Can I do product sales?
This article is meant for OP Light Entrepreneur users with Business ID.
You can add the products purchased for resale or the raw materials used to manufacture them as an expense in the service, which will reduce your taxable income. In the end, you only pay tax on the margin and any possible service sales of your own.
TIP
When creating an invoice, you can specify the line type as Resale of goods or services and select "Prepayment tax is not withheld tax from that invoice row". Note that no withholding tax is also withheld on any profit margin. Also note, that no withholding tax is withheld on any profit margin.Note accounting stock limits
The goods intended for resale are to be transferred to the customer during the same financial year, i.e. the calendar year, as due to accounting restrictions no goods for resale with a total value of more than €1,000 can remain in stock. If you have more than €1,000 worth of resaleable goods remaining in your stock at the end of the year, please contact us via our customer service chat and we will sort out the situation.
Product and material costs are deductible
Products sold to a customer are primarily taxable sales, but you can deduct the purchase price of these products in your user account by adding them to your expenses using the New Expense function.
The deduction will reduce your company's profit by the amount of the purchase price and the VAT portion will also reduce the VAT payable on your sales. You may therefore receive VAT refunds in due course in connection with your VAT return.
Other limitations to be taken into account in product sales
- Product sales can currently only be made to Finnish consumers and businesses.
- Vehicles and buildings cannot be purchased for sale.