Question about online tax payments for toiminimi

[filecore]

Okay, I'm new to this online thing and to be honest, in previous months I've employed an accountant to do it for me on a monthly basis. I'm not happy with her service quality and coupled with the fact that I can now make it quarterly, I've decided to try it myself with the online service. However, I'd like to make sure I understand it properly.

First I go to vero.fi -> Verotili -> log in -> Ilmoittaminen -> Arvonlisäveron ilmoittaminen

From the first field I select (in this case): Neljännesvuosi -> Kohdekausi 1 (Tammi-maaliskuu) -> Vuosi 2010

Let's say, for the sake of easy calculations, that I invoiced 1000 euros this quarter. VAT at 22% comes to 220 euros.

I presume that in the field 301 22 %:n vero I would fill in my grand total = 1220

From this point, there's a Jatkaa button but I'm afraid to press it without having the right figures in place (and anyway, it's too early since I don't know February and March totals yet). Am I correct so far? I presume that I will put my sum into field 301 and it will be calculated, but I don't know whether this is supposed to be the total from the invoice (including VAT) or what - for all I know, I put in my total before VAT and it performs that calculation itself. And then after that, what happens? Gah, I hate learning new systems.

[Rosamunda]

That is top of my list of things to do. I was going to sit down with my Significant Finnish Speaking Other Half tonight to do the VAT return. The info pack we received is, of course, all in Finnish so I need his help. I emailed http://www.intofinland.fi to ask if Vero were running any information sessions in English and they finally replied (it took about 3 months) that no, there are no training sessions in English. But there is a guide in English....

Have you downloaded the Tax Account Guide on this page (PDF file click on "Periodic Tax Return - Instructions") ?

http://portal.vero.fi/Public/default.as ... ntentlan=2#



When I've done mine, I'll get back to you.

[filecore]

Thanks for that! I'll have a look at the document (which seems to have downloaded as "Periodic", no extension - I had to make it PDF manually) and see if it explains things at all well, and I look forward to hearing back on your own experiences. Now if only we could do the annual return (form Y5) online too... or can we?

[filecore]

Any word on this?

[Rosamunda]

We (my husband) was supposed to call the tax office today to find out why we have been asked to make a monthly submission instead of quarterly since we are well under the limit. So, no, we haven't done ours yet and if we don't get the OK on the quarterly submission then I guess we are already late for JANUARY!!!

My understanding from the info pack (the pdf file I linked to above page 9) is that on line 301 you enter the VAT amount only.

So if you have invoiced 1000 euro (excluding VAT) to your customers then you enter 1000 x 0.22 = 220 €

So, 220€ is the amount you enter on line 301.

But, I have NOT done mine yet so I can't confirm. I need to sit down with my husband to figure this out.

Did you notice that the periodic tax return is due on the 12th of the month following the period. So if you are filing quarterly then you must submit by 12th APRIL (Previously it was the 15th of the month after the month following the accounting period, so 15th March for January's VAT).

[filecore]

Did you notice that the periodic tax return is due on the 12th of the month following the period. So if you are filing quarterly then you must submit by 12th APRIL (Previously it was the 15th of the month after the month following the accounting period, so 15th March for January's VAT).

Actually this is not correct. According to a shorter bulletin I got from the Verotoimisto, if you are filing quarterly and your turnover for the year does not exceed 50,000 euros, the filing deadline is on the 12th of the second month following the end date of the quarter; i.e., the Q1 (January-March) due date is 12 May. I can't find a copy of the bulletin online, but I can scan it and stick a copy online if you want to see it yourself.

EDIT: here it is, check out the section at the top of the second page - Bulletin: Introduction of tax account for self-employed individuals and businesses in 2010 (PDF, 227KiB)

[Rosamunda]

Yes, looks like you are right! Recap here:

http://portal.vero.fi/Public/default.as ... ntentlan=2

[filecore]

Right, I visited the tax office today, and it turns out that for the past couple of years, I've been Doing It Wrong. My recently-fired accountant, may she burn in the lower circles of hell for all of eternity, failed to mention any of these facts to me while she was in charge of processing and submitting my monthly tax returns.

