nollaverokannan

Nollaverokannan, literally meaning the zero tax base in Finnish, is a term used in tax policy to describe a tax regime in which a defined tax base is taxed at a rate of 0 percent. It is most commonly associated with value-added tax (VAT), where certain goods or services are subject to a 0% rate or are exempt from VAT while allowing input VAT deduction in some cases.

Within the VAT framework, a zero rate is typically applied to exports or other qualifying transactions to avoid cascading taxation and to preserve cross-border competitiveness. A 0% rate differs from an exemption: with a zero rate, businesses can reclaim input VAT on purchases related to the taxed supply, while with a general exemption, input VAT may not be reclaimable.

Implementing the nollaverokannan requires documentary evidence and compliance measures: export documentation, transport to non-EU destinations, and accurate invoicing showing 0% VAT; reporting in VAT returns; and risk management to prevent fraud.

Policy discussions around nollaverokannan focus on its revenue impact, administrative costs, and effectiveness in achieving policy goals such as facilitating exports or reducing consumer prices. It is part of broader discussions of VAT structure and exemptions in Finland and the European Union.

See also: value-added tax, tax exemption, zero-rated goods, tax policy.