E-invoicing is well-known and widely used in Finland, with high adoption also in the B2B sector. Even on the consumer side (B2C), solutions for e-invoicing are common. On the public sector (B2G) side, e-invoicing has been mandatory since 2020.
The core driver for e-invoicing in Finland remains its inherent business benefits:
Improved data quality & automation: E-invoices (XMLs) provide structured data, enabling significantly more automation in processing compared to PDFs or paper.
Enhanced security: Secure networks reduce risks like lost invoices and payment delays.
Time & cost savings: Automating processes translates directly to operational efficiencies and cost reductions.
Environmental benefits: A reduced carbon footprint compared to traditional paper-based invoicing.
Furthermore, Finnish legislation (E-invoicing Act 241/2019) allows certain buyers to demand EN 16931 compliant e-invoices from their suppliers. Specifically, if a buyer's turnover exceeds €10,000, they have the right to request such an e-invoice. While this legal right exists, it is not yet widely exercised in practice, but it provides a tool for companies to ensure the quality of incoming invoices.
In Finland, two main national formats have historically dominated the market: Finvoice and TEAPPSXML
Both Finvoice 3.0 and TEAPPSXML 3.0 are compliant with the European standard EN 16931, ensuring their interoperability with broader European requirements. These national formats gained prominence largely due to Finland's strong, long-standing operator network, which has facilitated e-invoice exchange for years.
However, a characteristic of these national formats is that their validation might not be as strict as, for example, Peppol formats, which can sometimes impact data quality.
Peppol is definitely present and gaining ground in Finland.
Finland has its own Peppol Authority (Finnish State Treasury - Valtiokonttori), signifying official commitment.
The public sector has further adopted Peppol since April 2024, with the State Treasury specifically announcing that invoices sent to the Central Government must use Peppol Advanced Ordering. This is part of a broader plan to encourage the adoption of the Peppol framework and drive e-ordering.
The Finnish e-invoicing landscape is constantly evolving. For software companies operating in or looking to expand into the Finnish market, here are your critical takeaways:
Comprehensive format support is essential: You must support the two dominant national formats: Finvoice and TEAPPSXML. Additionally, robust Peppol BIS 3.0 capabilities are increasingly important for B2G and cross-border transactions, and likely for future B2B growth.
High B2C potential: Finland has strong B2C e-invoicing adoption. Explore how your solutions can facilitate automation and efficiency for consumer-facing businesses.
Anticipate Peppol's growth: While the pace might be debated, the influence of ViDA, cross-border trade needs, and public sector adoption of Peppol (e.g., for e-ordering) strongly suggest Peppol will become even more prominent in Finland's future e-invoicing landscape. Stay ready for that shift.