Briefing Document & Podcast: E-Invoicing and E-Reporting in Finland

SUMMARY

Executive Summary:

Finland has a well-established e-invoicing environment, driven by a mandate for Business-to-Government (B2G) transactions and high voluntary adoption in the Business-to-Business (B2B) sector. While a full B2B e-invoicing mandate isn’t yet in place, Finland is actively developing a Real-Time Economy (RTE) framework and awaiting EU-wide policy under the “VAT in the Digital Age” (ViDA) initiative. Mandatory e-invoicing and digital VAT reporting for intra-EU B2B transactions is required by the EU by the end of this decade, with a go-live date of July 1, 2030. Domestic rollout of e-invoicing mandates will likely follow a phased approach. Businesses operating in Finland should be prepared for increasing electronic reporting requirements in the near future, aligning with both national plans and EU directives.

1. Implementation Timeline & Mandates:

• Early Adoption: Finland has been a pioneer in e-invoicing since the early 2000s with national formats (Finvoice, TEAPPSXML).
• 2019 (B2G Mandate): E-invoicing became mandatory for central government agencies for public contracts. “Following EU Directive 2014/55/EU, Finland mandated that central government agencies must accept and process only e-invoices (in EU standard format) for public contracts from April 1, 2019.”
• 2020 (B2G Extension & B2B Right to E-Invoice): The mandate extended to all public administrations. Businesses with turnover > €10k gained the right to demand e-invoices from their partners. “Effective April 1, 2020, the e-Invoicing Act extended B2G e-invoicing to all public administrations (central and local) and gave all companies with turnover > €10k the right to require e-invoices from their business partners.”
• 2021: All suppliers to the public sector effectively obliged to send EN 16931-compliant e-invoices.
• 2022-2025: No mandatory B2B or B2C e-invoicing yet, but e-invoicing is widespread voluntarily (over 90% of Finnish B2B invoices are already electronic).
• Future (EU Mandates and National Plans): Full mandatory e-invoicing for all transactions in Finland could arrive around 2028–2030, guided by EU standards and the success of the national RTE project.

2. Scope of Transactions:

• B2G: Mandatory. Applies to all levels of government. Foreign suppliers must use EN16931 format. “B2G electronic invoicing is compulsory for all domestic and cross-border transactions with public bodies in Finland.”
• B2B (Domestic): Not mandated, but a high adoption rate. Businesses > €10k turnover can demand e-invoices. “as of 2025, domestic B2B e-invoicing in Finland is de facto optional (voluntary), but any large business can insist on it contractually. No clearance by tax authorities is required yet.”
• B2C: No mandate.
• Intra-EU B2B: Not currently subject to Finnish mandate, but will be mandatory EU-wide by 2030 under ViDA. “Finland plans to implement the EU requirements at that time, meaning Finnish companies will have to issue structured e-invoices for cross-border EU sales and likely submit them to the tax authority (or at least ensure they are available) in near real-time.”
• Non-Established Taxable Persons: Subject to the same rules as established businesses regarding Finnish transactions.

3. Data Requirements & Formats:

• E-Invoice Content: Follows the European standard EN 16931. Key mandatory fields include supplier and buyer VAT identification, invoice date, invoice number, line item details, taxable amount, VAT rate, VAT amount, total amount, etc.
• E-Invoice Formats: Common formats include Finvoice 3.0 and TEAPPSXML 3.0 (national XML), UBL 2.1 and UN/CEFACT CII (international), and Peppol BIS Billing 3.0. “Common formats in Finland are Finvoice 3.0 and TEAPPSXML 3.0, both XML schemas that are compliant with EN16931 semantics.”
• E-Reporting Data: Will include key data points from each invoice/receipt, such as invoice identifier, date, seller and buyer tax IDs, amounts (total and taxable base by tax rate), VAT amount, and invoice type. Focus is on financial and counterpart information, not product details.
• E-Reporting Format: Likely XML or JSON. Will be API-based for automated transmission. “The Tax Administration envisions an automated API-based system: companies’ financial software would transmit the required data in machine-readable form directly to the tax authority’s database.”

4. Deadlines for Transmitting Data:

• Current VAT Returns: Filed monthly, quarterly, or yearly, depending on turnover.
• Proposed E-Reporting Deadlines: Sales invoices to be reported by the 6th of the following month. Purchase invoices to be reported within one month after the month of the invoice (or by the time the VAT return is filed, if earlier). “Sales invoices should be reported by the 6th day of the month following the invoice’s month. Purchase invoices (accounts payable) should be reported within one month after the month of the invoice – effectively by end of the next month – or by the time the VAT return is filed if that is earlier.”

5. Penalties for Non-Compliance:

• E-Invoicing Non-Compliance (B2G): Invoices may be rejected, leading to non-payment. Persistent failures may result in fines or sanctions.
• E-Reporting Non-Compliance: Likely to trigger administrative fines (fixed amount or percentage of tax).
• Invoice Content Errors: Recipient can reject non-compliant invoices.

6. Archiving Requirements:

• Invoices must be archived for at least 6 years after the end of the financial year in which the transaction occurred. Some records have longer retention: the main accounting ledgers and financial statements must be kept for 10 years.
• Electronic archiving is permitted, ensuring authenticity, integrity, and readability.

7. Pre-Filled VAT Returns:

• Not currently available. A long-term goal is to enable optional pre-filled VAT returns based on e-reporting data.

