Research on Manufacturing Cash Flow Risk Control Based on the VAT deduction system

International Journal of Economics and Management Studies

© 2020 by SSRG - IJEMS Journal

Volume 7 Issue 8

Year of Publication : 2020

Authors : Bao Zhenbo

10.14445/23939125/IJEMS-V7I8P105

How to Cite?

Bao Zhenbo, "Research on Manufacturing Cash Flow Risk Control Based on the VAT deduction system," SSRG International Journal of Economics and Management Studies, vol. 7,  no. 8, pp. 32-38, 2020. Crossref, https://doi.org/10.14445/23939125/IJEMS-V7I8P105

Abstract:

In view of the objective reality that the implementation of vat tax deduction method is easy to cause the purchase price to deviate from the actual payment of funds, resulting in the business cash flow risk out of control, combined with the provisions of the current VAT legal system, list the relevant business data of manufacturing, adopt the judgment reasoning, the case analysis, the equilibrium point index measurement, and the comparative analysis method, etc. A brief analysis of the impact of value-added tax on the cash flow of the company by virtue of the invoice deduction system expounds the policy basis of manufacturing VAT voucher deduction, explores the identification, evaluation and control strategy of the cash flow risk caused by VAT in the risk management process, and focuses on the method and application of cash flow risk assessment that enterprises can't obtain the special VAT invoice for purchasing. In order to develop a purchasing price strategy and strengthen cash flow management for enterprises to provide an innovative theoretical basis.

Keywords:

VAT；manufacturing industry；Cash flow risk management.

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