arvonlisäveroilu
Arvonlisäveroilu, often abbreviated as ALV, is a consumption tax levied on the value added at each stage of production and distribution of goods and services. It is a broad-based tax, meaning it applies to most transactions. Businesses are responsible for collecting ALV from their customers and remitting it to the tax authorities. However, businesses can typically deduct the ALV they have paid on their own purchases of goods and services, effectively making the tax borne by the final consumer.
The standard rate of arvonlisäveroilu varies by country, with many European nations having rates around 20-25%.
Arvonlisäveroilu is a significant source of revenue for governments, contributing a substantial portion of their overall