8. Relevant Regulations and Resources:

• National Law: Act 241/2019 (e-invoicing), Accounting Act (1336/1997) (archiving).
• EU Law: Directive 2014/55/EU (public procurement e-invoicing), VAT in the Digital Age Directive (EU 2025/516) (B2B e-invoicing and reporting).
• Government Resources: Finnish Tax Administration (vero.fi), Ministry of Finance, Yrityksen Digitalous (yrityksendigitalous.fi), State Treasury (Valtiokonttori), TIEKE (tieke.fi).

9. Key Takeaways & Recommendations:

• Ensure compliance with B2G e-invoicing mandates.
• Be prepared to accommodate B2B partners who request e-invoices.
• Monitor developments related to e-reporting and the ViDA directive.
• Maintain proper e-invoicing processes, including correct formats, data quality, and archiving.
• “Finland’s framework is grounded in EU law and Nordic digital practices. Companies operating in Finland should already be using e-invoicing for public sector clients and be ready to accommodate partners who request e-invoices.”

This briefing document provides a comprehensive overview of Finland’s e-invoicing and e-reporting landscape based on the provided source. Keep in mind that this area is evolving, so it’s important to stay updated on the latest legislative and regulatory changes.

INDEPTH ANLYSIS

• Implementation Timeline (Past, Current, Future):
  • Early Adoption: Finland was an e-invoicing pioneer – electronic invoicing began in the early 2000s with national formats (Finvoice, TEAPPSXML) developed due to lack of EU standards at the time. A voluntary B2B e-invoicing network (operated by banks and service providers) has existed for decades. [roedl.com], [roedl.com]
  • 2019 (B2G Mandate): Following EU Directive 2014/55/EU, Finland mandated that central government agencies must accept and process only e-invoices (in EU standard format) for public contracts from April 1, 2019. This was enacted via the national Act on Electronic Invoicing (241/2019). [ec.europa.eu], [theinvoicinghub.com] [wts.com]
  • 2020 (B2G Extended & Right to E-Invoice in B2B): Effective April 1, 2020, the e-Invoicing Act extended B2G e-invoicing to all public administrations (central and local) and gave all companies with turnover > €10k the right to require e-invoices from their business partners. In practice, from 2020 any Finnish government entity or private company (above the small business threshold) can refuse to accept paper/PDF invoices and insist on a standard electronic invoice. (Micro-enterprises under €10k annual sales and businesses doing only B2C are exempt from this obligation.) This 2020 step stopped short of a full mandate on all B2B invoices, but it accelerated e-invoicing adoption in the private sector. [wts.com], [theinvoicinghub.com] [wts.com] [wts.com], [rtcsuite.com]
  • 2021: By April 2021, all suppliers to the public sector were effectively obliged to send EN 16931-compliant e-invoices, and e-invoice operators had to support the EU standard format. From this date, any e-invoice exchanged in Finland is required to meet the European standard content requirements. (In practice, common national XML formats Finvoice 3.0 and TEAPPSXML 3.0 were updated to align with EN16931.) [sovos.com], [sovos.com] [theinvoicinghub.com], [theinvoicinghub.com]
  • 2022–2025: Finland has not introduced mandatory B2B or B2C e-invoicing yet, pending EU-wide policy. The Tax Administration and Ministry of Finance are developing a Real-Time Economy (RTE) framework and have published a roadmap to implement “invoice and receipt–specific reporting” (e-reporting) in phases. No fixed go-live date for mandatory e-invoicing or e-reporting has been set as of 2025 – Finland is awaiting the EU’s decisions under the “VAT in the Digital Age” (ViDA) initiative and will amend national law accordingly. Meanwhile, e-invoicing remains very widespread voluntarily (over 90% of Finnish B2B invoices are already electronic in practice). [wts.com], [wts.com] [wts.com] [sovos.com]
  • Future (EU Mandates and National Plans): In March 2025, the EU adopted the ViDA reform (Council Directive (EU) 2025/516) which requires all Member States (including Finland) to implement mandatory e-invoicing and digital VAT reporting for intra-EU B2B transactions by the end of this decade. Notably, from 1 July 2030, structured e-invoices will be obligatory for cross-border B2B supplies EU-wide, and near–real-time transaction reporting will replace the current recapitulative statements. Finland’s government has signaled it will align with these EU timelines rather than impose separate earlier mandates. Domestic rollout of e-invoicing mandates will likely follow a phased approach: the Tax Administration’s proposal is to start with B2G and large companies, then extend to B2B and even B2C in stages once systems are ready. In other words, full mandatory e-invoicing for all transactions in Finland could arrive around 2028–2030, guided by EU standards and the success of the national RTE project. An intermediate step is the introduction of electronic receipts (eKuitit) for point-of-sale transactions, which is expected in 2025 as part of Finland’s move toward a real-time economy. [sovos.com], [theinvoicinghub.com] [sovos.com] [wts.com] [ec.europa.eu], [sovos.com] [ec.europa.eu]

