Light Entrepreneur Invoicing Abroad – A Comprehensive Guide

Table of Contents

1. Why invoice abroad? The new era of remote work and freedom
2. Light entrepreneurship in a nutshell
3. Scenario 1: You invoice a foreign client from Finland
4. Scenario 2: You work and invoice from abroad as a light entrepreneur
5. Checklist for international invoicing
6. Summary: Boldly towards international markets

Why invoice abroad? The new era of remote work and freedom

Remote work has revolutionized the way we think about employment. We’re no longer tied to a specific office—or even our hometown. Work now travels with us in a laptop bag. This freedom has opened doors for many professionals who want to combine work and travel or serve clients around the world.

Light entrepreneurship fits perfectly into this new world. It offers an easy and low-risk way to test your wings as an entrepreneur without the bureaucracy of establishing your own company. But what happens when your client is outside Finland?

Many light entrepreneurs wonder:

• Can I invoice a client who lives abroad?
• How do I handle value-added tax (VAT)?
• What if I want to work under the Spanish sun—how do invoicing and taxes work then?

This guide is for you. We’ll walk through, clearly and with examples, how light entrepreneur invoicing works both abroad and for foreign clients. No more uncertainty—just clear, practical advice to help you go international.

Light entrepreneurship in a nutshell

Before diving into international invoicing, let’s quickly recap what light entrepreneurship means.

A light entrepreneur sells their own expertise and invoices for the work done without having a business ID (Y-tunnus). The process runs through an invoicing service, such as FlexWork.

Here’s how it works in practice:

1. You agree on the job with your client.
2. You complete the work.
3. You create an invoice easily through the invoicing service platform.
4. The invoicing service sends the invoice, handles paperwork, tax payments, and all obligations.
5. Once the client pays, the invoicing service pays you as salary.

Light entrepreneurship is a flexible way to employ yourself and focus on what matters—doing the work you love. It’s perfect as a side activity alongside studies or a job, or even as a full-time way to work entrepreneurially.

Scenario 1: You invoice a foreign client from Finland

This is the most common case: you live in Finland, but your client is abroad. Whether you’re a graphic designer, translator, or IT consultant, the world is full of potential clients. Sending an invoice abroad is as easy as sending one within Finland—as long as you remember a few VAT-related details.

Value-Added Tax (VAT) – How it works in international trade

VAT is a consumption tax added to most goods and services. In Finland, the general VAT rate is 25.5%. When you invoice a Finnish client, you add this tax to your invoice total.

In international trade, however, the rules change. How VAT is handled depends on three things:

1. Are you selling a service or a product? (Light entrepreneurs usually sell services.)
2. Is your client a business (B2B) or a private individual (B2C)?
3. Is your client located within the EU or outside it?

Let’s look at these cases with examples.

Invoicing an EU-based business client (B2B)

When selling a service to a business in another EU country that has a valid VAT number, you generally apply reverse charge.

What does reverse charge mean? It means that you, as the seller, do not add Finnish VAT to the invoice. Instead, the buyer is responsible for calculating and paying the VAT in their own country according to local rules.

This simplifies cross-border trade considerably.

What to do:

1. Ask your client for their VAT ID. You can verify it using the EU’s VIES system.
2. Create the invoice without VAT (set VAT rate to 0%).
3. Include your client’s VAT number.
4. Add a note about reverse charge on the invoice, for example:
   • “Reverse charge"
   • "VAT 0%, intra-EU sale"
   • "ALV 0%, service sale to another EU country, VAT Act §65”

Example: Maria, a Finnish marketing consultant, does a project for a German company in Berlin. She adds the German VAT ID (e.g. DE123456789) to the invoice, sets the VAT rate to 0%, and writes “Reverse charge.” The German company handles the VAT locally.

Invoicing an EU-based private customer (B2C)

If your client is a private individual in another EU country, the rule changes. In most cases, you must add the Finnish VAT rate (25.5%).

So, you invoice exactly as you would for a Finnish consumer: add 25.5% VAT, and the invoicing service will remit it to the Finnish Tax Administration.

Example: Pekka, a personal trainer, sells an online coaching package to a private client in Sweden. Because the client is a consumer, Pekka adds 25.5% VAT to the invoice.

Note: For certain digital services (telecom, broadcasting, or electronic services), there are special rules. If your annual sales to EU consumers exceed €10,000, VAT must be paid to the buyer’s country via the EU’s One Stop Shop (OSS) system. Most light entrepreneurs won’t need this, as invoicing services will guide you if needed.

Invoicing outside the EU

If your client is outside the EU (e.g. the USA, Norway, or the UK), your service sales are usually VAT-exempt. It doesn’t matter whether the client is a company or a private person.

