Cross-Border Trade of Goods in Accounting and Taxation Contexts

The master’s thesis aims for providing a comprehensive overview of the theoretical knowledge about a cross-border trade and successively both for its application on accounting problems in the method section, and an introduction of the obligations of the payer within the cross-border trade. The scope of the thesis is discussed from the point of view of the accountancy and the taxes. The legislation of the cross-border trade is defined in the theory section followed by both the valuation at the date of the case and at the balance sheet day to which the assets inventory and debt inventory are executed including foreign currency write-downs and foreign currency write-offs of the account receivables. The chapter specifying the accountant context is also dedicated to the exchange rate differences linked to the accounting in foreign currency. The third and fourth chapter characterise the tax context of the cross-border trade particularly from the perspective of the value added tax firstly within the countries of the European Union and additionally within the countries outside the EU. Four application problems regarding the cross-border trade are provided in the method section. Not only the transaction accounting is exemplified in these problems, but also the report of the given transaction in the tax report and eventually in the VAT control statement, VAT recapitulative statement and Intrastat. The obligations of the payer needed to be fulfilled within the trades inside or outside the European Union are contrasted in the final part of the method section. The final chapter of the thesis discusses the current problems being solved by the European Union i.e. tax frauds. The level of tax frauds might be restricted by the introduction of the overall reverse charge even to the inland transactions above the limit of 17,500 EUR regardless given goods and services.