• Scope of Transactions Covered (Domestic vs Intra-EU vs Export; B2G, B2B, B2C):
  • B2G (Business-to-Government): Mandated. All invoicing to Finnish public entities must be electronic. Since 2019 this applies to central government bodies, and since 2020–2021 all government contracting authorities at any level can require e-invoices. In practice, any supplier (domestic or foreign) sending an invoice to a Finnish public sector body for a contract above the small procurement threshold must submit a structured e-invoice compliant with the EU standard. This includes invoices from abroad to Finnish authorities – foreign suppliers are expected to use the EN16931 format (often via the Peppol network) for Finnish public contracts. (The Finnish State Treasury became a Peppol Authority in 2022 to facilitate cross-border e-invoicing.) There is no central portal; public bodies receive e-invoices through interoperable service providers or designated platforms (e.g. the Handi Service or Basware portal). Summary: B2G electronic invoicing is compulsory for all domestic and cross-border transactions with public bodies in Finland. [ec.europa.eu], [theinvoicinghub.com] [ec.europa.eu] [ec.europa.eu], [sovos.com] [sovos.com] [rtcsuite.com]
  • B2B (Business-to-Business, Domestic): Not yet universally mandated, but strongly supported. Currently, Finnish law allows e-invoicing and sets standards, but does not force all B2B invoices to be electronic. However, since April 2020 any buyer (company) with >€10k turnover can demand an e-invoice from its supplier. This effectively means most medium and large businesses in Finland have the legal right to operate fully with e-invoices. Many companies have exercised this right, giving Finland one of the highest B2B e-invoicing rates in Europe (around 90% uptake, even without a mandate). There is no obligation for purely domestic B2B invoices to be reported to the Tax Administration in real time today – they are just exchanged between supplier and buyer (with VAT still summed up in periodic returns). Finland’s future plan is to eventually make B2B e-invoicing mandatory in phases, once EU policy allows and systems (especially for SMEs) are prepared. In summary: as of 2025, domestic B2B e-invoicing in Finland is de facto optional (voluntary), but any large business can insist on it contractually. No clearance by tax authorities is required yet. [wts.com], [theinvoicinghub.com] [sovos.com] [wts.com], [wts.com] [theinvoicinghub.com]
  • B2C (Business-to-Consumer): No mandate. There is no requirement for consumer invoices (e.g. receipts or bills to private individuals) to be electronic. Traditional receipts and invoices are still permitted in B2C. That said, e-invoicing in B2C is possible and growing – for example, many Finnish consumers receive e-bills via online banking or get electronic receipts (eKuitit) from vendors. The government’s strategy includes expanding digital receipts to consumers to feed into the real-time reporting ecosystem, but this remains voluntary and at an early stage. Scope highlight: B2C transactions are outside any current e-invoice mandate, though they may eventually be included in e-reporting in later phases (Finland’s plan is to capture a “sufficiently comprehensive picture” of business by including sales to consumers in transaction reporting). [rtcsuite.com] [wts.com]
  • Intra-EU B2B Transactions: Currently: Cross-border B2B invoices (e.g. a Finnish company invoicing a VAT-registered customer in another EU country) are not subject to a Finnish e-invoicing mandate or real-time report – they follow EU VAT rules (the buyer’s VAT number on the invoice and quarterly EU Sales List reporting). Finland’s Tax Administration has actually proposed to exclude intra-EU B2B sales from the domestic e-reporting system, since those are already reported via the VAT recapitulative statement (EU “VIES” system). However, under the new EU ViDA directive, intra-EU B2B e-invoicing will become mandatory EU-wide by 2030, superseding national choices. Finland plans to implement the EU requirements at that time, meaning Finnish companies will have to issue structured e-invoices for cross-border EU sales and likely submit them to the tax authority (or at least ensure they are available) in near real-time. In anticipation, by 2028 Finland will begin preparations for handling intra-EU e-invoices seamlessly. Exports outside EU (and imports) are, for now, also outside any e-invoice mandate or planned e-reporting (they are handled by customs/import VAT processes). Finland’s stance is that if desired companies could report export invoices in the future system, but it wouldn’t be required. [wts.com] [sovos.com] [ec.europa.eu]
  • Non-Established Taxable Persons: Businesses not established in Finland but registered for VAT there (e.g. foreign companies with a Finnish VAT number) are subject to the same invoicing rules for their Finnish transactions. So, a non-established company must issue Finnish-compliant invoices for any supplies made in Finland. If they deal with Finnish public bodies, they must send e-invoices in the required format. If Finland introduces transaction reporting, it will likely apply to all VAT-registered persons in Finland, regardless of establishment (similar to how VAT returns are required from non-established registrants). Thus, foreign companies with a Finnish VAT ID would have to submit their sales/purchase data too. (Details will be clarified when legislation is drafted.) Currently, foreign companies below the threshold or doing only B2C in Finland are effectively treated like the domestic counterparts – no e-invoice obligation. In summary, established and non-established businesses are in scope for Finnish e-invoicing requirements whenever they transact with Finnish public entities or partners who demand e-invoices, and future reporting mandates will cover all who file Finnish VAT returns. [ec.europa.eu] [ec.europa.eu], [rtcsuite.com] [wts.com]

