Impact of digitalization on development of the VAT taxation system

he article establishes that the development of e-commerce generates serious tax threats. The problem of VAT collection is exacerbated, as non-residents who carry out transactions on supplies of electronic services often fall outside the system of consumption taxation. VAT fraud also distorts competition and increases inequality in the distribution of tax burden. The OECD recommends for the countries to apply at the taxation of e-commerce the approach providing collection of VAT by the principle of country of destination including a reverse charge mechanism, which assigns obligations for payment the VAT of foreign supplier to the customer in the country of consumption. It has been found that the EU is reforming the VAT system on the following principles: tackling fraud; “One Stop Shop”, greater consistency, less red tape. The efforts of the European Commission are primarily aimed at modernizing the collection of VAT in the area of cross-border e-commerce in the B2C format, including more scope for the MOSS regime. It is concluded that in Ukraine, in order to start levying VAT from operations on supplies of electronic services to final consumers by a non-resident, it is necessary to solve the following problems: determination of potential benefits and costs from the introduction of such taxation; definition of the term “electronic services” for VAT purposes; registration of a non-resident as a VAT payer; identification of the recipient of services - the resident of Ukraine to determine the place of supply in B2C format; determination of the procedure for VAT payment; providing a non-resident - VAT payer with the opportunity to pay tax in foreign banks and submit tax reports in the electronic form; introduction of an additional procedure for verifying non-residents reporting.

MEMAJAKI TRANSAKSI EKONOMI DIGITAL: STUDI KASUS DI INDIA, PERANCIS, DAN AUSTRALIA

The digital tax is imposed on the transaction of goods and services carried out with Domestic Taxpayers or with Foreign Taxpayers without a physical presence in Indonesia. To date, the existing regulatory framework makes it impossible for Indonesia to tax those transactions. Digital taxation concepts that can be applied by Indonesia include the Income Tax and Value Added Tax. Digital tax can also be done by using a new concept specifically regulating digital tax. Indonesia introduced VAT for the foreign supplier in the mid-2020. Data were obtained through a literature review of countries that had applied taxes on digital economic transactions before Indonesia. This paper is expected to provide input for the Government of Indonesia in taxing digital transactions.Pajak digital merupakan pajak yang dikenakan atas transaksi pertukaran barang dan/atau jasa yang dilakukan oleh sesama Subjek Pajak Dalam Negeri maupun dengan Subjek Pajak Luar Negeri yang keberadaan fisiknya tidak ada di Indonesia. Alternatif pemajakan digital yang dapat diterapkan oleh Indonesia diantaranya menggunakan konsep Pajak Penghasilan (PPh), Pajak Pertambahan Nilai (PPN) atau dapat pula dilakukan dengan menambahkan jenis pajak baru khusus mengatur pajak digital. Indonesia baru mengenakan pajak untuk jenis PPN atas transaksi digital pada pertengahan tahun 2020. Data diperoleh melalui tinjauan literatur atas negara-negara yang telah menerapkan pajak atas transaksi ekonomi digital sebelum Indonesia. Tulisan ini diharapkan dapat memberikan masukan bagi Pemerintah Indonesia dalam memajaki transaksi digital.

On Import Growth Path of China’s Bulk Agri-Products from Perspective of Ternary Margins

Based on the HS6 encoded agricultural trade data from 1995 to 2018, this paper uses the ternary marginal method to analyze the import path of China’s bulk agri-products from the static and dynamic perspectives. The study finds that the import of bulk agri-products is mainly driven by the quantity margin with an average annual growth rate of 6.28 since china’s accession to the World Trade Organization (WTO). This conclusion is robust in terms of time periods, major source countries and main varieties. Improvement of living standards of Chinese consumers, innate short of advantage in supply side, opening up policy facilitating foreign supplier and unnecessary import owing to price differential all explain quantity margin impetus. At present, the main problem in the bulk agri-products has switched from insufficient amount to structural imbalance. Therefore, it is urgent to adjust the production structure and manage the import structure of bulk agri- products.

