Arvonlisä

Arvonlisää, or value added, is the net contribution of production to the economy. It represents the value of output minus the value of inputs (intermediate consumption) used to produce that output. At the level of a single business, value added can be seen as revenue from sales minus purchases of goods and services from other firms, reflecting the economic value created by the firm’s activities.

In national accounts, value added is further broken down into components that describe how the value is generated: compensation of employees, gross operating surplus (profits), and gross mixed income. The sum of value added across all producers in an economy equals its gross domestic product (GDP) through the value-added approach. This perspective highlights how different sectors contribute to overall economic activity and productivity, independent of changes in market prices for goods and services.

The term arvonlisää is closely linked to the common phrase arvonlisävero, or value-added tax (VAT). VAT is a tax applied to most goods and services at various stages of production and distribution. Businesses collect VAT on behalf of the state and remit it, with the final cost generally borne by the end consumer.

In Finland and the European Union, value-added data are routinely published in national accounts and regional statistics. These data are used for policy analysis, international comparisons, and monitoring economic structure and growth over time.