Ennakkoperintärekisteriote

Ennakkoperintärekisteriote is a Finnish term referring to a registration certificate or extract from the prepayment register. This register is maintained by the Finnish Tax Administration (Verohallinto) and contains information about businesses and individuals who have registered for prepayment of taxes.

In Finland, businesses and self-employed individuals are often required to pay value-added tax (VAT) and income tax in installments throughout the year, rather than as a single lump sum. This system is known as prepayment. When a business or individual is registered in the prepayment register, it signifies that they are fulfilling their tax obligations proactively.

An ennakkoperintärekisteriote serves as proof of this registration. It is a document that can be requested by other businesses or individuals who are about to engage in a business transaction with the registered entity. For the party requesting the extract, it serves as an assurance that the other party is compliant with their tax responsibilities. This is particularly important for avoiding liability for the other party's unpaid taxes, especially concerning VAT.

If a business pays for services or goods to a supplier who is not registered in the prepayment register, the paying business may be liable to pay the VAT on that transaction to the tax authorities themselves. Therefore, obtaining an ennakkoperintärekisteriote is a crucial step in due diligence for many Finnish businesses to ensure they are dealing with tax-compliant partners and to mitigate their own tax risks. The extract can typically be obtained from the Finnish Tax Administration's online services or upon request.