• Data Requirements for E-Invoicing and E-Reporting (Content & Format):
  • E-Invoice Content: Finland follows the European standard EN 16931 for invoice data. Every e-invoice must be issued in a structured electronic format that can be automatically processed. Key mandatory fields include those required by the VAT Directive: supplier and buyer VAT identification, invoice date, invoice number, line item details or description, taxable amount, VAT rate, VAT amount, total amount, etc.. The Finnish e-Invoicing Act specifically requires that an invoice contain all data fields stipulated by Directive 2014/55/EU (the EU e-invoicing standard) – if it lacks any required field, the buyer is entitled to reject it. This ensures invoices carry sufficient detail for tax and accounting. Consolidated invoices (combining multiple transactions for different deliveries) are not permitted under the e-invoice standard, so each invoice should correspond to a single business transaction or a clearly defined group of goods/services sold at one time. Notably, an email PDF is not considered an e-invoice – invoices must be in XML or comparable structured form, not just an image or PDF file. Common formats in Finland are Finvoice 3.0 and TEAPPSXML 3.0, both XML schemas that are compliant with EN16931 semantics. International formats UBL 2.1 and UN/CEFACT CII are also accepted and used, especially for cross-border trade. In addition, Finland has embraced Peppol BIS Billing 3.0 (the Pan-European invoice format) – while not yet the primary format domestically, Peppol usage is growing for both public procurement and B2B, and Finland is considering transitioning more fully to Peppol/UBL by the end of the decade. All these formats carry the same core information; they differ only in syntax. In practice, if an invoice meets the European Standard, it meets Finnish requirements regardless of the syntax used. [wts.com] [ec.europa.eu] [wts.com], [ec.europa.eu] [wts.com], [sovos.com]
  • E-Reporting Data: Finland’s envisioned “transaction-level VAT reporting” will not mean sending full invoice documents to the tax authority, but rather a set of key data points from each invoice/receipt. According to the Finnish Tax Administration’s proposal, it would be enough to report defined summary information per invoice or receipt. This likely includes: invoice identifier, date, seller and buyer tax IDs (for B2B), amounts (total and taxable base by tax rate), VAT amount, and perhaps invoice type (sale vs purchase, credit note, etc.). The authorities have indicated that line-item descriptions or product details are not significant for tax purposes – only the financial and counterpart information is needed. The aim is to minimize data volume while still providing a “complete picture” of each company’s taxable sales and purchases. For instance, domestic B2B and B2C sales would be reported invoice-by-invoice, and domestic purchase invoices would likewise be reported by buyers. However, certain transactions would be excluded or handled separately: notably, intra-EU B2B sales (community supplies) and triangulation scenarios would not be included in this new reporting; those would continue to be reported via the EU recapitulative statement (though companies could opt to include them if they wish). Also, fully VAT-exempt sales (such as some financial or healthcare services) need not be reported per invoice, since they don’t show up in VAT returns – those would remain aggregated on the VAT return instead. In summary, the data to be provided in Finland’s e-reporting system would cover most taxable transactions (B2B, B2C, domestic) with a minimal set of fields per invoice, sufficient to cross-check against the VAT return totals. This would include sales to consumers and non-VAT payers (to capture the full turnover), but likely exclude cross-border EU sales and imports/exports which are handled by other systems. The final list of data fields and scope will be defined in legislation, but the guiding principle is to require only the info needed for VAT control (and no unnecessary product-level details). [wts.com] [wts.com], [wts.com]
  • Formats and Standards for Transmission: Since e-reporting isn’t live yet, no official data format is fixed. The Tax Administration envisions an automated API-based system: companies’ financial software would transmit the required data in machine-readable form directly to the tax authority’s database. The format could be an XML or JSON schema defined by the tax authority. It might leverage existing e-invoice data – for example, Finland could allow (or require) that a copy of each e-invoice be sent to the Tax Administration in the same format (as some countries like Italy do), or more likely, that software extracts the needed fields and sends a standard report message. Given Finland’s participation in Nordic and EU standardization, any e-reporting format will be compatible with EU standards for Digital Reporting Requirements under ViDA. In essence, Finland will ensure that whatever format is used (national or Peppol-based), it can interoperate with other countries’ systems by the time intra-EU reporting is harmonized. Summary of technical format: [wts.com]
    • E-Invoicing: Uses structured XML formats – Finvoice and TEAPPSXML (national), or UBL/CII/Peppol BIS (international) – all compliant with the European Norm EN16931. Invoices must include all standard VAT details. Secure transmission is typically via accredited e-invoicing service providers or the Peppol network, not email. [wts.com], [ec.europa.eu] [wts.com], [theinvoicinghub.com]
    • E-Reporting: Will use an electronic interface (digital channel) to the Tax Administration (likely an online portal or API endpoint). Data will be transmitted in a specified structured format (to be defined, likely XML/JSON) within set deadlines (see next point). No paper or manual filings – the system is intended to be fully automated, feeding from invoicing or accounting software in near real time. (For reference, other countries’ models and EU guidelines will influence Finland’s approach. Finland is working with other Nordic countries to create interoperable digital reporting as part of the “Real-Time Economy” initiative.) In any case, strong data integrity and authenticity measures will be in place (e.g. using the same controls that ensure invoice authenticity). [wts.com]

