VALUE ADDED TAX: FOREIGN EXPERIENCE AND PROBLEMS OF ADMINISTRATION IN UKRAINE

Abstract

It is established that the value added tax is one of the budget-generating taxes with the highest level of fiscal efficiency, however, given the large number of benefits and complicated accounting procedures, it provides opportunities for the appearance of various kinds of «shadow» schemes. In order to avoid such negative phenomena, an electronic administration system has been introduced, which is constantly improved at the legislative level. The latest changes concern the verification of tax invoices / adjustments calculations for compliance with certain criteria defined by the Electronic Monitoring System, which takes place in three stages:1) control of the risk of the taxpayer; 2) diagnostics of compliance with the indicators of positive tax history; 3) checking the risk of transactions. It has been found that such changes are quite positive, as they lead to a decrease in the number of blocked billing in comparison with the practice and regulatory requirements of 2017. This is due to the wider range of so-called «cut-off» criteria at each stage of the monitoring. At the same time, there are a number of criteria that it is difficult to answer, in particular, to agrarian enterprises. Therefore, it has been determined that further analysis of the difficulties that arise in the process of registering tax invoices / adjustments calculations with further improvements to the Electronic Monitoring System is necessary.