scholarly journals Tax Administration of VAT: Impact of Changes

2019 ◽  
Vol 62 ◽  
pp. 14001
Author(s):  
O.L. Mikhaleva ◽  
K.S. Pavlova ◽  
V.S. Charikov ◽  
D.V. Aseev
Keyword(s):  
Digital Technologies ◽  
Value Added ◽  
Digital Economy ◽  
The State ◽  
Tax Administration ◽  
Value Added Tax ◽  
Collection Rate ◽  
The Impact

The relevance of the issue examined is stipulated by the results of the conducted study of the term “tax administration” and analysis of the impact of changes in tax administration of value added tax (VAT). The purpose of this study is to investigate the impact of changes in tax administration on VAT efficiency and collection rate. Within the context of digital economy, the state implements measures to digitize VAT tax control in order to reduce its own tax risks. The solution of this issue is the development of tax administration using digital technologies. A study has been conducted in order to assess impact of changes in the tax administration on VAT efficiency and collection rate.

The Impact of Consolidated Value Added Taxation on Innovation and Investment Processes: European Experience and Prospects for Ukraine

2021 ◽  
Vol 17 ◽  
pp. 321-331
Author(s):  
Viktoriia Rudenko ◽  
Ruslan Voloshchuk ◽  
Viktor Melnyk ◽  
Oksana Tsiupa
Keyword(s):  
Quantitative Methods ◽  
Value Added ◽  
The State ◽  
European Countries ◽  
Value Added Tax ◽  
Tax System ◽  
Advantages And Disadvantages ◽  
European Experience ◽  
The Cost ◽  
The Impact

Today Ukraine is on the path to European integration, which requires the introduction of the best practices of European countries, including in terms of taxation of consolidated groups of enterprises. At present, in European countries, consolidated value added taxation is one of the ways to solve the problem of reducing the tax burden on business, providing enterprises with additional investment resources and stimulating their innovative development. In addition, the consolidated tax system reduces the cost of tax administration for both the state and business. Therefore, the issue of introducing value added tax is relevant for Ukrainian practice. The purpose of the research is to study the content and determine the specifics of consolidated value added taxation in European countries and to consider the possibilities of its application in Ukraine for innovation and investment processes intensifying. The specifics of the scientific tasks that are the subject of the study required the use of a set of special methods, the application of which helped to analyze the impact of consolidated value added taxation on innovation and investment processes in European countries. The study was conducted using quantitative methods, including comparative analysis, and qualitative methods, including case study. The study identified the essence and basic principles of consolidated value added taxation. Two types of consolidated VAT taxation in European countries are analyzed: the regime of full consolidation and the regime of partial consolidation. The advantages and disadvantages of consolidated VAT taxation for the state and taxpayers are substantiated. It was found out that in European countries, consolidated value added tax is aimed at improving the conditions of doing business and providing taxpayers with additional opportunities to apply special tax rules. As a result of the study, it was proved that the introduction of approaches in Ukraine that correspond to the European experience of consolidated VAT taxation will help to solve important tasks of bringing its tax system closer to foreign standards and intensifying innovation and investment processes at the micro- and macro levels.

Value Added Tax and Fiscal Federalism in Ethiopia

2020 ◽  
Vol 28 (2) ◽  
pp. 147-170
Author(s):  
Wollela Abehodie Yesegat ◽  
Richard Krever
Keyword(s):  
State Government ◽  
Fiscal Federalism ◽  
Central Government ◽  
Value Added ◽  
Design Feature ◽  
The State ◽  
Tax Administration ◽  
State Governments ◽  
Value Added Tax ◽  
Legal Form

Crucial to the success of any federal state is the fiscal viability of the central government and component federal states. A feature common to most federal systems is the collection of greater revenues by the central government and reliance by states on transfers from the central government in addition to locally imposed taxes to fund budget expenditures. As is the case in many other federal jurisdictions, in Ethiopia the value added tax (VAT), a tax levied on business sales but ultimately borne by consumers, is an important source of central government revenue. As is also the case in many federal jurisdictions, an assignment of a portion of central government VAT revenues to states is one of the main sources of transfer payments by the central government to state governments in Ethiopia. However, the Ethiopian version of fiscal federalism differs significantly from that found in most other jurisdictions in three key design features – the division between the central and state governments of responsibilities to administer the VAT, the basis on which VAT revenues are divided between the central government and the state governments, and a peculiar design feature that results in tax collections by one state government to be offset by tax reductions suffered by another state government. All three features are cause for concern. The division of administrative responsibility undermines the goal of comprehensive uniform tax administration. The basis for division of tax revenues, a distinction built on the legal form of businesses, leads to assignments of VAT revenue unrelated to fiscal needs. And, most importantly, the odd design feature – the assignment of revenues from the VAT, intended to be a tax on consumers, to the state in which the seller is located rather than the state of the buyer – results in effective cross subsidies when businesses located in wealthier states sell goods and services to businesses operating in poorer states. This article provides a history of the Ethiopian regime and explores how the unique features of the Ethiopian fiscal federalism system arose. It suggests a system that divides revenue on the basis of a fiscal equalisation formula that divides VAT revenues on the basis of relative budget needs of states or a system that allocates revenue to the state in which the customer is located would yield a fairer outcome than the current system. It concludes with modernisation of the tax administration coupled with the adoption of a fiscal equalisation formula for distributing VAT revenues and a generous transitional system for transition to this regime would yield the optimal path going forward.