• Deadlines for Transmitting Data (Reporting Timeline):
  • VAT Returns Today: Currently, Finnish companies file VAT returns monthly, quarterly, or yearly depending on turnover. The standard filing frequency is monthly, due on the 12th of the second month following the tax period (e.g. January VAT return due March 12). There is no requirement to submit invoice data before the VAT return – only aggregate figures are reported. This will change once e-reporting is introduced.
  • Proposed E-Reporting Deadlines: The Tax Administration’s proposal (as of late 2023) suggests specific deadlines for submitting individual invoice data: Sales invoices should be reported by the 6th day of the month following the invoice’s month. Purchase invoices (accounts payable) should be reported within one month after the month of the invoice – effectively by end of the next month – or by the time the VAT return is filed if that is earlier. For example, an invoice issued in June would need to have its data sent by July 6 (if a sales invoice) or by July 31 (if a purchase invoice, since July 31 is one month after June). If a company files a June VAT return earlier (say on July 12), purchase invoices could be submitted by then. These timelines mean sales data is reported fairly quickly after month-end, enabling the authorities to pre-compute VAT liabilities soon after each month. Purchase data has a slightly longer window to accommodate later receipt of supplier invoices. Notably, this is not “real-time” on a per-invoice basis but rather frequent periodic reporting – roughly a monthly batch (sales within ~1 week after month-end; purchases within a month). The government intentionally chose these grace periods to balance timeliness with businesses’ administrative capacities. It’s a compromise between real-time reporting and the current system. There was no proposal to report each invoice within X days of its issuance (unlike Italy’s 5-day rule, for instance); instead the focus is on monthly cadence. These deadlines are still proposals – the final law might adjust them, especially in light of EU-level decisions (the ViDA directive, for instance, will require cross-border invoice data to be reported within 2 days of issuance by 2028). Finland may ultimately tighten the timeframe to align with EU standards for intra-EU transactions. But for domestic reporting, a slightly longer delay (up to a few weeks) might remain. [wts.com]
  • Transmission to Tax Authorities: In the future system, the invoice data will be transmitted automatically via system integration. Companies won’t manually upload each invoice; instead, their accounting or invoicing software will send the required data to the tax authority by the deadlines. This could happen in a continuous flow or in a batch – e.g. software could submit sales invoices one by one as they are issued (some may do so immediately or daily), but the legal deadline is the 6th of next month at the latest. Purchases might be reported when booked or in a batch before month-end. The goal is a seamless digital flow of data “without increasing administrative burden”. The Tax Administration has indicated the interface could be built into either e-invoicing systems, cash register systems, or accounting systems – whichever the business uses for its sales/purchases, ensuring flexibility. For now, this system is not yet active. Companies continue to file periodic VAT returns as usual until e-reporting is legislated and deployed. [wts.com]
  • No Real-Time Invoice Clearance Yet: Importantly, Finland’s model is post-audit reporting, not real-time clearance. E-invoices in Finland today are sent directly from supplier to buyer (through their service providers) without first needing approval from tax authorities. The envisioned e-reporting would send a copy of the data to the Tax Administration, but invoices will still circulate directly between businesses as they do now. There is no central invoicing platform imposing real-time authorization (unlike, say, Italy’s SDI or France’s Chorus Pro). This means businesses can continue their invoicing operations uninterrupted, and compliance is met by forwarding the data to tax authorities within the allowed timeframe. Finland’s tax authority will use this data for cross-checks and to pre-fill returns, rather than to clear each invoice in advance. [theinvoicinghub.com]
  • Summary of Due Dates: Until e-reporting begins, the VAT return deadlines (monthly/quarterly) remain the key dates for VAT data. After implementation, companies will need to ensure sales invoice data is transmitted by the 6th of the following month, and purchase invoice data by the end of the following month (or earlier with the VAT return). These frequencies may be revisited but reflect the latest plan. There is no indication of requiring data “X days after each invoice issuance” beyond the monthly schedule noted. If EU rules impose a stricter timeline for cross-border invoices (e.g. report within 2 days), Finland will enforce that for those transactions in line with the EU directive. [wts.com]
  • Archival Timing vs Reporting: Note that the requirement to archive invoices (discussed below) is separate – archiving must be done for all invoices (electronic or paper) for a set period, regardless of reporting. E-reporting does not eliminate VAT returns entirely; rather, after event-based reporting is in place, the VAT return will be augmented or partly pre-filled (but businesses may still need to confirm or adjust it). [wts.com], [wts.com]

• Penalties for Non-Compliance:
  • E-Invoicing Non-Compliance: For B2G transactions, since e-invoicing is mandated by law, failing to use e-invoicing can lead to consequences. Finnish law doesn’t specify a unique fine for “not e-invoicing,” but public entities have the right to reject any invoice that is not electronic or not compliant. In other words, a supplier who sends a paper invoice to a government agency (when an e-invoice is required) risks non-payment – the buyer can lawfully refuse to process the invoice. This is a strong incentive to comply. Additionally, general public procurement rules might treat non-compliance as a breach of contract. According to external compliance experts, authorities may impose fines or legal sanctions if a business persistently fails to meet the B2G e-invoicing requirements. While specifics aren’t widely publicized (and enforcement so far has relied on the rejection mechanism), companies are expected to adhere or potentially face penalties under the Act 241/2019. For B2B, since there’s no outright mandate yet, there is no direct government fine for sending paper invoices. However, if a buyer exercises their legal right to demand an e-invoice, the seller must comply or risk damaging that business relationship (and the buyer could refuse the invoice). Thus, the “penalty” in B2B is commercial: delayed payment or disputes. [wts.com] [rtcsuite.com]
  • E-Reporting Non-Compliance: Once transaction-level reporting is introduced, we can expect Finland to apply its standard tax compliance penalty regime to it. Typically, failing to file a VAT return or related report on time can result in late fees or penalties. Although Finland hasn’t set the rules yet for e-reporting, it’s likely that late or missing invoice reports will trigger administrative fines (possibly a fixed euro amount or a percentage of tax, as per Finnish tax procedural law). Other countries with similar systems impose fines per invoice or per late report – Finland will determine this in the legislative process. The Tax Administration’s emphasis is on making the system easy and phased, to maximize compliance and minimize the need for punishment. In any case, businesses should plan to integrate systems to avoid omissions. [wts.com]
  • Invoice Content Errors: If an e-invoice is issued but does not contain all required data (not EN16931 compliant), the recipient (whether public or private) can reject it. This effectively forces the issuer to correct and re-send, causing potential payment delays. Repeated failures could be seen as non-compliance with bookkeeping rules as well. [wts.com]
  • General VAT Penalties: It’s worth noting that Finland generally can impose penalties for VAT reporting errors (e.g. a percentage-based tax increase for underreported VAT). If e-reporting data is incorrect or not submitted, it could lead to such assessments. Also, if a company simply doesn’t comply with future e-reporting obligations, the tax authority could estimate their VAT liability and/or issue fines. Exact penalty amounts will likely mirror existing default fine schemes in Finnish tax law once defined.
  • Summary: At present, the main “penalty” for not using e-invoicing where required is that the invoice might not get paid (especially in B2G). There isn’t a specific fine for a private B2B scenario as of now. In the future, non-compliance with mandated e-invoicing or e-reporting will expose businesses to administrative fines and legal consequences, just like failing to file tax returns. Companies are therefore advised to comply proactively to avoid payment issues and potential sanctions. [wts.com] [rtcsuite.com]

