Summary

Taxable value is the taxation basis of value added tax. The taxation basis is the specific monetary expression of the taxation object, or the amount, and after having been multiplied by the taxation rate it results in the taxation amount. The tax receipted by the state, therefore, depends directly on how the taxable value is determined. In addition, we need to remember that in the Value Added Tax Act the taxable value has a slightly wider meaning than only as the monetary expression of the taxation object. Taxable value must also be calculated in the case of tax-exempted turnover, and turnover taxed with a zero rate, since these turnovers are also declared. In the case of tax-exempted turnover, the value added tax due to be paid to the state depends indirectly on the taxable value, since the partial deduction of input value added tax is dependent upon the relationship between taxable and tax-exempt turnover. The taxable value also has a relevance in determining the time when the obligation to register as a person liable to value added tax occurs.

The general regulation seems to be simple at first glance, but such an impression is deceptive. Finding the taxable value can be extremely complicated in some transactions, and this still creates problems for the taxpayers (and probably also in the future). The purpose of this article is to clarify the rules for calculating taxable value on the basis of the current Value Added Tax Act, to analyse the deficiencies in the law and to offer possible solutions. The article examines the general regulation of taxable value, and some of the problems that have arisen in practice, and there is also separate attention paid to the taxation of financial services.