Discussion on practices and interpretations
Apart from issues related to contracting, the content of the text below (29.4.2014) does not fit in to my core competence. I decided to put this online mostly because I am not sure if the information written below is entirely consistent with the information that I have received from certain other sources not referred to in the text. The following text concerns mostly Finnish legislation. The parties of an agreement are liable for the responsibilities defined in the agreement. In trade agreements, the contractors commonly include a buyer and a seller. Contracts can be multilateral and include more than two contractors. The contract may also define rights of third parties, quite often one can find mentions concerning e.g. agents and beneficiaries. The rights and responsibilities defined in the agreement are further specified or altered through e.g. related legislation and the eligibility of persons undersigning the agreement. Consumer protection act is an example of legislation that provides rules for contracting with consumer. The rights and responsibilities created by an agreement that is made in the name of a company belong to that particular company. An employee is someone who is hired to work for a company or in some cases for a natural person. A person who works purely as an employee for a particular employer does not have personal responsibility for employer's commitments other than defined in legislation including e.g. the Act regarding Damages and Tort Liability or Employment Contracts Act. (Työsopimuslaki, Vahingonkorvauslaki) The company form is an important factor determining the responsibility that an owner of a company has for company's commitments. One can also find operational forms for which it is not that simple to infer whether related commitments will be treated as services sales or employment relationships. Examples of last-mentioned forms may comprise the commitments of practitioners and freelancers. The form of operation in these cases is usually defined by the nature of the assignment and related arrangements. One essential characteristic of an employee is that an employee works under the supervision of an employer. Other associated characteristics can be found in related legislation. However, the actual definition of an entrepreneur is also dependent on the legal context, i.e. the related definitions seem to be slightly different if we consider e.g. pensions, unemployment, or taxation. (Yrittäjän eläkelaki, Työttömyysturvalaki, Arvonlisäverolaki) Payroll tax must be paid for the sales of services. If the party who receives the payment is not registered as VAT liable, the one who pays for the output can also pay the payroll tax. The seller must give an invoice to the buyer if value-added tax is paid for the sales of service or product. The invoice given by the buyer will be accepted as given the seller, if self-invoicing was agreed upon and an arrangement exists according to which the seller accepts the invoice. Value-added tax act provides a list of sales that require invoice with contents defined in value-added tax act, even if no value-added tax is paid for the sales. For other domestic sales no such invoice is required. (Arvonlisäverolaki, http://www.vero.fi) 29. huhtikuuta 2014, 23:33 Johanna Sandman
© Johanna Sandman 2013-2023
Discussion on practices and interpretations
Apart from issues related to contracting, the content of the text below (29.4.2014) does not fit in to my core competence. I decided to put this online mostly because I am not sure if the information written below is entirely consistent with the information that I have received from certain other sources not referred to in the text. The following text concerns mostly Finnish legislation. The parties of an agreement are liable for the responsibilities defined in the agreement. In trade agreements, the contractors commonly include a buyer and a seller. Contracts can be multilateral and include more than two contractors. The contract may also define rights of third parties, quite often one can find mentions concerning e.g. agents and beneficiaries. The rights and responsibilities defined in the agreement are further specified or altered through e.g. related legislation and the eligibility of persons undersigning the agreement. Consumer protection act is an example of legislation that provides rules for contracting with consumer. The rights and responsibilities created by an agreement that is made in the name of a company belong to that particular company. An employee is someone who is hired to work for a company or in some cases for a natural person. A person who works purely as an employee for a particular employer does not have personal responsibility for employer's commitments other than defined in legislation including e.g. the Act regarding Damages and Tort Liability or Employment Contracts Act. (Työsopimuslaki, Vahingonkorvauslaki) The company form is an important factor determining the responsibility that an owner of a company has for company's commitments. One can also find operational forms for which it is not that simple to infer whether related commitments will be treated as services sales or employment relationships. Examples of last-mentioned forms may comprise the commitments of practitioners and freelancers. The form of operation in these cases is usually defined by the nature of the assignment and related arrangements. One essential characteristic of an employee is that an employee works under the supervision of an employer. Other associated characteristics can be found in related legislation. However, the actual definition of an entrepreneur is also dependent on the legal context, i.e. the related definitions seem to be slightly different if we consider e.g. pensions, unemployment, or taxation. (Yrittäjän eläkelaki, Työttömyysturvalaki, Arvonlisäverolaki) Payroll tax must be paid for the sales of services. If the party who receives the payment is not registered as VAT liable, the one who pays for the output can also pay the payroll tax. The seller must give an invoice to the buyer if value-added tax is paid for the sales of service or product. The invoice given by the buyer will be accepted as given the seller, if self-invoicing was agreed upon and an arrangement exists according to which the seller accepts the invoice. Value-added tax act provides a list of sales that require invoice with contents defined in value-added tax act, even if no value-added tax is paid for the sales. For other domestic sales no such invoice is required. (Arvonlisäverolaki, http://www.vero.fi) 29. huhtikuuta 2014, 23:33 Johanna Sandman
