Arvonlisäveroton

Arvonlisäveroton refers to a price or transaction that does not include value-added tax (VAT). Value-added tax is a consumption tax levied on goods and services at each stage of production and distribution. When a price is stated as arvonlisäveroton, it means that the stated amount is the base price before VAT is added. The final price paid by the consumer will be this base price plus the applicable VAT rate.

In many business-to-business (B2B) transactions, prices are often quoted as arvonlisäveroton. This is because businesses can typically reclaim the VAT they pay on their purchases, so they are primarily concerned with the net cost before tax. When a business sells to another business, they will also usually quote an arvonlisäveroton price, and the VAT will be added separately on the invoice.

For consumers, prices are usually displayed inclusive of VAT, which is often referred to as "sis. alv." in Finnish. This means the price shown is the final amount the consumer will pay. However, if a price is explicitly marked as arvonlisäveroton, it indicates that VAT will be calculated and added to this amount at the point of sale or on the invoice. Understanding the distinction between arvonlisäveroton and VAT-inclusive pricing is crucial for accurate financial calculations and budgeting, especially in business contexts.