arvonlisäverolliseen

Arvonlisäverolliseen, often abbreviated as ALV, is the Finnish term for Value Added Tax (VAT). It is a consumption tax levied on the value added at each stage of the production and distribution chain of goods and services. Businesses that are registered for VAT collect it from their customers and pay it to the tax authorities. However, businesses can generally deduct the VAT they have paid on their own business-related purchases. This ensures that the tax burden ultimately falls on the final consumer.

The standard VAT rate in Finland is 24%. Reduced rates apply to certain goods and services, such as food products (14%) and books, newspapers, and passenger transport services (10%). The Finnish Tax Administration, Verohallinto, is responsible for administering VAT. Businesses are required to file VAT returns periodically, typically monthly, quarterly, or annually, depending on their turnover. Failure to comply with VAT regulations can result in penalties and interest. Understanding and correctly applying VAT is crucial for all businesses operating in Finland.