scholarly journals IMPACT OF THE VAT REVERSE-CHARGE MECHANISM ON THE CASH FLOWS OF CONSTRUCTION COMPANIES IN THE SLOVAK REPUBLIC

2018 ◽  
Vol 6 ◽  
pp. 522-528
Author(s):  
Angelika Kútna ◽  
Norbert Gyurián ◽  
Zoltán Šeben
Keyword(s):  
Slovak Republic ◽  
Financial Burden ◽  
Value Added ◽  
Cash Flows ◽  
Business Environment ◽  
Value Added Tax ◽  
Construction Companies ◽  
Study Results ◽  
The Law ◽  
Reverse Charge

In 2015, the Slovak Parliament adopted the Law on Amendments to the Law on Value-Added Tax. This law came into force on January 1, 2016. One of the most significant changes was the introduction of a reverse-charge for the provision of construction works. A government statement of its positive influence on the business environment is inconsistent with the two-year experience in the building sector. The main goal of this paper is to establish the reason for the practical effects of the value-added tax reverse-charge mechanism on the construction companies. The hypothesis is that the negative effect on the cash flows of the construction companies increases ‘opportunity costs’ connected to excessive deductions. The paper focuses on evaluating and quantifying such an effect. It presents a comparison of the conditions before and after the adoption of the Act. No. 222/2004 Coll., as amended in 2016 and includes factors that influence costs and cash flows of construction companies. It but does not consider factors related to turnover and the economic situation.  The reverse-charge mechanism affects the total of tax owing, the total deductible tax, the total excessive deduction, and the construction companies’ cash flows. In this study, the data from the information system of the Slovak Republic, under the condition of anonymity, are analyzed for the period 2014–2017. The effect of the value-added tax is quantified by way of financial interest expenses. These expenses depend on time limits for the excessive deduction, total of tax owing, and on the excessive deduction amount. Indicators of ‘Financial Burden 1’ and ‘Financial Burden 2’ are calculated. The results show that the Law on Amendments of Value Added Tax has significantly affected the constructions companies since January 2016. The reverse-charge system has not changed the delay in excessive deduction payments to the taxpayer’s bank account. It has changed the amount of excessive deduction expressed through money and the total tax owing. Based on the study results, this change markedly affects the financial burden of construction companies and provides an ‘opportunity cost’ Value Added Tax payers‘ construction company.

THE IMPACT OF VALUE ADDED TAX ON CASH FLOWS OF ROAD TRAFFIC COMPANIES IN THE SLOVAK REPUBLIC

2017 ◽  
Vol 5 ◽  
pp. 254-260
Author(s):  
Angelika KĂştna ◽  
Norbert Gyurián
Keyword(s):  
Interest Rates ◽  
Road Traffic ◽  
Slovak Republic ◽  
Financial Burden ◽  
Value Added ◽  
Cash Flows ◽  
European Countries ◽  
Value Added Tax ◽  
Member States ◽  
The Impact

Within the Member States of the European Union, value added tax (VAT) is the most harmonized form of tax from all types of direct and indirect taxes. It does not affect the costs or the revenues of the company, but it affects taxpayers on the other hand. The impact on the company's cash flows is most significantly affected. The basic principle of VAT taxation consists of the following idea. The Member State of final consumption of the goods or services is the state to whom the VAT finally belongs to. The free movement of goods and services between the Member States resulted in many new traffic companies being created. The measure of VAT influence on Cash Flows depends mainly on two impact factors. The first is the length of excessive deduction payment period to taxpayer bank account. The second impact factor is the amount of excessive deduction expressed through money. The objective of this study is an evaluation and quantification of the impact of value added tax on the road traffic companies’ cash flows. The financial burden of traffic companies had an upward trend only during the first and second year of the analyzed period. Since 2006, the financial burden had a downward trend. This decrease was more significant until 2009 (the end of the financial crisis in European countries). After this year, the declining rate had moderated. This development results not only from declining interest rates of the European Central Bank but also from economic growth and development in European countries.

scholarly journals ANALISIS PERHITUNGAN PENCATATAN DAN PELAPORAN PAJAK PERTAMBAHAN NILAI ATAS EKSPEDISI ANTAR PULAU PADA PT. TAJUR JAKARTA

