Published 4.4.2025 ∙ Updated 22.5.2025
Light entrepreneur and VAT 0%: Why a light entrepreneur cannot invoice without VAT through Kevyesti.fi - important information on VAT liability
One of the most common questions we receive from Kevyesti.fi invoicing customers is about VAT and invoicing. In particular, light entrepreneurs, especially those just starting out, are often under the impression that they can charge 0 % VAT if their annual income is less than €20 000. This is an understandable but unfortunately incorrect perception. In a billing service like Kevyesti.fi.
In this blog, we will clearly explain why a light entrepreneur should invoice for VAT through Kevyesti.fi and when VAT exemptions may apply.
VAT liability and the EUR 20 000 threshold - what's at stake?
In Finland, a company is liable for VAT if its turnover exceeds EUR 20 000 during the financial year. This limit applies to company turnover - not the income of an individual person. So, for example, if you operate a business under your own business name and your turnover is less than €20 000 a year, you do not need to register for VAT.
But when a light entrepreneur uses a billing service, he or she does not use his or her own y-identity, but instead uses the business ID of the service provider - such as Kevyesti.fi Oy. This makes an essential difference.
Through Kevyesti.fi you will be billed with our y-identifier
Kevyesti.fi acts as a payment intermediary between the entrepreneur and the customer. When you use our service, the invoice is sent to the customer In the name of Kevyesti.fi Oy and under the trading name. This means that:
- Invoicing does not take place in the light entrepreneur's own name or under his/her business ID number
- VAT liability is determined on the basis of Kevyesti.fi Oy's total turnover
- The turnover of Kevyesti.fi Oy is well over 20 000 euros, so we are VAT-registered
For this reason all invoices sent via Kevyesti.fi include VAT (normally 25.5 %, unless it is a reduced rate service or other special case).
When can 0 % VAT be possible?
There are some situations where the VAT rate can be 0 %, but these relate to certain legal exceptions, not to a person's annual income. These may include, for example:
- International trade: service sold outside the EU
- Performance fees
If you are not sure whether your service is subject to VAT or whether it would qualify for a reduced or 0 % rate, contact our customer service - we're happy to help.
Summary - why can't you exclude VAT through Kevyesti.fi?
- Easy.fi invoicing service always use Kevyesti.fi Oy's business ID
- The VAT liability is based on the total turnover of the service provider (i.e. us)
- Kevyesti.fi Oy's turnover exceeds 20 000 euros → we are liable for VAT
- Therefore, all invoices are subject to VAT, even if your personal income is below the threshold.
Need help? Contact us!
At Kevyesti.fi, we want you to focus on business and customer work without the extra bureaucracy. If you have any questions about VAT or other issues related to light entrepreneurship, please feel free to contact our customer service:
