Can I practise rental activities?

This article is meant for OP Light Entrepreneur users with Business ID.
In addition to the sale of services, OP Light Entrepreneur can also be used to invoice the rental of goods and machinery, such as outdoor hot tubs. You can purchase machines or equipment for rental and deduct the cost of these in your accounts. Send an invoice directly from the service or receive rental income by other means, for example through a payment terminal.

You can add products, machinery or equipment purchased for rental activities as long-term purchases or as ordinary expenses in your accounts, thus reducing your taxable income.

Any maintenance costs, such as fuel for small machinery or cleaning products for an outdoor hot tub, are also deductible business expenses. Add them to your accounts using the New Expense function in the service.

TIP

OP Light Entrepreneur is well suited for example for renting out outdoor hot tubs. You can purchase long-term assets for your business and rent them out to private or corporate customers.

Examples of rental activities as an OP Light Entrepreneur

You can practise rental activities with the service, such as:

  • Rental of outdoor hot tubs
  • Small machinery rental, such as lawn mowers
  • Trailer rental
  • Music equipment rental, such as DJ equipment
  • Camera equipment rental

Invoicing of rental income

You can send an invoice in the service or receive revenue outside of invoicing, for example, in cash or with a payment terminal that you have purchased. Revenue received in addition to invoicing through the service must be settled to the bookkeeping, i.e. circulated through our service's customer asset account.

Machinery and equipment and their operating and maintenance costs are deductible

Equipment intended for rental to customers is generally deductible as a business expense. You can include more expensive purchases as long-term fixed assets in your accounts, or directly include less expensive purchases as ordinary expenses in the service.

The deductions added to accounting reduce your taxable income; you only pay taxes on the profits your business makes.

Purchase of machinery and equipment with financing

The cost of a loan or other credit to finance your business is not yet deductible in the service due to accounting limitations. However, you can take out a loan or use your own credit to finance your business at your own expense.

Limitations of the service for rental activities

  • The service does not allow you to rent out real estate, such as holiday cottages.
  • Car, van or boat rental is not currently possible.
  • Rental activities can currently only be carried out domestically, for Finnish customers and companies.