Sales of services outside the EU are considered service exports, and are almost always VAT 0%.

What to do:

1. Create the invoice with a VAT rate of 0%.
2. Add a note explaining the exemption, such as:
   • “VAT 0%, sale of services outside the EU"
   • "ALV 0%, service export outside the EU”

Example: Tiina, a web developer, designs a website for a U.S. startup. She invoices in dollars, sets VAT to 0%, and adds “VAT 0%, sale of services outside the EU.”

Required information on international invoices

The same basic information as on a domestic invoice, plus a few extras:

• Your details (invoicing service name, business ID, address)
• Client’s full name and address
• Invoice date and number
• Description of work
• Price (excluding VAT)
• VAT rate and amount (even if 0%)
• Total amount
• Payment terms and due date

Additionally for international invoices:

• Client’s VAT number (for intra-EU B2B sales)
• Statement of tax exemption or reverse charge
• IBAN and BIC/SWIFT for payments.

Invoicing services like FlexWork automatically generate compliant invoice templates.

Scenario 2: You work and invoice from abroad as a light entrepreneur

What if you are the one packing your bags and heading abroad? Can you continue using a Finnish invoicing service? Yes, you can!

VAT rules remain the same since you still operate through a Finnish invoicing service. However, taxation and social security become key considerations, depending on how long you stay abroad.

Short-term stay abroad (under 6 months)

If you work temporarily abroad—say, a few weeks or months—the situation is simple.

• Taxation: You are still generally taxable in Finland, meaning you pay taxes to Finland on all income, including what you earn abroad. The invoicing service withholds taxes as usual based on your Finnish tax card.
• Social security: You remain covered by Finland’s social security system (Kela benefits and pension accrual).

Tip: If you work in another EU/EEA country, Switzerland, or the UK, apply for an A1 certificate from Kela. It proves you’re covered by Finnish social security and prevents double social fees abroad.

You can handle invoicing just as if you were in Finland—all you need is a reliable internet connection.

Long-term stay abroad (over 6 months)

If your stay abroad exceeds six months, things get more complex. You may become taxable in your country of stay and move under its social security system.

These rules vary by country and depend on international tax treaties.

Key tax and social security concepts

General tax liability in Finland:

• Usually ends when you permanently move abroad.
• Finnish citizens are subject to the three-year rule: you remain generally taxable in Finland for the year of departure and the following three years unless you prove you have no significant ties (e.g. home, family, or social security) in Finland.

Local tax liability:

• If you stay in another country for more than 183 days per year, you likely become tax resident there, meaning that country can tax your income earned while working there.

Social security:

• Typically, you are insured in the country where you work. If you move permanently abroad, your Finnish social security coverage usually ends.

Important: If you plan to stay abroad long-term, always check your status in advance with the Finnish Tax Administration and Kela, and consult local authorities or a tax expert if necessary.

Using a Finnish invoicing service from abroad

You can keep using your Finnish invoicing service while abroad, but you’re responsible for ensuring compliance with your country of residence’s tax and social security rules.

In practice:

1. The invoicing service withholds Finnish taxes unless you provide proof that you are no longer taxable in Finland (e.g. a source tax card).
2. You must report and pay taxes in your country of residence according to local rules.
3. You can apply for double taxation relief, meaning taxes paid to Finland are credited in your country of residence.

It takes a bit more effort—but it’s completely doable.

Checklist for international invoicing

International invoicing may seem complicated at first, but once you grasp the basics, it’s simple. Here’s a quick recap:

• Check client type: Business or private? Inside or outside the EU?
• EU business (B2B): Request VAT ID, apply reverse charge (0% VAT), add a note on the invoice.
• EU consumer (B2C): Invoice with Finnish VAT (25.5%).
• Outside the EU: Usually VAT-free (0%).
• Double-check invoice details: Include IBAN, BIC, and all required info.
• Working abroad:
  • Under 6 months: Usually taxed in Finland and covered by Finnish social security. Apply for A1 certificate in the EU.
  • Over 6 months: Verify tax and social security status in your destination country.
• Ask for help: Contact your invoicing service or the Tax Administration if unsure.

Summary: Boldly towards international markets

The world has become smaller, and your expertise is in demand everywhere. As a light entrepreneur, you have a great opportunity to serve clients globally—or to live your dream by working from anywhere.

International invoicing requires some understanding of VAT and tax rules, but they’re logical and straightforward once learned. Sending an invoice to Berlin can be just as easy as sending one to your neighboring town.

Remember—you’re not alone. Invoicing services exist to make entrepreneurial life easier, and their support teams are happy to assist you anytime.

So don’t let borders hold you back. Seize the opportunity, expand your network, and take your skills global.