Research on the Financial Impact of Out-of-Price VAT on Farm Heating Enterprises

International Journal of Economics and Management Studies
© 2020 by SSRG - IJEMS Journal
Volume 7 Issue 8
Year of Publication : 2020
Authors : Liu Haoli
How to Cite?

Liu Haoli, "Research on the Financial Impact of Out-of-Price VAT on Farm Heating Enterprises," SSRG International Journal of Economics and Management Studies, vol. 7,  no. 8, pp. 1-5, 2020. Crossref,


In view of the long-term loss and capital turnover of the state-owned farm heating enterprises far away from the urban area but we can't find the objective reality of financial reasons, This paper aims to discuss the situation under the policy implementation impact of "Tax control by invoice" levied by the state. Methodologies adopted in this paper include inductive deduction, judgment, and reasoning, case analysis, etc. The paper outlines the policy basis of invoice-controlled taxes and their impact on farm heating companies. The paper also analyzed the policy implementation impact of "VAT levied in addition to price" - it could effectively avoid profit and loss while directly affecting companies' capital flows and purchase, whose failure to obtain VAT special invoice would result in the inflated operating costs for the companies. The paper is expected to provide technical guidance and valuable applications in practice for further research on the purchase agreement price and payment equilibrium point under the tax deduction policy environment and for heating companies to establish purchase internal control and finance to strengthen purchase invoice management.


Out-of-price VAT; invoice-controlled tax; financial impact.


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