Arvonlisäverovelvollisuuteen

Arvonlisäverovelvollisuus, often abbreviated as ALV-velvollisuus, refers to the obligation to register for and charge value-added tax (VAT) on goods and services provided within a specific jurisdiction. This obligation typically arises when a business's taxable turnover, the total value of goods and services sold that are subject to VAT, exceeds a certain threshold set by the national tax authority. Businesses that meet or are expected to meet this threshold must register with the tax authorities and obtain a VAT identification number.

Once registered, a VAT-liable entity is required to add VAT to the price of its taxable sales and collect this tax from its customers. This collected VAT is then remitted to the tax authorities, usually on a periodic basis, such as monthly or quarterly. However, VAT-liable businesses can also deduct the VAT they have paid on their own business-related purchases, known as input VAT. The difference between the output VAT (collected from customers) and the input VAT (paid to suppliers) is the amount that must be paid to the tax authorities.

The specific rules regarding VAT registration thresholds, VAT rates, reporting requirements, and exemptions vary significantly between countries. Businesses operating internationally must be aware of the VAT regulations in each country where they conduct business. Failure to comply with VAT obligations can result in penalties, interest charges, and other legal consequences.