Self-employed. VAT reduction for small businesses

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Rosamunda
Posts: 10609
Joined: Fri Jan 02, 2004 12:07 am

Self-employed. VAT reduction for small businesses

Post by Rosamunda » Mon Mar 02, 2015 10:50 pm

If you are an entrepreneur, self employed with any kind of company (T:mi, Oy etc) and your annual revenue is less than 22 500 euro you are entitled to a reduction in your net VAT liability. This is called "lower limit relief".

Read page 38 in this guide: http://www.uusyrityskeskus.fi/sites/uus ... 13_web.pdf

The relief is not given automatically: you have to apply for it when you file your tax return (which is right now if you are on an annual return basis). You can do the calculation yourself and deduct the relief from the VAT you submit when you make your bank transfer but make sure you get the numbers right!!! If in any doubt call the Tax Office directly. (Disclaimer: it's not my fault if you get the numbers wrong.)

If you have a bookkeeper, then it might be a good idea to double check that "lower limit relief" has been applied for.

:lightbulb:



Self-employed. VAT reduction for small businesses

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