• Format and Transmission Method:
  • E-Invoice Format: Finland’s e-invoices must be in a structured electronic format that is standardized. The country has adopted the European Standard EN 16931, ensuring all e-invoices include a common set of information and format structure. Permitted syntaxes include: Finvoice 3.0 and TEAPPSXML 3.0 (Finnish XML formats) as well as UBL 2.1 (Universal Business Language) and CII (Cross-Industry Invoice), which are pan-European formats. In practice, many companies use Finvoice or TEAPPSXML for domestic invoicing; these are ensured to comply with EN16931 requirements (they are essentially localized implementations of the standard). Peppol BIS Billing 3.0 (an EN16931-compliant UBL format) is also gaining traction, especially for cross-border trade and with public administration connections. Finland is moving towards Peppol interoperability – since 2022 the State Treasury acts as the Peppol Authority, and as of April 2024 suppliers to the government must be capable of handling Peppol Order messages (as a procurement requirement). However, there is no single mandated platform or single format – as long as the invoice format meets the standard, it’s acceptable. Both domestic networks and Peppol network are used for transmitting e-invoices. Electronic signatures on e-invoices are optional; Finland, like all EU countries, recognizes methods to ensure authenticity and integrity of invoices, which may include advanced electronic signatures, EDI with agreements, or reliable business controls. Most Finnish e-invoices rely on secure transmission via service providers (which provides an audit trail) rather than signing each invoice, but either way is allowed under EU law. [ec.europa.eu], [ec.europa.eu] [wts.com], [ec.europa.eu] [wts.com] [wts.com], [sovos.com] [sovos.com] [theinvoicinghub.com], [theinvoicinghub.com]
  • E-Reporting Format: As noted, the transmission format for e-reporting will be defined by the tax authority. It will likely be an electronic data file (e.g. an XML schema) containing the required fields per invoice. Finland’s approach is expected to be compatible with the emerging EU Digital Reporting Requirements (DRR) format. Under ViDA, an EU standard for reporting intra-EU invoices will be developed by 2027 – possibly a format like an XML listing or standardized dataset. Finland will probably adopt that for domestic use as well, or at least not diverge significantly. The data will be sent via an online portal or API. We know that Finland does not plan a “central clearance platform” where businesses upload invoices one-by-one. Instead, they envision connecting companies’ systems to the authority. So the format could be, for example, a web service JSON payload per invoice, or a monthly XML file with all invoices, transmitted through a secure channel. Technical details will come in due course from the Tax Administration (likely published on vero.fi or the Real-Time Economy project site). The key notion is that structured data is required – no PDFs or scanned images for reporting. Everything will be digital and automated.
  • Transmission Infrastructure: For exchanging e-invoices between businesses, Finland uses an interoperability network of e-invoicing service providers (also called VANs or operators). Companies typically send their e-invoice to their chosen provider, which routes it to the receiver’s provider (using the recipient’s e-invoicing address from directories like TIEKE’s Verkkolaskuosoite register). This network has been in place for years. Additionally, the Peppol network serves as a transmission channel, especially when dealing with foreign partners or public entities – many Finnish companies and agencies are reachable via Peppol ID as well. There is no government-run central invoice portal for all invoices; instead, multiple interoperable channels exist. For B2G, the government offers two free portals (Handi and Basware Supplier Portal) where suppliers can input or send e-invoices if they don’t have a provider. For e-reporting to the Tax Authority, the “transmission infrastructure” will likely be a secure online service provided by the Tax Administration. Possibly it will be integrated into the existing MyTax (OmaVero) online system that companies already use for filing returns, or a new dedicated interface. The Real-Time Economy project might also deliver an intermediary platform. But fundamentally, it will involve either pushing data from company systems to the authority’s system or pulling data via authorized access. Since it’s not finalized, one can only say that it will be an electronic submission channel, probably an API or upload portal, with transmissions generally due monthly (not invoice-by-invoice clearance). [wts.com], [theinvoicinghub.com] [sovos.com] [theinvoicinghub.com] [ec.europa.eu]
  • Standards and Compatibility: Finland’s adoption of EN16931 standard ensures that format compatibility is high – invoices formatted correctly for Finland’s requirements are generally compatible across the EU. The use of CIUS (Core Invoice Usage Specifications) is minimal; Finland has a national CIUS mainly for public sector VAT needs, published by the State Treasury, but it doesn’t stray far from the core standard (it might specify certain code usages, etc.). As long as an invoice is EN 16931 compliant, Finnish public systems will accept it. This means foreign suppliers can send, say, a Peppol BIS invoice and it will be accepted. For e-reporting, interoperability is also a goal – Finland participates in the Nordic Smart Government initiative to ensure business data (invoices, reports) can flow across borders in real time. So any system developed will likely adhere to international standards (perhaps leveraging Peppol’s upcoming standards for e-reporting as well). [ec.europa.eu], [ec.europa.eu] [ec.europa.eu]

