What is an e-invoice? Finnish e-invoice definition and rules 2026

Verkkolasku is a Finnish machine-readable e-invoice: an invoice that is prepared, transmitted and received in a structured electronic form so that it can be processed automatically by software. This is exactly what it says in the Finnish Act on Electronic Invoicing by Contracting Entities and Undertakings (241/2019), which entered into force on 1.4.2019 and implementing the EU Billing Directive 2014/55/EU. In addition, the invoice must comply with the European standard EN 16931. The practical difference is simple: a PDF invoice attached to an email is not an e-invoice, because someone still has to manually type its data into the system. An e-invoice moves from one billing software to another via the operator's network and ends up among the purchase invoices without manual intervention.

PDF invoice, e-invoice and online invoice are not the same thing

These three words are most often confused when communicating with Finnish customers.

A PDF invoice is an image of an invoice. A person reads it and enters the numbers. Formally, it is an electronic document, but it is not in a structured format and therefore does not fall under the definition of an e-invoice given in Law 241/2019.

In Finnish parlance, an e-invoice primarily means an invoice sent to a private individual or consumer that arrives in their online bank. A verkkolasku, on the other hand, is one that you send to another company or the public sector.

An online invoice is a machine-readable message – a data file where each detail has its own place: seller, buyer, invoice number, payment term, VAT, amount. That is why the buyer's program can enter it into the accounting system itself.

A concrete example: You send a 1,200 euro invoice to a Finnish customer. As a PDF, it goes into someone's mailbox and waits until they have time to enter it. As a Verkkolasku, it arrives in their invoice queue in a few minutes, without anyone printing anything.

Is online banking mandatory in Finland?

The answer is more specific than a simple „yes“ or „no.“.

There is no general rule that every invoice between Finnish companies should always be sent as an electronic invoice. Act 241/2019 does two things. First, it obliges the public sector to accept such invoices – central government agencies and joint procurement entities from 1.4.2019, and other procurement entities from 1.4.2020. Second, it provides from 1.4.2020 the right to claim an invoice from another procurement entity or entrepreneur in the form of an e-invoice defined in this act.

For example: Your Finnish client may request an electronic invoice. If they do, PDF is no longer suitable.

The law defines an entrepreneur (elinkeinonharjoittaja) as a business or professional activity whose annual turnover exceeds 10,000 euros. This limit determines who is entitled to this right of claim – it is not a general threshold for the obligation to use electronic payments.

When dealing with the public sector, the matter is clear. The state takes only accepts e-invoices that meet European standards and the invoice must contain the mandatory data fields of both the tax authority's settlement requirements and the public administration guidelines. If any mandatory field is empty, it is not a proper invoice.

This is how you send your first online invoice to a Finnish customer

Four steps, no more.

• Ask the customer for the address: You need an e-wallet address (verkkolaskuosoite) and its operator or intermediary ID (välittäjätunnus). Both go together.
• Sign a contract with the operator: An e-invoice operator is a service provider who allows you to send and receive invoices electronically. Without an operator, the bill will not reach the network.
• Check the details: invoice number, date, reference number, payment term, VAT distribution, IBAN code and identification of both parties.
• Send and view confirmation: The operator will show whether the invoice was delivered or was delayed.

What does the OVT symbol mean?

OVT stands for Organisaatioiden Välinen Tiedonsiirto, or data transfer between organizations, and this identifier is used to direct the invoice to the correct recipient. The identifier starts with the Finnish tax authority code 0037, then comes the y-tunnus without a hyphen (8 characters) and optionally up to 5 characters of qualification, so total length is between 12 and 17 characters – for example 003723327487.

The operator identifier is part of the same address and indicates which operator the customer's invoices are sent through. An up-to-date list of operator and bank intermediary identifiers is maintained by Tieke, and recipients' OVT identifiers can be searched for in the public e-payment address register.

Finvoice, EN 16931 and Peppol – what to choose?

It is worth keeping two things separate here. EN 16931 sets the bill information content i.e. what data must be on the invoice; the standard SFS-EN 16931-1:2017 is available free of charge from the SFS website. Finvoice 3.0 and TEAPPSXML 3.0 are the invoice descriptions used in Finland and the latest versions comply with this European standard. Finvoice is an XML-based message.

In practice, you don't choose the format - the operator or your billing software does. It's up to you to make sure the invoice meets the European standard.

With international customers, it is worth asking about Peppol. Peppol is a pan-European e-invoice network and with it By joining, you can receive invoices from all companies., who can send through this network. If the customer is located outside Finland, ask their operator directly whether invoices from their country are accepted.

What will change by 2030?

The EU's ViDA package (VAT in the Digital Age) was adopted adopted on 11.3.2025 and entered into force on 14.4.2025; the legislation was published in the Official Journal of the EU on 25.3.2025 and the basic act is Council Directive (EU) 2025/516. From the entry into force, Member States may introduce mandatory e-invoicing under certain conditions.

There are two dates to remember. The e-invoice-based digital reporting requirements will apply to cross-border EU B2B transactions on 1.7.2030. And 1.1.2035 is the deadline by which Member States with their own domestic real-time transaction-based reporting must align it with the EU model.

However, this is often misinterpreted. 1.7.2030 does not automatically make B2B online payments mandatory within Finland – it concerns cross-border transactions. The content of Finland's domestic obligation or its entry into force date is not fixed in law; the topic is still in the preparatory stage and the obligation for small businesses and transition periods are still being considered.

That's why it's a good idea to have your address and operator in place before anyone asks for it. Start with something simple: ask your three largest Finnish customers for their e-invoice address and intermediary ID. If they send it, it means they're ready to accept your invoices as machine-readable - and your next invoice will be less manual.

Read also: English

Last checked: September 14, 2026

FAQ

What is the difference between a PDF invoice and an online invoice?

A PDF invoice is a digital document image that a person must manually read and print for accounting purposes. A Verkkolasku is a machine-readable XML data file that complies with the European standard EN 16931 and moves automatically between billing software via the operator's network. For the purposes of Finnish Act 241/2019, a regular PDF is not classified as an e-invoice.

Is online payment mandatory between companies in Finland?

There is no general automatic obligation for all companies, but Law 241/2019 gives the buyer the legal right to request an e-invoice. If the transaction partner's annual turnover exceeds 10,000 euros or it is a public sector and requires a standard e-invoice, the seller may no longer limit himself to a PDF.

What is an OVT token and how is it formed?

The OVT code represents data transfer between organizations and acts as an e-payment address. The code begins with the Finnish tax authority prefix 0037, followed by the company's 8-digit y-code without a hyphen and, if necessary, up to a five-digit department specification. The total length of the code ranges from 12 to 17 characters.