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How to do your VAT registration

When you are buying services from abroad (e.g. Uber which is based in the Netherlands) or providing services to companies in other EU countries, such as Uber, you may need a VAT registration.

If you’re new to VAT, this page walks you through the basics of your registration process. Expect the registration to take 3 to 6 weeks.

Consult a tax advisor for more details on criteria and requirements that apply to you.

What your registration entails

VAT collected from providing services

The VAT you collect from selling your transportation services to Riders is payable to the Tax Authority with your VAT return.

VAT on business expenses

Besides collecting VAT, VAT can also be charged to you by several parties. For example on business expenses such as fuel and car repairs. When you are VAT registered, you may be able to deduct this from your collected VAT.

If the car is used partially for private driving

In order to deduct input VAT, the Finnish Tax Administration requires keeping a driver’s log including in

  • starting and ending times of drives
  • starting and ending places
  • driving routes, if needed
  • odometer information
  • length of the drive
  • purpose of the drive
  • a user of the car.

The driver’s log is the part of the accounting material and must be stored for 6 years after the financial period.

The VAT may not be deducted without the mileage report.

How to get started

Criteria and Requirements

You are liable to register for VAT if your annual turnover exceeds the threshold of EUR 15,000. If your turnover does not exceed this threshold, a VIES-only registration will suffice. More on VIES will follow later.

When the turnover threshold is not met, voluntary registration might also be possible. See this government website for more information.

We strongly recommend you speak with the local tax office and consult a Tax Professional. Here is one suggestion:

The Tax Authority can also provide you with helpful insights at vero.fi.

VIES-only registration

For small businesses

When your annual turnover does not exceed the VAT registration threshold, a VIES-only registration and a notification obligation on purchases and potential sales within EU are required, since you are engaged in cross-border transactions with Uber in the Netherlands.

Under a VIES-only registration you:

  • do not charge VAT on your services;
  • do not reclaim VAT on your purchases;
  • do declare and pay VAT on your purchases of services from abroad
  • do declare the sales you make to other companies in the EU

Your Uber Profile

Uber Profile - VAT

Be sure to provide us with a valid VAT-number (by adding it to your Tax Profile / Invoice Settings page) and to update your tax profile in the Uber App. VAT-number is added in format FI12345678 (if your business ID number is 1234567-8).

Uber Profile - VIES

Be sure to provide us with a valid VAT-number (by adding it to your Tax Profile / Invoice Settings page) and to update your tax profile in the Uber App. Select the “Small Business Regime” option. VAT-number is added in format FI12345678 (if your business ID number is 1234567-8).

FAQ

  • You need to register your business activities at the Finnish Patent and Registration Office’s Trade Register via www.ytj.fi or via www.prh.fi. Instead of registering online, you can also register by submitting paper forms, but this involves higher fees by you.

    The type of registration you choose is up to you, but sole traderships or a limited liability companies are the most common options. We recommend you consult a professional when deciding which registration suits you the best. Here is one suggestion:

    If you are already registered as a sole trader, but were not engaged in selling passenger transportation services before, please remember to inform the Patent and Registration Office and the Tax Authority that you are engaging in a new business activity.

    If you already have a registered limited liability company also remember that you may need to consult a notary to see if a change of statutes is needed.

    Please be aware that registering in the Trade Register does not automatically register you for tax purposes as well! You will need to register for tax purposes separately.

  • Information on acquiring a taxi license can be found here and here. To see the Tax Authority’s guidelines on starting your own taxi company, please see this vero.fi.

  • Typically, these payments fall to be treated as services provided by you to Uber BV. Please confirm the tax treatment with the Tax Administration or with your tax adviser.

  • Yes, Uber generates trip invoices to Riders on your behalf.

  • Your turnover is the sum of the services you sold. On the Uber app this is the sales made to the Riders. However, please be aware that for tax purposes you likely need to include turnover from any other activities you perform outside of the Uber platform too.

    Please be aware that the Tax Authority requires you to maintain a driver’s log, breaking down your incomes and kilometers driven.

    We suggest speaking to the tax office, and your tax accountant to be sure you are calculating your turnover correctly!

  • For more information on this, we refer you to Tax Administration’s website at vero.fi/en.

  • VAT returns are filed at MyTax service online, which requires a Katso ID (until the end of 2019) or banks’ E-identification codes. The frequency of filing returns depends on your annual turnover, and is determined by the Tax Authority.

    EC Sales Lists have to be submitted every month. More information can be found here.

  • Uber BV’s VAT number is: NL 8520 71589 B01.

    • What is it? Your Tax Summary is a document that provides a detailed breakdown of your earnings (gross fares) and potential business expenses. It’s not an official tax document but could help you or your preferred tax professional prepare your tax return.
    • Who gets it? If you drive with Uber, you’ll receive a Tax Summary. Every Uber partner gets one.
    • Where is it? You can access your Tax Summaries by logging in to partners.uber.com and clicking on Tax Summary.
    • When is it available? Your Tax Summary is issued monthly.

    The VAT you have charged appears on the Tax Summary (and on the invoices to your customers), but only if you have updated your Tax Profile / Invoice Settings page with your VAT registration details.

    Here is an explanation of some common terms:

    • Gross Uber Rides Fare: this is the full fare that you have charged and invoiced to riders and includes VAT (if any) that you have charged.
    • VAT on Transportation: this is the portion of the fare that you have charged which is VAT. The fare is inclusive of VAT (at 10% in Finland). For example, if the Gross Uber Rides Fare is EUR 11 then
      • The NET amount of the fare excluding VAT is EUR 10
      • The VAT amount EUR 1 (and will be shown accordingly on your summary)
    • Uber Rides Service Fee: this is the fee charged by Uber to you. It is taken from the Gross Uber Rides Fare.
  • According to Finnish tax regulations

    • Income tax: tips are considered income and should be included in your tax return and taxed accordingly. Please remember also to give a receipt on tips.
    • VAT: voluntary tips are not subjected to VAT and are not to be included in the VAT reporting.

    All trips on the Uber app are recorded electronically and, as part of the requirement for intermediaries, all payment information is shared with the Finnish tax authorities on an annual basis.

  • Please see this briefing note.