VAT and its Influence on Buying Behaviour
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216305%3A26510%2F17%3APU124536" target="_blank" >RIV/00216305:26510/17:PU124536 - isvavai.cz</a>
Result on the web
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DOI - Digital Object Identifier
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Alternative languages
Result language
angličtina
Original language name
VAT and its Influence on Buying Behaviour
Original language description
Research background: Value added tax, as an instrument of fiscal policy and also a very important income for the state budget. It is one of the universal indirect taxes, which has a significant influence on the price level in the country. The Euro-pean Union's system of value added tax on goods and services are primarily gov-erned by "the 6th VAT Directive" set by the European Commission. Purpose of the article: The paper deals with the question of how changes in the rates of value added tax influence buying behaviour of customers. Buying behav-iour could be expressed as decisions of customers about expending their own re-sources such as money, effort and time, on items related to their consumption in order to meet their needs. Methodology/methods: The area of the research is a Czech retail market with food. Due to the nature of VAT, the influence of this tax on buying behaviour was quantified by price elasticity of demand respectively indirect tax elasticity of de-mand. The article is conceived as a case study, according to the principles R.K. Yin. The evaluation of buying behaviour is based on real data, which deals with volumes of sales and sales prices realized in a specific Czech retail chain, which associate more than 200 shops. Findings: The goal of the study is not only to propose the way how to identify buyers' response to the changes in the VAT rate, but also to bring the knowledge about customers’ response to the realized changes, and finally to propose how to use this knowledge in a development of pricing strategy in case of further changes in the VAT rate.
Czech name
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Czech description
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Classification
Type
D - Article in proceedings
CEP classification
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OECD FORD branch
50201 - Economic Theory
Result continuities
Project
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Continuities
S - Specificky vyzkum na vysokych skolach
Others
Publication year
2017
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Article name in the collection
Contemporary Issues in Economy
ISBN
978-83-65605-03-0
ISSN
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e-ISSN
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Number of pages
10
Pages from-to
267-276
Publisher name
Institute of Economic Research, Ploish Economic Society, Branch in Toruń
Place of publication
Toruń, Poland
Event location
Toruń, Poland
Event date
Jun 22, 2017
Type of event by nationality
WRD - Celosvětová akce
UT code for WoS article
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