Finland to compel public institutions to receive electronic invoices
As of 1 April 2020 all public institutions in Finland must be able to receive and manage electronic invoices which meet the requirements established by the European Union in Directive 2014/55/EU. This requirement is determined by the Electronic Invoicing Act for contracting entities and retailers (241/2019) that transposes the European directive approved by the Finnish parliament.
Electronic invoices must also comply with the Finnish tax administration's “VAT Invoicing Requirements” and follow European standard EN16931 specifications.
The national e-invoicing formats Finvoice and Teapps used to date have now been adapted to the European standard in their latest 3.0 versions.
The primary aim of the law is to optimize public procurement and foster the use of electronic invoices and to that end it recognizes the right a public or private entity has to receive its invoices electronically if it seeks this (4 §, HE 256/2018). This right is applied to all organizations that invoice in excess of 10,000EUR per year.
In Finland, e-invoicing has been enabled in the B2B sphere since 2010. Although its use has been voluntary until now, use of the electronic invoice is very widespread, proof being that 92% of invoices that reach the central government today are electronic, according to figures from the e-invoicing state website.
The EDICOM global e-invoicing solution is designed to manage electronic invoices in line with the requirements of the Finnish tax agency and can issue and receive them in Finvoice 3.0 and Teapps 3.0 formats and integrate them in any management system.