A FLAT-RATE VAT SYSTEM OR GENERAL RULES IN AGRICULTURE?

Abstract

The aim of the paper is to present the most important problems of VAT in agriculture. The key issue concerns the assessment of the attempt to optimize the economic and financial performance of the VAT settlement. The farmer chooses and settles VAT in a flat-rate system or according to general rules. The question is which form is more favorable. On the basis of mathematical formulas, an appropriate criterion was chosen for the choice of the form of VAT settlements in agriculture. It is a very important issue from both: theoretical and practical point of view for the management of agricultural activity. The despite functioning of VAT in agriculture for many years, its rules are misinterpreted. From the point of view of the ordinary farmer, it means many cases erroneous choices and consequently reduced his efficiency. It is hoped that this publication will build theoretical foundaments and it will allow farmers to verify diagnoses and recommendations for VAT settlement in the management of agriculture.