Formation of a risk assessment model when selecting a foreign supplier under a foreign trade contract

Many businesses that work with a large number of product lines face the problem of choosing a supplier of goods or services. The problem of finding suppliers is faced by most businesses that do business and are looking for new ways to optimize costs. Enterprises need to periodically search for suppliers, and this is much more difficult for them due to lack of experience, especially in relations with foreign suppliers. Procurement planning is carried out by selecting suppliers who must meet previously established criteria set by the company’s standards and legislation. The search and analysis of suppliers should be carried out systematically using all possible sources of information. At the present stage, conservative methods of searching, analyzing and selecting suppliers are being improved and supplemented with new forms and methods, but none of the existing methods of selecting a supplier properly takes into account the current operating conditions. Therefore, supply chain management is particularly relevant and requires improvement. The article suggests a model that allows identifying potentially unscrupulous suppliers even before the contract is executed in the supply chain and using management. The article presents a block diagram of the supply chain risk management model. The model specifies a key condition aimed at combining the work of all departments in order to increase the transparency of procedures. At the same time, the model will reduce the risks of the supply chain and improve the process of making logistics decisions within 3 main blocks. Information about the entire lifecycle of equipment, media, and items is stored in the supply chain information system, reflecting the status and attributes of all aspects and providing a variety of data support for decision - making

Design for Testability of Integrated Circuits and Project Protection Difficulties

Design solutions of domestic VLSI were obtained as a result of the application of computeraided design tools of a foreign supplier (CAD Synopsys, Cadence Design Systems and Mentor Graphics), based on standard libraries of PDK elements (Project Design KIT) of factories and IC-modules also supplied mainly by foreign companies. As a rule, the developer does not have its own production facilities, using the services provided by foreign factories (fablesscompanies). Due to this fact, relevant are the studies aimed at the development of a complex of measures, excluding the possibility of unauthorized changes into IC, i.e. protection of projects against intentional hardware and technology violations made during the formation of the control information for handing it over to the production facility and/or in case of IC manufacture at the factory. This paper considers this task from the standpoint of the analysis of the methodology of design for testability (DFT), i.e., a complex of measures that provide obtaining solutions at the design stage. The solutions include the verification of the correct performance of the manufactured chip by means of external tests and/or self-testing procedures. It was proposed, inter alia: 1) to analyze the libraries of standard elements used in the project with full disclosure of their specifications; 2) to create nodes with the physical non-cloning function in the projects on the basis of the libraries of standard elements in models and analysis programs; 3) to analyze IP modules used in the project with the maximum disclosure of structure, methods and algorithms for providing test coverings; 4) to provide for the development in projects of special test kits and methods of their generation at the design stage of functions in order to detect malicious nodes and programs both within SoC cores and at the level of system buses; 5) to develop at the design stage and to apply during tests a technique of special hardware measurements of parameters of the manufactured circuits and analysis of their results, inter alia, according to measurements of delays in distribution of signals and/or buses current consumption.

Buyer-supplier relational paradigm in internationalization process

PurposeThe purpose of this paper is to explore international buyer–supplier relationships in an emerging developing country context. The study examines a number of factors derived from internationalization process (IP) theory and their impacts in a novel research setting. The relational variables of trust and commitment, and their drivers, are integrated into a model examining importers’ perspectives of their supplier relationships.Design/methodology/approachThis study applied a sequential methodological approach. Initially, a conceptual framework was developed from qualitative research and then quantitatively validated using structural equation modeling (SEM). The data for this study were collected conducting in-depth interviews and survey questionnaires. For empirical validation, the SEM technique was applied to assess the proposed model.FindingsImporting firm managers perceived that the commitment of their suppliers bolstered their trust in the relationship, this contrasts with the conventional contention of a reverse relationship. The findings confirm cultural similarity facilitates communication, leading to increased knowledge and experience of importers, thereby contributing to an enhanced commitment to build trust in the relationship.Practical implicationsThe conceptual framework developed in this study provides a direction to manage and enhance understanding of IP and relationship outcome. The findings have strategic implications for practicing managers in developing and supporting their importer–foreign supplier relationships.Originality/valueThis study is unique in assessing as well as validating key constructs of IP theory in an international exchange (importer–supplier) relationship. The study offers completely a new insight in relation to applying IP theory’s relational perspectives.

Value-added tax on imported electronic services: a critical evaluation of the newly enacted South Africa legislation

Effective from 1 June 2014, all foreign businesses supplying digital products such as mobile applications to be used in South Africa are required to register as vendors. This amendment was made to align South Africa with an international trend of bringing cross-border supplies of electronic services into the Value-Added Tax regime. It effectively shifts the Value-Added Tax liability from the importer to the foreign supplier. The reverse-charge-mechanism resulted in an erosion of the tax base and placed local suppliers of digital services at a competitive disadvantage compared to foreign suppliers. This paper critically evaluates the amendment to the Value-Added Tax Act using a literature review. The aim is to determine to what extent the amendments address the shortcomings of the reverse-charge mechanism, are aligned with practices in the European Union and New Zealand and whether they comply with the principles of an effective tax system.