scholarly journals Estimating the fiscal and regulatory role of value added tax

2020 ◽  
Vol 67 (6) ◽  
pp. 129-136
Author(s):  
Z. Lobodina ◽  
A. Kizyma ◽  
L. Marushchak
Keyword(s):  
Low Income ◽  
Local Governments ◽  
Value Added ◽  
The State ◽  
Value Added Tax ◽  
State Budget ◽  
Tax Rate ◽  
Fiscal Efficiency ◽  
The Impact

The impact of value added tax (hereinafter – VAT) on the socio-economic development of the state is investigated in this paper. Here it is considered as a tool of the mechanism of budgetary resources formation and regulation of taxpayers’ welfare and activities. It is determined that, in addition to the reduction of tax rate, the public authorities and local governments should provide favorable conditions for doing business, implement measures for anticorruption and market anti-monopoly. To compensate for the expences of budgetary resources occurring as a result of possible reduction in the value added tax rate, it is necessary to look for alternative sources of pumping up the state budget. Such situation could weaken Ukraine's competitiveness, increase distrust of potential investors, and deactivate attracting investments into the country's economy. In order to stimulate certain economic activities, to increase the volume or the level of availability of certain goods (services)consumption, the tax legislation provides certain preferences for value added tax, particularly – lowering the tax rate, tax exemptions, , tax credit, tax benefits. In addition, the regulatory impact of VAT as a financial instrument on the taxation system is revealed in this paper. The peculiarities of VAT administration in Ukraine and foreign countries are highlighted, the dynamics, tendencies of receipt and reimbursement of VAT in Ukraine are considered. The reasons for tax refund arrears are given and ways to improve VAT administration are proposed. Analysis of the assessment of VAT fiscal efficiency is carried out, the indicators of the assessment of this tax fiscal efficiency are determined. Despite the permanent increase in the absolute amount of this tax and its share in gross domestic product (hereinafter – GDP) and state budget revenues, the fiscal role of VAT is weakened due to such problems as regressive impact on low-income populations, tax evasion and minimization of tax liabilities, growth of volumes of VAT refunds at the expense of budgetary resource.

PROBLEMS OF CALCULATING THE VALUE ADDED TAX AND THE WAYS TO SOLVE THEM

2021 ◽  
pp. 7-12
Author(s):  
Marina V. Lvova ◽  
Anna L. Kuzmina
Keyword(s):  
Value Added ◽  
Federal Budget ◽  
The State ◽  
Necessary Condition ◽  
Tax Administration ◽  
Value Added Tax ◽  
Tax Legislation ◽  
Financial Interests ◽  
The One ◽  
Definition Of

This article reveals the main problems that arise when calculating the value added tax. The ways to solve the above-indicated problems are suggested. The concept of value-added tax is considered. The main errors in VAT calculation are revealed: incorrect calculation of the taxable object, unlawful tax deductions. The definition of the concept "paper VAT" is given. The necessary condition for the effective functioning of the tax system is revealed. Tax administration is impossible without a clear and well-functioning work of tax authorities on various levels. One of the main conditions for effective tax administration is inevitability of bringing to tax liability for persons who committed violations of tax legislation. The authors of the article compiled the table that reflects the problems of VAT calculating and the ways to solve them. These measures will make it possible to tighten the control actions of the tax authority and at the same time they will simplify the process of administering the value added tax. All this will make the organization's activities, on the one hand, transparent, and on the other hand, will influence the decline of the shadow economy sector as a whole. The relevance of the research topic is due to the fact that in modern conditions, creation of a solid financial system of the state is impossible without the system of effective tax control, which is designed to ensure the financial interests of the state while respecting the rights of taxpayers. VAT is one of the regulators in redistributing public goods and is one of the main and stable sources of the federal budget replenishment. That is why the issues related to the improvement of tax control organization in the field of VAT, the analysis of the effectiveness of the controlling tax authorities' functioning as well as identification of the ways to improve tax control, are very relevant.

