Author(s):
1. Ivana Plazibat, University of Split, Department for Professional Studies, Croatia
2. Ana-Marija Alfirević, University of Split, Department for Professional Studies, Croatia
3. Ivan Peronja, Croatia

Abstract:
The objective of determining the cost price is to enable burdening every product with the exact amount of expense that was incurred by its production. Price can be defined as a value placed on the object of exchange between buyer and seller. Decision about determining selling prices is by many experts found to be among the most crucial and sensitive, but also one of the most difficult tasks of a retailer. However, some decisions are externally influenced, such as the alternation of basic value added tax rate. Value added tax (VAT) is a consumption tax, because it is paid upon purchasing and importation of goods and use of services, and on delivery of goods and services. In this paper we will refer to the impact that the increase of the basic VAT rate had on consumers. The goal was to distinguish the importance of retail price calculation analysis in retail trade, and to examine the influence of price changes that followed the increase in VAT rates. For the purposes of this paper, a survey questionnaire was conducted on 70 participants during September of 2012.

Key words:
calculation, retail price, consumers, VAT

Date of abstract submission:
24.01.2014.

Conference:
REDETE 2014 - Researching Economic Development and Entrepreneurship in Transition Economies