Receipts for business purchases

[jenvesi]

I've just started a new toiminimi in Finland and my laptop finally died just today. I'd like to buy a new one on my business but am unsure of a couple of practicalities.

Do I need to provide a business number upon purchase? Can I purchase vat free given it's business to business? Or do I just buy like regular and deal with business related deductions from the receipt later?

Any help most appreciated

Jen

[Upphew]

Do I need to provide a business number upon purchase? Can I purchase vat free given it's business to business?

From Finland, no. From Germany, yes. But keep your eye on small details like qwerz keyboard and language of pre-installed os.

Or do I just buy like regular and deal with business related deductions from the receipt later?

That's the way it is done here. You might get quotes in VAT0% if you tell that you are going to buy it as a business, but you will have to fork out the remaining 23%, which you can then deduct from the vat you collected.

edit. and as I don't have my own company, I have a hunch that someone will come and set me straight

[Rosamunda]

In order to claim back purchase VAT (eg from the purchase of a computer) you need to send in some sales-VAT. If you do an annual tax return in the Vero Tax Account then I think you can effectively net off the sales VAT and the purchase VAT (if they occur in the same accounting period) so there is no impact on your cash flow. Vero will not refund VAT if you have not generated VAT through your sales.

This does not stop you deducting the cost of the computer as a business expense from your income (which would reduce your income tax).

[MikeD]

Vero will not refund VAT if you have not generated VAT through your sales.

Yes they will (it all changed when they took the Verotili in use). It is not at all unusual for new businesses for the first month or two to have no sales at all but a lot of set-up expenses, meaning that they'll be reclaiming the VAT they've paid. If you're trying to claim back thousands of euros they'll ask you to provide copies of the bills and receipts and an explanation of how the expenses relate to the business, but that's it.

[Rosamunda]

So you're saying you can actually have a debit balance in your tax account? For how long?

Do new TMIs/companies have to submit monthly? What is the default mode for start-ups? I have an Oy and I am only required to do an annual VAT return now.

[MikeD]

So you're saying you can actually have a debit balance in your tax account? For how long?

Do new TMIs/companies have to submit monthly? What is the default mode for start-ups? I have an Oy and I am only required to do an annual VAT return now.

Most businesses regardless of type submit monthly, it is only upon request (or if the tax official deems it appropriate based on the information you provide) that the quarterly or annual VAT submission periods are used. The tax account is supposed to work like any bank account, with interest being paid or charged based on the balance. Unless you have an outstanding balance, any payments from Vero - VAT refunds or corrections and such - will be transferred onto your bank account assuming you've provided the details.