Język Polski
English
Published
:
2010-06-30
VAT Neutrality and Cashflow Budget
Anna Czarnecka
Abstract
Value added tax settlements affect the financial liquidity of businesses. VAT, although it was - by its very nature - to be neutral with respect to businesses, it is not neutral with respect to cash flows. This is caused by the limited neutrality of VAT (limitations on the right to deduct input tax from output tax, deferrals of deductions, formal requirements etc.). Executing a budget with regard to VAT seems to be the most difficult, as this depends on external factors, i.e. the date of receiving an invoice from the contracting party, compliance with the formal requirements with regard to documents, changes in tax regulations. The matter is made even more complicated by the multiphase nature of VAT. In this publication there is demonstrated with the help of function (4) that increasing of current VAT-liabilities makes current ratio of financial liquidity going down.(original abstract)Keywords:
Value Added Tax (VAT), Financial liquidityDetails
References
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Authors
Citation rules
Czarnecka, A. (2010). VAT Neutrality and Cashflow Budget. Zeszyty Naukowe Wyższej Szkoły Bankowej W Poznaniu, 28(28). Retrieved from https://journals.wsb.poznan.pl/index.php/znwsb/article/view/1604