• Archiving Requirements:
  Businesses must archive/store all invoices (regardless of format) for a set period as part of their record-keeping obligations. In Finland, the Accounting Act and tax laws stipulate retention periods: supporting accounting documents (including sales and purchase invoices) must be retained for 6 years after the end of the financial year in which the transaction occurred. For example, an invoice from July 2025, assuming a fiscal year ending Dec 31, 2025, must be kept until at least end of 2031. Some records have longer retention: the main accounting ledgers and financial statements must be kept for 10 years. Also, documents related to real estate transactions may need to be kept for up to 13 years (due to long-term VAT adjustment rules). Generally, 7 years is often cited as the practical retention for invoices (6 + the year of issuance). Finland allows electronic archiving of invoices – paper invoices can be scanned and kept digitally, and e-invoices can be stored in their original electronic form, as long as certain conditions are met. The archiving must ensure the authenticity, integrity, and readability of invoices for the entire retention period. This means the data cannot be altered, and it must be accessible in human-readable form if needed (for example, an XML invoice might be rendered with a viewer when requested). Techniques to guarantee integrity include using internal controls or digital signatures, etc., per EU VAT Directive rules. Finland does not currently mandate a particular e-archiving solution – companies can use their own systems or third-party archive services. The location of storage can be in Finland or another EU country, but typically tax authorities should be able to get access to them on request. Under the coming e-reporting, since authorities will already receive transaction data, audit demands for archived invoices might reduce – but the legal duty to retain source documents will remain (the company must have the original invoice or an exact copy available). In summary, Finnish companies must keep their e-invoices for at least 6+ years in a secure, orderly manner. The formats should be preserved; using standard formats like XML ensures they can be read in the future. The existence of a central transaction report does not remove this obligation. Archiving can be fully digital, which e-invoicing readily facilitates. Many businesses integrate invoice archives with their accounting systems, often automating retention and deletion when the time limit expires (subject to the minimum legal period). Compliance with archiving rules is important because failure to retain invoices can itself result in penalties under accounting law, and it can complicate VAT audits. Finland’s robust e-invoicing practices (including automatic archiving by service providers) help companies meet these requirements. To note, Finland’s approach to archiving aligns with most EU countries: 6-year retention for invoices (similar to Sweden, etc.), and longer for annual accounts. Always ensure archived e-invoices maintain their original content and structure, and that you can retrieve specific invoices if the Tax Administration requests them during an audit. [finrepo.fi] [invopop.com] [sovos.com] [roedl.com], [sovos.com]

• Pre-Filled VAT Returns:
  As of now, Finland does not provide pre-filled VAT returns to businesses. Each taxpayer must compile and file their own VAT return with the total sales, purchases, and VAT amounts for the period. However, a key long-term goal of the Finnish Tax Administration’s digitization program is to enable an optional pre-filled VAT return based on the invoice-level data that will be reported in the future. The vision is that once all sales and purchase information is being submitted through the e-reporting system, the tax system could automatically aggregate that data and prepare a draft VAT return for the taxpayer. In an ideal scenario, the business would then simply review the pre-calculated figures, make any necessary adjustments (for special cases like partly deductible VAT, etc.), and confirm the return. This would greatly simplify compliance for those who trust the system. The Tax Administration has emphasized that this would be optional – companies could choose to use the pre-filled return or continue to compile their own if they prefer. The reasoning is that not all necessary info may come from invoices alone (e.g. some corrections or special VAT schemes might require manual input), so the pre-filled return is meant as a help, not a mandate. Currently, no pre-filled VAT return exists because the authorities do not have the transaction data; they only receive the totals which the taxpayer itself calculates. But with the implementation of invoice-specific reporting (even if only monthly), the tax authority’s data will start approaching what’s needed to draft returns. It’s expected that smaller companies might be the first to benefit from pre-filled VAT declarations, once their complete sales/purchase data is routinely available – Finland mentioned that the pre-filled return could become available to the “smallest companies” as soon as the data is sufficiently comprehensive. This suggests a phased rollout, potentially a few years after the e-reporting begins. It’s a long-term objective and “practical implementation requires further clarification” as the Tax Administration stated. So, in summary: today there are no pre-filled VAT returns in Finland (unlike pre-filled personal income tax returns, which Finland does provide). But in the future, as part of the real-time economy initiative, companies may opt into having their VAT returns pre-drafted by the Tax Administration based on the e-invoice data collected. Until then, all VAT filings are prepared by taxpayers themselves. Even after introduction, businesses will likely always have the ability to correct or supplement the pre-filled data before submission – ensuring that the responsibility and control over the final return remain with the taxpayer (the pre-fill is to simplify, not to take away the company’s reporting duty). [wts.com]

