VAT 0%)
VAT 22%: XX,xx €
VAT 17%: XX,xx €
VAT 8%: XX,xx €
““Total:”“XXX,xx € (All included)

Since some stores can both be B2B and B2C, a usergroup is needed to show prices differently.

More info about Finnish tax office and VAT in Finland.




 

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