IMPROVEMENT OF VALUE ADDED TAX ADMINISTRATION -FACTOR IN MAINTAINING SUSTAINABILITY OF THE STATE BUDGET INCOME

2020 ◽  
Vol 5 (3) ◽  
pp. 21-26
Author(s):  
Mirzohid Kamilov ◽  
Keyword(s):  
Value Added ◽  
The State ◽  
Tax Administration ◽  
Value Added Tax ◽  
State Budget ◽  
Foreign Countries

In this article the directions for improvement of value added tax administration based on the experience of foreign countries are studied. Besides, problems at administration of the tax to the added cost in Uzbekistan have been revealed and scientific offers and recommendations for their decision are developed

Digital economy: conceptual and strategic aspects of development

2020 ◽  
pp. 40-52
Author(s):  
D. Volkov
Keyword(s):  
Public Administration ◽  
Digital Technologies ◽  
Digital Economy ◽  
The State ◽  
Long Wave ◽  
End To End ◽  
Advanced Development ◽  
Digital Sphere

The article proves the need to "return" the state to the economy in order to implement digital mobilization and form a new mechanism of public administration, including the article analyzes the key conditions for Russia’s transition to the path of "advanced development", reveals not only the content of the levels of the digital sphere, but also its end-to-end digital technologies, all the challenges and threats generated by the development of the digital economy, examines the need and possibility of Russia’s movement to the sixth technological order, provides an algorithm for the transition to the phase of a new long wave (the big or Kondratiev cycle).

ЦИФРОВАЯ ТРАНСФОРМАЦИЯ ЭКОНОМИКИ РОССИИ:УГРОЗЫ И ПЕРСПЕКТИВЫ

2020 ◽  
Author(s):  
T.B. Mikulin ◽  
IU.S. Panov ◽  
L.I. Krugliak
Keyword(s):  
Digital Technologies ◽  
Developed Countries ◽  
Digital Economy ◽  
The State ◽  
Modern Trend ◽  
State And Society ◽  
Radical Transformation

развитие цифровых технологий сформировало современный тренд к переходу на цифровую экономику для многих развитых государств, что требует кардинального трансформирования многих сфер деятельности государства и обществаthe Development of digital technologies has formed a modern trend towards the transition to a digital economy for many developed countries, which requires a radical transformation of many areas of activity of the state and society.

Mathematical models forecasting the transformation of the tax path of large russian companies

2019 ◽  
Vol 5 (3) ◽  
pp. 193-203
Author(s):  
Kristina A. Bannova ◽  
Nurken E. Aktaev ◽  
Yulia G. Tyurina
Keyword(s):  
Information And Communication Technologies ◽  
Business Processes ◽  
Digital Economy ◽  
The State ◽  
Russian Society ◽  
Financial Flows ◽  
Business Entities ◽  
Object Of Study ◽  
Tax Changes ◽  
The Impact

Digital technologies have changed the relationship between the society and business entities, taxpayers and the state. Ceteris paribus, the ability to effectively manage financial flows and make administrative decisions depends on the correct and established interaction between the state and taxpayers. This study aims to form and develop a taxpayer’s understanding of the digital age with all its features and opportunities for information and communication technologies, including mathematical modeling methods that form the basis of the digital economy for building and sustaining business development, improving the systemic vision of business processes. The research hypothesis is that the further development of economic entities management in the digital context, as well as the coordination of these entities’ interests, is possible only in the partnership of the key economic participants, with the taxpayer at the forefront. That will allow identifying the areas for improving tax trajectories. Using polynomial approximation, the authors have obtained the models of tax trajectories of companies that allow predicting tax burden. The data for approximations are obtained using the previously constructed mathematical model of the optimal tax path. The main input data of the model are fixed assets and human resources, the totality of which form the production function. The analysis of the transformation of tax paths shows ways for achieving a balance of interests between both the state and the taxpayers. Finding this balance will help to overcome the crisis of confidence in the authorities, the development of adaptability and creativity of Russian society to new tax changes. A number of parameters determines the scale of this task. They include the complexity of the object of study, the long-term and multi-aspect nature of the impact which modeling the digital economy has on adaptation to the new digital realities of the state and taxpayers, as well as the absence of significant analogues of the solution to this problem in global and Russian economics.

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