• Relevant Regulations and Resources:
  • National Law: The primary Finnish legislation for e-invoicing is Act 241/2019 (laki sähköisestä laskutuksesta), which transposed EU Directive 2014/55/EU into Finnish law. This act mandates public sector e-invoicing and grants the right for businesses to use e-invoices. It effectively establishes the 10,000 € turnover exemption and the requirement of EN 16931 compliant content. Another relevant law is the Accounting Act (1336/1997), which governs archiving (as discussed). When Finland moves forward with e-reporting, new legislation or amendments will be passed – likely an update to the VAT Act or a dedicated act for digital reporting. As of end-2025, no such law is in force yet – only proposals and statements exist. [wts.com] [finrepo.fi]
  • EU Law: Finland’s policies are closely tied to EU directives: Directive 2014/55/EU on electronic invoicing in public procurement required public bodies to accept e-invoices and is implemented by Finland (hence B2G mandate). Looking ahead, the VAT in the Digital Age Directive (EU 2025/516) will shape Finnish rules on e-invoicing and reporting for B2B. This directive (formally adopted in 2025) amends the EU VAT Directive (2006/112/EC) to allow mandatory B2B e-invoicing without needing approval (removing the buyer’s consent clause by 2024), and to introduce digital reporting requirements (DRR) for intra-EU transactions by 2028–2030. Finland will amend its VAT Act in line with these changes – for example, by removing the current requirement that invoice recipients agree to receive e-invoices (since EU law will make e-invoicing the default). By July 2030, Finnish law must require intra-EU B2B invoices to be electronic and reported digitally. These EU-level changes provide the framework for Finland to potentially also mandate domestic e-invoicing (subject to certain conditions). [wts.com] [theinvoicinghub.com]
  • Government and Tax Authority Resources: The Finnish Tax Administration (Verohallinto) provides guidance on invoicing and VAT on its website (vero.fi). The Ministry of Finance (Valtiovarainministeriö) has information on the Real-Time Economy project and digitalization of invoices on its site (e.g., under “Value Added Tax” or “Real-time economy” initiatives). A specific project site, Yrityksen Digitalous (Business Digital Economy, yrityksendigitalous.fi), has been set up to disseminate information on e-invoicing, e-receipts, and real-time reporting – this is a collaboration platform supported by the Finnish government, with updates and documentation (some in English). For technical details, the State Treasury (Valtiokonttori) publishes info about public sector e-invoicing (including the CIUS specifications and how to use the Handi service). Also, the Finnish Information Society Development Centre (TIEKE) maintains the e-invoice address registry and hosts the e-invoicing forum, providing practical guidelines for businesses (tieke.fi, verkkolaskuosoite.fi). [wts.com] [ec.europa.eu], [ec.europa.eu] [wts.com], [theinvoicinghub.com]
  • Recent Articles & Newsletters: Up-to-date insights on Finland’s e-invoicing and e-reporting plans can be found in industry publications. For example, WTS Global’s December 2023 report “Current situation and development of e-invoicing and e-reporting in Finland” summarizes the ongoing projects and plans. The Invoicing Hub (August 2025 update) provides a concise compliance overview. Sovos and EDICOM (Jan 2025) have released country guides echoing these points, highlighting that while B2B e-invoicing isn’t yet mandatory, over 90% of Finnish B2B invoices are already electronic and that a mandate will align with the EU timeline. KPMG and Big4 newsletters also note Finland’s cautious approach – focusing on infrastructure and waiting for ViDA. In July 2023, the Finnish government published a high-level roadmap for real-time economy (e-invoicing, e-receipts, and eventually e-reporting), but explicitly without fixed dates for a B2B mandate at that stage. All recent commentary reinforces that big changes (like mandatory B2B e-invoicing and continuous VAT reporting) are expected around 2025–2030, in sync with EU reforms, and that Finland is currently building the necessary ecosystem to make that transition smooth. [wts.com], [wts.com] [theinvoicinghub.com], [theinvoicinghub.com] [sovos.com], [sovos.com] [knowledgen…or.pwc.com]
  • Key Takeaway: Finland’s framework is grounded in EU law and Nordic digital practices. Companies operating in Finland should already be using e-invoicing for public sector clients and be ready to accommodate partners who request e-invoices. Over the next few years, they should prepare for more extensive reporting of invoice data to the tax authority, keeping an eye on Finnish legislative developments and EU mandates (ViDA). Compliance is aided by the fact that Finland leverages international standards (so solutions used elsewhere in the EU will generally work in Finland too). By maintaining proper e-invoicing processes now – including using the correct formats, ensuring data quality, and archiving invoices for the required period – businesses will be well-positioned for the upcoming e-reporting era in Finland. [wts.com], [rtcsuite.com]

• See also
  • E-Invoicing/Real Time Reporting – What can you find on VATupdate.com
  • Worldwide Upcoming E-Invoicing mandates, implementations and changes – Chronological
  • Country Profiles on E-Invoicing, E-Reporting, E-Transport, SAF-T Mandates, and ViDA Initiatives

• Join the Linkedin Group on Global E-Invoicing/E-Reporting/SAF-T Developments, click HERE
• Join the LinkedIn Group on ”VAT in the Digital Age” (VIDA), click HERE