nettihinta

Nettihinta is Finnish for a price that does not include value-added tax (VAT) or other mandatory charges. It denotes the price of a good or service before tax and is commonly used in Finland and other Nordic countries, particularly in business-to-business (B2B) transactions, quotations, procurement, and invoicing. The term contrasts with bruttohinta (gross price), which includes VAT and any other applicable charges.

In practice, nettihinta equals the price before VAT; the VAT amount is calculated by applying the applicable rate to the nettihinta, and the bruttohinta is nettihinta plus VAT. For example, a nettihinta of 100 euros with a VAT rate of 24% results in a bruttohinta of 124 euros. VAT rates vary by country and product category.

Because VAT is a tax that is typically recoverable for businesses, nettihinta is often the figure used in quotations, purchase orders, and accounting, while the consumer-facing price displayed in shops or on consumer invoices is usually the bruttohinta.

Etymology: nettihinta derives from netto meaning net, i.e., amount after deductions. Related terms include bruttohinta (gross price) and arvonlisävero (value-added tax).

See also: bruttohinta, arvonlisävero, alv, hinta.