Firstly, here's what I've been doing:

1. Invoice client for job
2. Add VAT
3. Pay VAT to tax office (monthly)
4. Claim expenses in Y5 at the end of the year (total value of expenses, including VAT)

Now, here's what I should have been doing:

1. Invoice client for job
2. Add VAT
3. Claim the VAT from that month's expenses
4. Pay VAT to tax office (monthly), minus the expenses VAT in point 3
5. Claim expenses in Y5, minus VAT, at the end of the year

Apparently, that's what those other fields in the verotili page are for. Here's how it was explained to me:

301: the VAT sum from my invoice (if I invoiced 1000 euros, the VAT is 22% = 220 euros)
305: the VAT value for that month's business expenses, which have been bought from EU countries
306: the VAT value for that month's business expenses, which have been bought from non-EU countries
307: value of that month's business expenses, not including VAT
313: the total value of business expenses from other EU countries; basically, the sum of 305 + 307

and so on. If there's any training courses I can attend, please do let me know, because obviously it's going to be hard to learn this stuff otherwise. The tax office certainly tries to be helpful, but fails miserably; the girl I was talking today, for example, had heard nothing about a future rise in the VAT level from 22% to 23% during the coming year. Either I - and several on this board - are mistaken about that, or the tax office's representative is failing somewhat at the basic functions of her job.

[Rosamunda]

I agree about the advice , I emailed the "intofinland" tax office to ask if there were any courses being run in English and then answered (3 months) later saying no. Then I learnt that the TE-Keskus had just run a course in English

I'm pretty sure we could get something set up, I could possibly even organise a classroom and maybe even find a teacher who speaks English. But I am really really busy at the moment. Will see what I can find out next week and get back to you. Maybe I E S A F would sponsor it, it's the kind of thing they do sometimes.

[tiliavain]

Hello everyone!
This is my first post, I'm glad to have joined the forum.
I'm also registered as a private trader since August, but my first two invoices were "Sales of Services to other EU Member" (thus not VAT liable).
However last 30th November I invoiced a company in Finland, and I wonder if VAT is the only tax I should declare and pay via Verotili (given that I don't have employees for example). It seems that Verotili does not regulate any income tax for example, so I'd like someone to confirm this.

In addition, I have received a complex form with my Tax estimation for 2010, and two installments for my prepayment taxes (Ennakkovero yhteensä). To be honest I don't know how to calculate the final total, but my assumption is that this is my income tax, is it correct?

Thank you

Half

[filecore]

It seems that Verotili does not regulate any income tax for example, so I'd like someone to confirm this.

Confirmed. Income tax is a function distinct from your toiminimi, because it also applies to earnings taken on tax card (you can work as a freelancer for other employers, for example, while also earning through your toiminimi). It's applied to total earnings after deductions. The Verotili deals purely with VAT issues.

In addition, I have received a complex form with my Tax estimation for 2010, and two installments for my prepayment taxes (Ennakkovero yhteensä). To be honest I don't know how to calculate the final total, but my assumption is that this is my income tax, is it correct?

Ennakkovero is calculated based on your prediction of how much you will earn for the year, and then a tax applied based on the predicted amount. You may pay it monthly, quarterly, annually or whatever - I pay mine bi-monthly, by choice. If your actual earned income (after deductions) doesn't match your ennakkovero calculated amount, there will be an adjustment. If you earned more, the adjustment comes in the form of a bill. If you earned less, it comes in the form of a tax return the following December.

[Rosamunda]

However last 30th November I invoiced a company in Finland, and I wonder if VAT is the only tax I should declare and pay via Verotili (given that I don't have employees for example).

When you registered your TMI did you register for VAT?
If your total revenue for the 12 months accounting period is less than 8500 euro (needs to be confirmed) then you do not have to pay VAT.
If you do pay VAT but your annual turnover at the end of the accounting period is less than 22500 euro (????) you can claim some of it back (there is just a form to fill in).

(* you need to check the thresholds as I think they might have changed or are about to change).

[filecore]

If you do pay VAT but your annual turnover at the end of the accounting period is less than 22500 euro you can claim some of it back (there is just a form to fill in).

Coo. Do you know which form it is?

[Upphew]

Coo. Do you know which form it is?

Arvonlisäveron alarajahuojennuksen tiedot ilmoitetaan kausiveroilmoituksella, joko tilikauden viimeisellä kuukaudella tai kalenterivuoden viimeisellä kohdekaudella riippuen asiakaskohtaisesta ilmoitusjakson pituudesta. Erillistä arvonlisäveron alarajahuojennushakemusta ei tehdä.

[filecore]

Aww.