Under the Value Added Tax Act, the City of Helsinki is regarded as an entrepreneur that engages in the sale of construction services in a capacity that can be considered other than occasional. Therefore, reversed tax liability is applied to the City of Helsinki as a purchaser of construction services.
Reversed tax liability means that the tax liability falls on the purchaser of a service. Since reversed tax liability is a derogation rule, both the seller and purchaser must know when it is applied.
The divisions and municipal enterprises of the City of Helsinki form a single taxable entity with the business ID 0201256-6 and VAT number FI02012566.
Sending an invoice to the City of Helsinki
When preparing an invoice, you must know the following:
- The nature of the service to be purchased: Is the service a construction service?
- Invoicing practice: Is the invoice tax free or subject to tax? If reversed tax liability is applied to the invoice, it is tax free.
- Requirements on invoice entries. In addition to normal entries, the invoices require the City’s business ID 0201256-6 and the following in some form: Reversed tax liability, Value Added Tax Act, Section 8(c)
If the invoice entries are not appropriate, the seller must send a new invoice.