nettohinnasta

Nettohinta is the Finnish term for the price of a product or service before value-added tax (VAT) is added. The form nettohinnasta is the genitive case, used when referring to the net price within a sentence or document, for example in contracts or price lists: "nettohinnasta sovitaan alennus" or "nettohinnasta on kyse." In practice, the net price is distinct from the bruttohinta, or gross price, which includes VAT. The relation is: bruttohinta = nettohinta + VAT. The VAT rate varies with country and product category; in Finland, as in other EU states, VAT is applied to most goods and services and the amount is shown separately on invoices.

In everyday commerce, the price tag shown to consumers is typically the gross price, including VAT. For business customers, prices are often quoted as nettohinta, with VAT added on invoicing. In accounting and procurement, nettohinta serves as the basis for cost calculations, budgeting, and tax reporting, while the gross price is the amount paid by customers. Example: a product with nettohinta 100 EUR and a VAT rate of 24% results in a VAT of 24 EUR and a bruttohinta of 124 EUR.

The term nettohinnasta therefore primarily appears in formal writing and pricing documents where the net price must be distinguished from the gross price or where Finnish grammar requires the genitive form.