SHS Web Conf.
Volume 91, 2021Innovative Economic Symposium 2020 – Stable Development in Unstable World (IES2020)
|Number of page(s)||7|
|Section||Stable Development in Unstable World|
|Published online||14 January 2021|
Value Added Tax and Its Influence on Pricing and Price Decision Making of Companies – A Case Study
University of Zilina, The Faculty of Operation and Economics of Transport and Communications, Department of Economics, Zilina, Slovakia
* Corresponding author: firstname.lastname@example.org
Pricing is a complex process that is influenced by many factors, which companies must constantly take into account when creating prices. The final selling price is formed by various influences, including the impact of value added tax (VAT). This tax affects all final consumers, but it also affects the businesses themselves in setting their sales prices. The main goal of this paper is to analyze the impact of VAT on pricing and to prove the fact that VAT values affect both the payer and the non-payer of VAT, if they buy from the VAT payer. The purpose is to point out the difference in the selling price between these two entities and thus to prove the influence of VAT on their pricing. In this paper, the methods of induction and deduction were used, as well as methods of analysis and synthesis. Based on the performed analyzes, we proved the influence of VAT on the pricing of both the payer and the non-payer of VAT, while the difference is observable in the amount of their selling price and tax liability.
Key words: pricing / VAT / VAT payer / VAT non-payer / selling price
© The Authors, published by EDP Sciences, 2021
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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