arvonlisäverovelvollisille

Arvonlisäverovelvollinen is a Finnish term referring to a taxable person under value-added tax (VAT) legislation. In essence, it is an entity or individual who is liable to register for and charge VAT on their taxable supplies of goods and services. This obligation typically arises when a business's turnover exceeds a certain threshold within a given financial year.

The primary responsibilities of an arvonlisäverovelvollinen include charging VAT on their sales, collecting this tax from their customers, and remitting the collected VAT to the Finnish Tax Administration (Verohallinto). They are also entitled to deduct input VAT, which is the VAT they have paid on their own business purchases and expenses, from the output VAT they collect. This mechanism ensures that VAT is ultimately borne by the final consumer.

Registration for VAT is mandatory for those exceeding the turnover limit. Once registered, the entity receives a VAT identification number, which must be used in their business transactions and communications with tax authorities. Businesses that do not meet the VAT registration threshold may voluntarily register if they wish, for example, if they make significant business purchases subject to input VAT.

There are different VAT rates applicable depending on the type of goods or services. The standard VAT rate in Finland is 24%, but reduced rates of 14% and 10% apply to certain items such as food and certain services. Arvonlisäverovelvollinen must correctly apply the appropriate VAT rate to each transaction. Failure to comply with VAT obligations can result in penalties and interest.