Light entrepreneurs – how to take care of taxes
The commonly used name “light entrepreneur” (kevytyrittäjä) applies if you are self-employed, you are in business for yourself, but you do not own a company.
To do business this way means that you use an invoicing service to send invoices to your customer (that pays you for the work you do). Your customer makes its payments to the invoicing service company, which in turn pays you. However, you are the person who advertises your work performances, and you agree with your customer on the terms and conditions of your work including how much the customer will pay for it.
Instructions for dealing with taxes
Do you work as a light entrepreneur or do you use a mobile application to receive job orders, such as food delivery? Answer the wizard’s questions to receive tailored instructions.
How does the invoicing service work?
Invoicing service companies have different ways of operating. An invoicing service company can pay you wages or trade income. See what kind of tax card is suited for you.
In employment and social insurance legislation, individuals using an invoicing service company are usually regarded as entrepreneurs. This means that as a light entrepreneur you must take out insurance in accordance with the legislation on entrepreneur’s pension, provided that certain conditions are met. For more information, go to tyoelake.fi/en.
If you receive trade income from your invoicing service company for more than €15,000 a year, you become liable to pay VAT, value-added tax. You must submit an application for VAT registration in MyTax or through our other services for taxpayers. Read more about value added taxation of light entrepreneurs.
You can read more about how invoicing service companies operate on their websites.
Employee or self-employed? If you are unsure whether you are an employee or self-employed, see the Occupational Safety and Health Administration’s instructions to find out.