Gross value added (GVA)

The concept of gross value added (GVA) at factor cost is not used in the European System of National Accounts (ESA); instead, GVA at basic prices is used. The former can be derived from the value added at basic prices by subtracting other taxes (less subsidies) on production. The concept used in business accounting is GVA at factor cost.

The basic price is the price that producers receive from buyers for each unit of a good or service produced, minus any taxes payable, and plus any subsidies receivable, on that unit as a result of its production or sale (i.e., excluding taxes on products and including subsidies on products). It excludes transport charges invoiced separately by the producer. It includes transport margins that the producer lists on the same invoice, even if they constitute a separate item on it.