The Financial Impact of Value Added Tax (VAT) on Supply Chains

Item Type Conference or Workshop Item (Paper)
Abstract This paper examines the coupling of Value Added Tax (VAT), an indirect tax collected by companies, and physical distribution within Supply Chains. Practical evidence and theoretical analysis indicate, that VAT - against its design principle - financially impacts the involved companies. VAT is a result of ownership transfer in material flows between suppliers, customers, and legally independent businesses of a multinational corporations (MNCs). The costs VAT taxation causes therefore are Supply Chain costs and need to be considered in the optimization of Supply Chains. We explain how VAT taxation causes costs and derive that temporal dispersion of VAT cash flows cause bound capital. Based on this, we conceptionally propose a method for the calculation of the costs.
Authors Cetin, Bora & Hofstetter, Joerg S
Language English
Subjects business studies
HSG Classification contribution to scientific community
HSG Profile Area SoM - Business Innovation
Refereed Yes
Date 24 June 2014
Publisher Academy of International Business
Page Range 27
Title of Book Proceedings of the 56th Annual Meeting of the Academy of International Business "Local Contexts in Global Business"
Event Title 56th Annual Meeting of the Academy of International Business 2014
Event Location Vancouver, BC, Canada
ISSN 2078-0435
Depositing User Dipl.-Ing. Bora Cetin
Date Deposited 15 Jul 2014 13:41
Last Modified 20 Jul 2022 17:21
URI: https://www.alexandria.unisg.ch/publications/232824

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Cetin, Bora & Hofstetter, Joerg S: The Financial Impact of Value Added Tax (VAT) on Supply Chains. 2014. - 56th Annual Meeting of the Academy of International Business 2014. - Vancouver, BC, Canada.

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https://www.alexandria.unisg.ch/id/eprint/232824
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