2014 ◽  
Vol 8 (3) ◽  
Author(s):  
Priscilia Joanna Rundengan ◽  
Jantje Tinangon ◽  
Inggriani Elim
Keyword(s):  
Case Studies ◽  
Descriptive Analysis ◽  
Value Added ◽  
Value Added Tax ◽  
Rate Of Development ◽  
Tax Laws ◽  
Dominant State ◽  
The Law ◽  
Tax Reporting

Value-added tax represent the source of revenue for very dominant state,to fulfill requirement of people. Company  as a taxpayer have to carry out their tax liability in accordance with the provisions of the tax laws are dynamic and constantly changing according to the rate of development of country’s economics. PT. Tajur Jakarta was established in 1967 which is located in Jl. Jati Baru No. 83 where the main activities of company is a shipping that uses trucking services, and that companies that count, reecord, and report Value Added Tax on the consumers of services on goods subject to Value Added Tax.The method in this research is using descriptive analysis which is describe the case studies and literature. Case studies conducted in PT TAJUR Jakarta while literature conducted by collecting data from the literature relevant to the Value-added tax. Pursuant to result of obtained research from the study,the company calculating, recording and reporting properly and in accordance with the Law No. 42 of 2009,using the rate of 10% for each taxable service / goods taxable, and also the results obtained also that the company has to deposit and tax reporting using e-SPT return and paid through the bank by the 15th of each month after the end of the tax period in accordance with law No. 42 of 2009 on Value Added Tax.

scholarly journals The proposal of taxation of international passenger transport with respect to the including into the travel services

2012 ◽  
Vol 60 (4) ◽  
pp. 299-306
Author(s):  
Milena Otavová ◽  
Veronika Sobotková
Keyword(s):  
Comparative Analysis ◽  
Slovak Republic ◽  
Value Added ◽  
Individual Member ◽  
Passenger Transport ◽  
Value Added Tax ◽  
Member States ◽  
Transport Services ◽  
Council Directive ◽  
Travel Services

Generally, international passenger transport is exempt from the value added tax, in the case of air transport. International road passenger transport is however liable to taxation. However, the Council Directive on Value Added Tax contains a number of variations in the frame of the taxation of international passenger transport both for the states that joined the Community after January 1, 1978 and also for countries that were members of the Community on January 1, 1978. The international passenger transport is therefore rather problematic field due to a number of exceptions for individual Member States. It is on the providers or recipients of transport services to inform correctly about the taxation of international road transport and to pay properly the tax. The aim of the article is to evaluate the possibilities of the taxation of international passenger transport in the Czech Republic, Austria, Slovak Republic, Germany and Poland and to determine how the taxation of international passenger transport affects the tax liability and price of travel services provided in this country. From the comparative analysis it is evident that the tax paid abroad should be included in the total price of the purchased service. Based on the comparative analysis there will be a proposal for the taxation of international passenger transport so that the tax collection in the monitored countries would be simplified. The proposal recommends to unify an approach during the taxation of international passenger transport for all Member States of the European Union in order to reduce administrative costs on the part of the governments and individual entities.

scholarly journals Relationship between Earnings Management and Earnings quality in the Globalized Business Environment

2021 ◽  
Vol 92 ◽  
pp. 02011
Author(s):  
Juraj Cug ◽  
Aneta Cugova
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Negative Impact ◽  
Earnings Quality ◽  
Information Economics ◽  
Value Added ◽  
Cash Flows ◽  
Business Environment ◽  
Scientific Methods ◽  
High Level

Research background: Earnings management is a versatile phenomenon in firms’ financial reporting and It´s purpose is to demonstrate reasonable earnings quality. Thus, earnings management has much in common with earnings quality. Purpose of the article: This paper reviews earnings management and earnings quality in an information economics framework. We focus on earnings quality determinants, impact of earnings quality and the outcomes of earnings quality for companies. Methods: Basic scientific methods of analysis, synthesis, induction, deduction and abstraction were used to meet the stated goal. Findings & Value added: In general, earnings of high quality are those that have a high level of persistence, are more predictable, more timely, less volatile and have lower level of earnings management. Earnings management has a negative impact on the quality of earnings if it distorts the information in a way that is less useful for forecasting future cash flows.

