ALVvelvollinen

ALVvelvollinen is a Finnish term that translates to "VAT liable" or "VAT registered" in English. It refers to a person or entity that is required to register for and collect Value Added Tax (VAT) on their taxable goods and services. In Finland, businesses exceeding a certain annual turnover threshold are legally obligated to become ALVvelvollinen.

The VAT registration threshold in Finland can change, so it's essential for businesses to stay updated on current regulations. Once registered, a business must charge VAT on its sales, file VAT returns with the Finnish Tax Administration (Verohallinto), and remit the collected VAT. This collected VAT is typically the difference between the VAT charged to customers and the VAT paid on business expenses (deductible VAT).

Being ALVvelvollinen has implications for pricing, accounting, and administrative processes. It ensures that VAT is collected and accounted for correctly within the Finnish tax system. Failure to comply with VAT obligations can result in penalties and interest. Businesses that are not yet ALVvelvollinen may choose to register voluntarily, often to be able to deduct VAT incurred on their purchases.