ALVlaskentaa

ALVlaskentaa is a term that refers to the calculation of the value-added tax (VAT) or its equivalent in Finnish taxation. This process is fundamental for businesses operating in Finland that are registered for VAT. It involves determining the amount of VAT that must be collected from customers on taxable sales and the amount of VAT that can be reclaimed from suppliers on eligible purchases.

The core of ALVlaskentaa is the distinction between input VAT (ostovähennyskelpoinen ALV) and output VAT (myyntivähennyskelpoinen ALV). Output VAT is the tax charged on goods and services sold by a business. Input VAT is the tax paid by a business on its purchases of goods and services that are used for its taxable economic activities. Businesses are generally entitled to deduct their input VAT from their output VAT.

The net VAT payable to the Finnish Tax Administration (Verohallinto) is the difference between the total output VAT and the total deductible input VAT. If input VAT exceeds output VAT, the business may be eligible for a VAT refund. ALVlaskentaa requires careful record-keeping of all sales and purchases, along with the applicable VAT rates, which can vary depending on the type of good or service. Regular VAT returns are filed with the tax authorities, typically monthly, quarterly, or annually, depending on the business's turnover. This calculation ensures compliance with Finnish tax laws and contributes to the government's revenue.