scholarly journals Georgia Tax Policy Directions in Value Added Tax (VAT) and Expected Results of Reforms

2021 ◽  
Vol 4 (1) ◽  
pp. 12-18
Author(s):  
Iza BUKIA
Keyword(s):  
Economic Policy ◽  
Environmental Factors ◽  
Tax Policy ◽  
Statistical Data ◽  
Value Added ◽  
Business Environment ◽  
Statistical Information ◽  
Value Added Tax ◽  
Positive Indicators ◽  
General Business

The research aims to review the direction of Georgia's economic policy, in particular, the reforms implemented in the field of tax policy in value added tax (VAT). For this purpose, the method of comparing the legislative records, as well as the analysis of official statistical data and their generalization are used, as well as the research I conducted (the results of a survey of entrepreneurs) on several reforms in value added tax. The current result of the major reforms in this tax is an indicator of positive dynamics. This study will allow stakeholders (as well as entrepreneurs) to evaluate the effectiveness of tax policy, which is reflected in both statistical information and international rankings. The general business environment following the reforms and the regulatory norms of value added tax (VAT) in Georgia will be analyzed. This will be the basis for observing the dynamics of the positive indicators of the reforms carried out, and at the same time to take into account the influence of environmental factors during the assessment.

scholarly journals Tax Evasion of Value Added Tax in the Conditions of the Slovak Republic

2013 ◽  
Vol 13 (1) ◽  
pp. 147-158
Author(s):  
Eva Sopková ◽  
Katarína Raškovská
Keyword(s):  
Tax Evasion ◽  
Slovak Republic ◽  
Value Added ◽  
Value Added Tax

scholarly journals Value-added tax on imported electronic services: a critical evaluation of the newly enacted South Africa legislation

2017 ◽  
Vol 9 (1) ◽  
pp. 28-42
Author(s):  
Liza Coetzee ◽  
Marisca Meiring
Keyword(s):  
South Africa ◽  
Critical Evaluation ◽  
Value Added ◽  
The European Union ◽  
Value Added Tax ◽  
Digital Products ◽  
Tax Base ◽  
Competitive Disadvantage ◽  
Foreign Supplier ◽  
Reverse Charge

Effective from 1 June 2014, all foreign businesses supplying digital products such as mobile applications to be used in South Africa are required to register as vendors. This amendment was made to align South Africa with an international trend of bringing cross-border supplies of electronic services into the Value-Added Tax regime. It effectively shifts the Value-Added Tax liability from the importer to the foreign supplier. The reverse-charge-mechanism resulted in an erosion of the tax base and placed local suppliers of digital services at a competitive disadvantage compared to foreign suppliers. This paper critically evaluates the amendment to the Value-Added Tax Act using a literature review. The aim is to determine to what extent the amendments address the shortcomings of the reverse-charge mechanism, are aligned with practices in the European Union and New Zealand and whether they comply with the principles of an effective tax system.

Zvláštní způsoby zdanění a inkaso veřejných rozpočtů u daně z přidané hodnoty

2021 ◽  
pp. 36-50
Author(s):  
Jan Neckář
Keyword(s):  
Standard Method ◽  
Value Added ◽  
Tax Administration ◽  
Special Method ◽  
Value Added Tax ◽  
Reverse Charge

In addition to the standard method of taxation, the Value Added Tax Act regulates two specific methods introduced in order to reduce VAT fraud – the regime of transferred tax liability (reverse charge) and the so-called special method of securing of the tax. In the following text, the specifics of the value added tax administration depending on the statutory (or voluntarily chosen) method of taxation and the related effects on the collection of public budgets will be pointed out. An integral part is pointing out the effects of the chosen method of taxation on tax subjects, either on the part of the supplier or on the part of the customer.

Audit and Features of VAT Taxation of Construction Companies

Auditor ◽  
2020 ◽  
Vol 6 (4) ◽  
pp. 30-38
Author(s):  
M. Kashirina
Keyword(s):  
Value Added ◽  
Controversial Issues ◽  
Value Added Tax ◽  
Construction Companies

Th e article describes the main objectives of the audit of VAT-related operations. Th e article deals with problematic, complex and controversial issues of taxation of construction companies related to the value added tax. Possible tax risks in calculating and paying VAT are analyzed.

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