Service description – OP Light Entrepreneurship Without Business ID

General description of the service

The Service is an invoicing service platform offered by OP Palvelut Oy (hereinafter ”Service Provider”), which is part of OP Pohjola. The Service offers the User a new alternative for operating as a company without a business ID. Invoices are sent under the Service Provider's business ID. The Service provides an invoicing and wages calculation service to the User and ensures that the User's withholding tax and value added tax are settled with the Tax Administration, and that the reports related to them are prepared. No employment contract (as referred to in the Employment Contracts Act) exists between the Service Provider and the User, and no collective agreements apply to the agreement. Work performed through the Service must be based on assignments.

The Service provides the User with the possibility to create and send invoices to companies and private persons. The User sends invoices by using the system created by the Service Provider. Invoices can be sent via email, in paper copies or as e-invoices. The invoicing currency is euros.

After receiving payment, a salary will be paid to the User in accordance with their tax card to the account number provided by the User. The User's withholding tax rate is obtained from the Tax Administration. The service fee, withholding tax and any health insurance contribution are deducted from the VAT-free amount of the invoice submitted if the User is liable for YEL pension insurance. The remaining amount is the User's salary.

When the User's business activities exceed the limit for YEL, the Service gives the option to purchase YEL insurance from the Service Provider's partner. When the limit for YEL is reached in invoicing performed through the Service, the Service Provider deducts withholding tax and a service fee, as well as a health insurance contribution, from the User's future invoicing, and settles it with the Tax Administration. The User is responsible for purchasing YEL insurance. The User can deduct paid YEL invoices from their own taxation as standard deduction for work-related expenses.

The User shall agree on the work to be performed and the compensation for it with each end customer. It is advisable to prepare an assignment agreement for each work performance, listing the terms and conditions for the assignment. The Service Provider offers a template in the Service for creating an assignment agreement. The User is responsible for recording the assignment's content and key terms and conditions in the assignment agreement as agreed. The Service Provider is not a party to this agreement.

Registration for the Service is free of charge. The Service does not generate fixed monthly payments. Instead, the price is based on sent invoices. It is a good idea to take this into account when pricing an assignment. The Service Provider will charge a service fee of 5% + 2.5% for the VAT-free amount of the sent invoice. The service fee includes creating the invoice, payment of salary, and the preparation of the required notifications, as well as the Assurance included in the Service. We charge no other expenses. The User can terminate the Service anytime without charges.

The Service includes

Assurance Without Business ID

The Assurance is included in the Service for all registered users. The Assurance is a complete package that consists of four parts:

Group insurance included in the Service is provided by Pohjola Insurance Ltd. The policyholder is OP Palvelut Oy, which has an insurance agreement with Pohjola Insurance Ltd. The User plays the role of the insured in the group insurance policies mentioned above, and no contractual relationship is formed between the User and Pohjola Insurance Ltd. The specified insurance policies are valid when the User is performing an assignment billable through the Service. Otherwise, the insurance policies are not valid.

Process description

Registration

  1. The User identifies themself with strong electronic identification and registers with the Service by accepting the Service's Terms and Conditions
  2. Next, the User must enter basic details
  3. The User must confirm the email address
  4. The User can start invoicing through the Service

Sending invoices and payment of wages and salaries

  1. The User submits an invoice through the Service with a total amount of €125.50 incl. VAT 25.5%
  2. The Service receives a payment of €125.50 on the customer asset account
  3. The Service withholds the share of VAT, €25.50, from the submitted invoice, and settles it with the Tax Administration
  4. The Service withholds a service fee of 5%, €5, from the VAT-free invoice amount of €100
  5. The Service withholds an Assurance fee of 2.5%, €2.50, from the VAT-free invoice amount of €100
  6. The Service deducts withholding tax from the calculated gross salary based on the User's tax rate of 10%, with an amount of €9.25 (€100 - €5 - €2.50 = €92.50)
  7. The Service pays the difference between the invoice and withheld amounts to the bank account provided by the User: €125.50 - €25.50 - €5 - €2.50 - €9.25 = €83.25

Restrictions

The Service does not enable adding expenses to the invoice. This means that only the payment agreed for the work performance can be imported on the invoice, from which the amounts mentioned above are deducted. The User can deduct expenses in their own income taxation in accordance with the Tax Administration's instructions.

For the sake of clarity, please note that the Service does not include the following:

The work performances below cannot be invoiced through the Service. The list is not exhaustive.

Please note that you cannot use the Service if you have your own business ID (excl. business IDs related to agriculture and forestry). Please contact our Customer Service if you plan to invoice the following work.

PAYMENT REMINDERS AND DEBT COLLECTION

The Service provides the opportunity to send payment reminders and collect invoices. Payment reminders and debt collection are only available for undisputed invoices.

If the recipient of the invoice does not pay the original invoice by the due date, a payment reminder invoice can be sent through the Service. The first reminder invoice can be sent 14 days after the invoice has fallen due. 1–3 reminder invoices are normally sent. If the invoice is still not paid after payment reminders, it can be transferred to debt collection.

Debt collection is organised through partner company Lowell. No additional costs to the User are incurred by debt collection. Debt collection can be performed for end customers in both Finland and the EU. Debt recovery activities can be started after the first reminder invoice at the earliest if the User wishes. It should be noted that reminder invoices and debt collection are optional actions for the User, and they will not be performed automatically without the User's participation. The choice to send an individual reminder invoice or start debt collection is made in the Service.