Value added tax entries for construction services

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.

More information: talpa.asiakaspalvelu (at) opens default mail program), tel. +358 (0)9 310 25300(Link starts a phone call)