• Angelika Kútna J. Selye University, Faculty of economics, Slovak Republic
  • Norbert Gyurián J. Selye University, Faculty of economics, Slovak Republic
Keywords: value added tax, cash flow, excess deduction, Traffic Company, expense interest


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.


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