Basic-service

Basic-service suits for everyone and almost for all sectors, also for groups.

BASIC is suitable when you do not have your own company

In Basic-service you invoice under 4works-invoicing service business ID (VAT) and there will be added VAT of your own branch  0 – 24% VAT.

E.g Construction work invoices as inverse VAT 0%. Health and care sector and performing artists as well invoices 0% VAT. 

Group Invoicing.  Explore GROUP-service

Sales tax VAT – what it is and how it works and how it affects your work pricing?

-VAT is a consumption tax and it will be added to the works price, service price or product price by seller (VAT 0-24%).
-VAT depends on the branch were the seller is working: 0%, 10% or 24%.
-VAT is determined by seller’s branch. VAT is always paid by buyer, who buys work, product or service even if the buyer is private person or a company.
Seller is acting as a collector for the tax authorities and settles the tax ful-ly to tax office.
-VAT is named as a consumption tax, because consumpter pays the full VAT amount and cannot reduce it in own tax description.
– Company, regtereed to VAT registration can reduce the VAT in its own tax settlement and gets that way the paid tax back.

Example 1 – you are invoicing private persons using the invoicing service.

You make an invoice in the invoicing service of your work with a total amount €1000 + 24%VAT agreed with your client. Private person receives an invoice total 1240€ including 240€ VAT.
When your client pays the invoice, the invoicing service will settle VAT 240€ to the tax office and the sum without tax is the base for your salary.
For a private person the cost of your work is 1240€, because he cannot reduce the tax in his tax declaration.

Example 2 – you are invoicing company using the invoicing service.

You make an invoice in the invoicing service of your work with a total amount €1000 + 24%VAT agreed with your client. the company receives an invoice total 1240€ including 240€ VAT.
When your client pays the invoice, the invoicing service will settle VAT 240€ to the tax office and the sum without tax is the base for your salary.
When your client pays the invoice, the invoicing service will settle VAT 240€ to the tax office and the sum without tax is the base for your salary.
The company makes its own tax declaration and declares 240€ as a paid tax (VAT) and tax office will return the paid tax back to the company.
For a company the cost of your work 1000€ because tax office returns the paid tax to the company.

How VAT affects to your salary?

VAT is not a part of your salary. VAT 24% is a tax and belongs totally to the tax office and when invoicing through an invoicing service, the invoi-cing service is obliged to settle the paid tax to the tax office.
Please note, when pricing your work to inform and agree with your client if the price is including VAT24% or not and inform the client which tax ra-te is in your invoice (0%, 10% or 24%).

4works invoicing service is super economical!

Service fee is only 2,0 -3,6%

In addition to the service fee, 4works does not charge anything vague about your salary additional charges or mandatory premiums, which is in competition billing services common practice.

– Sending invoices as e-invoices and by e-mail
– Track / verify invoice shipments
– Monitoring of payments
– Automatic payment reminders
– Payroll
– Processing of travel and subsistence allowances
– Withholding tax 
– Withholding tax settlement for the tax collector
– Withholding of health insurance premium (when the YEL limit is exceeded)
– Settlement of the health insurance premium to the tax collector
– Salary declaration to the Income Register
– Payroll for you
– VAT returns and settlements to the tax collector
– Liability and accident insurance
– Customer service and advice
– Advice and assistance in recovery
– Real-time chat service
– Free Marketplace (Tekijat.4works.fi)

Joining the 4works invoicing service and sending invoices is free. By joining the service, you do not commit to anything and you can stop using the service at any time.

4works service fee is charged only in connection with the payment of salary, the tax-free amount of the invoice. The salary will be paid as soon as the billed customer’s payment appears in the billing service account and is assigned to your invoice.

Salaries are always paid in the morning and the money is in your account normally on the same day.

When starting the invoicing the service fee is 3,6% from the tax-free price of the invoice. Service decreases progressively in other words more you invoice the less you pay service fee.

Invoicing accumulation/service fee %:

Less than 50 000 € / 3,6%, 50.001-100.000 € / 3,2 %, 100.001-150.000 € / 2,8 %, 150.001-200.000 € / 2,4 % and over 200.000 € / 2,0 %.
Billing accumulation is increasing all the time and will never be zeroed.

COMPARE actual costs between different invoicing services, it is worth money

The comparison uses mandatory charges for the salary of 4works and other invoicing services, such as: service fee,
additional charge or compulsory insurance premium.

In the comparison, an average one-time invoicing of € 2,700 (VAT 0%) has been used as an example.

4works payroll

The invoiced amount is € 2,700
– 3.6% service fee € 97.20
Compulsory costs collected from salary total € 97.20

Most other invoicing services (average charges)
The invoiced amount is € 2,700
– 5% service fee € 135
– 2.5% additional charge € 72.90
Compulsory costs collected from salary total € 202,50 

Create the user id.  – You’ll get 50€ bonus as a new beginner and accident insurance free of charge from 15th of May of 2024.

After the registration you get the user Id in your email. When registrating I will accept all the terms of privacy policy and personal data register. 

Easy and quick way to invoice your work!

Invoicing work or own products is an easy, quick and super inexpencive way.

How to use Bacic-service shortly.
1. To log in to the system create your username and you’ll get your password by email and you are ready to log in the system.
2. Fill in your personal data on page My information.
3. Fill in your customer data on page My customers.
4. Choose Basic-servise if you are sure that this service is suitable for you.
5. Create an invoice for your customer of the agreed and done work.
When making the invoice attach all work-related costs and kilometre allowances into the expense allowances section.
6. When your customer has paid the invoice and the system has found the payment in the bank, we pay your salary, all payments take place every weekday.
7. We charge only 4works service fee and your withholding tax percentage from your salary. If your earned income exceeds the statutory YEL insurance limit 9010,28€  this year (2024) you should be covered by YEL insurance and from your salary will be charged also the statutory health insurance contribution 1,16% (2024).

4works takes care of burocracy of withholding taxes and reports accounting to the tax authorities and Incomes register (Tulorekisteri)

Household tax deduction:

Tax authorities can give household deduction to private households when they buy work from you.
According to the tax authorities instructions the household deduction can be given from work e.g.
– cleaning
– cooking
– laundry and ironing
– gardening and yard care
– snow removal
– care and nursing
– any kind of assistance

Nursing and caregiving include nursing and caring for children, elderly people and disabled people (washing, dressing, feeding and other care-giving). Paying for these types of work entitle you to the credit for household expenses.
You cannot get the credit for household expenses for nursing and care-giving that are provided by health care services and are not subject to VAT.
Maintenance and modernisation (painting of the interior, wallpaper hanging, repairing or changing the floor coating, renovating the bathroom or sauna, installation of kitchen cupboards, installation of a central vacuum cleaning system)
Renovation of an empty apartment (also if an estate pays for the renovation), when the apartment is not to be taken for own use after the renovation and also renovation of holiday house or cottage.
Deduction is not allowed from work such as new construction of an apartment or building.

Read more:

Work types frequently raising questions about entitlement to the tax credit for household expenses – vero.fi