Angelika Kútna, Norbert Gyurián


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.


value added tax, cash flow, excess deduction, Traffic Company, expense interest

Full Text:



Akbar, S., Shah, Z.A., Stark A.W. (2011). The value relevance of cash flows, current accruals, and non-current accruals in the UK. International Review of Financial Analysis, 20, p. 311–319

Babone, L., Bird, R. M. & Vazquez-Caro, J. (2012). The Costs of VAT: A Review of the Literature, International Center for Public Policy, Working Paper, 2012(4), p. 12-22.

Barth, M. E., Cram, D., & Nelson, K. (2001). Accruals and the prediction of future cash flows. The Accounting Review, 76(1), p. 27–58.

Baštincová, A. ( 2009). Zmeny v daňovom systéme po zavedení eura v Slovenskej republike. In: Účtovníctvo a audítorstvo v procese svetovej harmonizácie – Elektronický zborník z medzinárodnej vedeckej konferencie, p. 14-17, Bratislava, Ekonomická univerzita v Bratislave

Becker, J., Fuest, C. (2010). EU regional policy and tax competition. European Economic Review, 54(1), p. 150-161

Bojňanský, J., Krajčírová, R., & Ferenczi Vaňová, A. (2013). Dane podnikateľských subjektov. (Taxes of entrepreneurs.) Nitra: Slovak University of Agriculture.

Céspedes, J., González, M., Molina, C.A. (2010). Ownership and capital structure in Latin America. Journal of Business Research, 63, p. 248–254.

Creedy, John. (2010). Tax- and Transfer Tensions - Designing Direct Tax Structures. Australian Economic Review, 43(2), p. 103-113.

D´Mello, R., Miranda, M. (2010). Long-term debt and overinvestment agency problem. Journal of Banking & Finance, 34, p. 324–335.

Feranczi Vaňová, A., Krajčírová R., Váryová I., Košovská, I. (2015) Depreciation influence of fixed assets on accounting result and corporate income tax base pursuant accounting and tax legislation in the Slovak Republic. In: Finance and performance of firms in science, education and practice. Zlín: Tomas Bata University in Zlín, p. 287-296.

Hájek, L., Hamplová, E., Jedlička, P., Kovárník, J. (2015) The Causalities of the Tax Incidence and the modeling of tax Processes. In : Procedia Economics and Finance, 23 , p. 1253 – 1259

L. Lang, E. Ofek, R. Stulz. (1966), Leverage, investment, and firm growth. Journal of Financial Economics, 40 (1), p. 3–29.

Sandmo, A. (2006). Optimal taxation in the presence of externalities. Bergen: Norwegian school of Economics and Business Administration.

Staciokajs, R., & Valanciene, L. (2002). Optimization of Taxation by Reducing Taxes to State and Local Government Budgets. Inzinerine Ekonomika-Engineering Economics (4), p. 30-33. Tsoukalis, L. (1993).

Subramanyam, K. R., & Venkatachalam, M. (2007). Earnings, cash flows, and ex post intrinsic value of equity. The Accounting Review, 82(2), p. 457–481.

Svátková, S., Klazar, S., Slintáková, B., Zelený, M. (2007) Zatížení spotřebního koše domácností daněmi ze spotřeby v ČR. Prague: Eurolex Bohemia.



  • There are currently no refbacks.

Print ISSN 1805-997X, Online ISSN 1805-9961

(c) 2016 Central Bohemia University