Testing and Initial Sales of a New Idea

✅ Selling as a Private Individual

  • In Finland, you can sell items that have been in your personal use tax-free up to 5,000 € per year, as long as it is not considered a business activity.
  • This applies to sales at flea markets, Tori.fi, or Facebook Marketplace.
  • If you sell new products or handmade crafts, it is considered a business activity and requires tax considerations.

📣 Marketing Options for Private Individuals

  • Social Media: Facebook Marketplace, Instagram, TikTok, and local groups are effective and free channels.
  • Business Cards and Flyers: You can distribute them at events or leave them at local businesses.
  • Networking: Word-of-mouth marketing works especially well for local sales.
  • Product Description and Price: A clear picture and fair price increase trust.
  • Email Lists or WhatsApp Groups: For small-scale customer communication.

💳 Payment Methods During Testing Phase

  • MobilePay and cash are easy and widely accepted.
  • Bank transfer works with trusted customers.
  • It is advisable to provide a receipt, even if not mandatory – it increases trust.
  • Payment services like SumUp or Zettle enable card payments but often require a business ID.

🛠 Cooperative as a Business Model

  • A cooperative is a good option if you want to test a business idea without having your own company.
  • You can invoice through the cooperative and receive salary or work compensation.
  • The cooperative handles taxation and insurance and acts as an employer.
  • Suitable especially for selling services, crafts, or organizing events.

📝 What Information Should Be Included in a Receipt Written by a Private Individual?
To be valid for accounting purposes, the receipt should include the following information:

  1. Date – when the payment occurred.
  2. Seller’s information – name, address, and contact details if necessary.
  3. Buyer’s information – company name and business ID (if known).
  4. Payment amount – clearly stated, e.g., ”500 €”.
  5. Reason for payment – what was sold or what service was provided.
  6. Signatures – signatures of both parties confirm the transaction.
  7. Possible unique identifier – e.g., receipt number or reference.

📄 Reference to VAT Exemption in the Receipt
If the private individual is not liable for VAT (i.e., does not have a business ID and is not registered in the VAT register), the receipt can include the following note:

”The sale does not include VAT. The seller is not liable for VAT (VAT Act 1 §).”