MANAGEMENT OF VAT FOR EXAMPLE ON THE TRADING COMPANY

The article presents the management of VAT in the trading company, in which revenues are seasonal. In order not to lose liquidity in the summer months the owners of the company have developed a way to spread the VAT obligations evenly across all months, increasing inventory in stock in winter’s months, but at the same time using the discounts, extended payment terms, and taking into account the long term orders. As a result, such a way of managing VAT significantly reduces the risk of the company and causing strengthening its market position.