arvonlisätyn

Arvonlisätys is a system of value added taxation applied to the European Union's customs territory. The system was implemented as part of the EU's customs union, which aims to eliminate trade barriers and create a single market among member states.

The value added tax (VAT) rate in the EU ranges from 0% to 27%, depending on the specific goods or services being imported. Arvonlisätys calculates the tax amount based on the value added at each stage of production or distribution. This means that the amount of VAT charged to the consumer includes the tax paid by the manufacturer, the wholesaler, and the retailer, in addition to the initial tax on raw materials or components.

The arvonlisätys system is designed to be comprehensive, covering a wide range of goods and services, including tangible property, such as goods and commodities, as well as intangible property, like intellectual property and digital products. The system applies to imports of goods and services, as well as domestic transactions.

The implementation of arvonlisätys in the EU has several key benefits. It helps to simplify the taxing of goods and services across borders, reducing bureaucratic complexities and making trade easier. Additionally, the system provides a stable and transparent base for calculating taxes, which enhances economic predictability. Overall, the arvonlisätys system plays a critical role in the functioning of the EU's customs union, ensuring that value added taxation is consistent and uniform across the member states.