Business · invoice to net 2026
Invoice to net in Finland 2026 — light entrepreneur and sole trader
When you invoice as a light entrepreneur (kevytyrittäjä) or sole trader (toiminimi), what lands in your pocket is clearly less than the invoice amount. First VAT comes off the invoice (if you are registered), then for a light entrepreneur the invoicing-service commission or for a sole trader the business expenses, then the YEL contribution, and finally income tax.
The calculator shows the whole chain and the final net income per year and per month. Note: the VAT-registration threshold is €20,000/calendar year (it rose from €15,000 to €20,000 in 2025), and the small-business VAT relief was abolished. Choose a mode (light entrepreneur or sole trader) below.
The amount you invoice the client per year (incl. VAT if you are registered).
Light-entrepreneur invoicing services typically charge 4–5%.
Leave empty or 0 to use the business profit. Floor €9,423.09.
You keep
€1,849€/month
€22,188 €/year · All deductions from the invoice: 44.5 %
| Invoicing | €40,000 |
| – VAT (ALV) | €8,127 |
| Excluding VAT | €31,873 |
| – Invoicing-service fee | €1,594 |
| Business profit | €30,279 |
| – YEL contribution | €7,388 |
| Taxable income | €22,891 |
| – Income tax (estimate) | €703 |
| = Net | €22,188 |
The income tax is an indicative estimate: it is based on the national-average municipal tax rate, and a self-employed person’s deductions are not exactly the same as an employee’s. YEL is calculated with the same engine as our YEL calculator. The VAT-registration threshold is €20,000/calendar year and the small-business VAT relief was abolished on 1.1.2025. The calculator is for budgeting support.
How much of an invoice do you keep as an entrepreneur in 2026?
Far from all of the invoice amount lands in your pocket. First VAT comes off if you are registered: for example, from a €40,000 invoice at 25.5% VAT about €8,127 is remitted to the state, leaving €31,873. For a light entrepreneur the invoicing service takes a fee, typically 4–5%, and for a sole trader the business expenses are deducted. The YEL contribution (24.40%, 19.03% for a new entrepreneur) and income tax are paid from the remaining profit. YEL and tax are mutually deductible. In practice a light entrepreneur keeps roughly 45–55% of the invoice amount depending on VAT, the fee and the income level. The VAT-registration threshold is €20,000 per calendar year: below it a small entrepreneur does not need to charge VAT at all.
An invoice’s journey to net income
The chain works like this: VAT is first separated from the invoice total if you are VAT-registered. The standard VAT rate is 25.5%, with reduced rates of 14% (e.g. food) and 10% (e.g. passenger transport). VAT is not your income but money remitted to the state — what remains is VAT-free sales income. From that, a light entrepreneur’s invoicing-service commission (typically a few percent) or a sole trader’s business expenses are deducted.
Next comes the YEL contribution (24.40% of work income, 19.03% for a new entrepreneur) and finally income tax. A sole trader’s income is taxed through the capital/earned-income split; a light entrepreneur’s income is effectively wages. After these items, the net income is often 45–60% of the original invoice, depending on the VAT situation, expenses and tax rate.
Frequently asked questions
How much do you keep from a €1,000 invoice?
It depends on the VAT situation, expenses and tax rate. After remitting VAT (25.5%), the commission or expenses, YEL and income tax, you typically keep about €450–600. The calculator gives the exact figure for your own numbers.
When must I register for VAT?
When your turnover exceeds €20,000 in a calendar year. Activity below the threshold can be VAT-free, but then you also cannot deduct VAT on purchases. The lower-limit relief was abolished in 2025.
What is the net difference between a light entrepreneur and a sole trader?
A light entrepreneur pays the invoicing service a commission (often a few percent) but needs no bookkeeping of their own. A sole trader has no commission but can deduct business expenses and handles bookkeeping themselves or via an accountant.
Does a light entrepreneur pay YEL?
Yes, on the same terms as other entrepreneurs: once the activity lasts over 4 months and work income exceeds €9,423.09. Many invoicing services do not arrange YEL for you, so it is worth taking it yourself.
Is VAT my income?
No. The VAT you collect is remitted to the state, so it does not stay with you. For net income only the VAT-free sales income matters, from which expenses, YEL and income tax are deducted.