Respondent
Theme
Fiscal efficiency of value added tax in the Ukrainian economy.
Defence Date
Annotation
Thesis for the Candidate Degree in Economic Sciences. Specialty 08.00.08 – Money,
Finance and Credit – Ivan Franko National University of Lviv – Lviv, 2016.
In the thesis were disclosed different ways of interpretation of the essence of fiscal
efficiency of VAT and was proposed this way of interpretation: the ability of VAT to
ensure sufficient revenues to cover the cost of budgetary compensation, tax administration
and the ability to cover the costs carried out by collecting VAT revenues, while
minimizing losses of applying tax rebates, VAT fraud mechanisms and minimizing the
amount of shadow taxes. The factors that influence the fiscal efficiency of VAT were
discovered.
The set of indicators used to measure the fiscal efficiency of VAT were updated
with next: coefficient of revenues penalties (the correlation of overall revenues penalties
and VAT revenue), with coefficient of correlation of the amount of tax rebates and
revenue from the VAT (this ratio also provides analysis of the assessment of dynamics of
exemptions and the amount of revenue lost because of the tax rebates) and with coefficient
of the correlation of the amounts of uncompensated and compensated VAT. Their
normative values were determined and part of coefficients were used to analysis of foreign
experience.
The recommendations for improving the system of VAT punitive penalties were
improved by removing the penalty for the failure to submit or late submission of
registration documents by VAT payers and by reducing the number of punitive penalties
by uniting them, which could provide the ability to reduce the pressure on taxpayers.
The order of VAT refunds in terms of priority and in terms of applicants eligibility
to established criteria were recommended in thesis. Also the analysis of budgetary
compensation mechanism by determining the dynamics of correlation of compensated and
uncompensated amounts of VAT was made. In the thesis the algorithm of verification of
applicant’s right to obtain budgetary compensation was specifeid and the following actions
were added: the requisition of additional documents after the cameral inspection by
supervisory authority took place; the possibility of compensation after detecting the
overstatement of the amount of claimed compensation; the cancellation of the right to
receive compensation after repeated overstatement of claimed compensation within 1095
days. In the thesis was proposed to update the list of taxpayers, provided in the Tax Code,
who have no right to get budgetary compensation with one more section: taxpayers who
have overstated the amount of compensations twice or more within twelve calendar moths.
The efficiency of the approved method for forecasting the VAT was rated and the
forecast of tax revenues was made. Also were generalized the shortcomings of the
approved methods: the effect of changes in tax rates on the tax base changes does not
count, the low accuracy of taxation potential evaluation, considerably high complexity and
bulkiness of the general model, high inaccuracy of received forecasts and high dependence
on subjective opinions.
Also was proposed the introduction to the Tax Code of Ukraine the definition of
VAT and non-payers of VAT. The relationship between the size of the gross added value
and the volume of VAT revenues through the use of trend model was justified.
Investigated methods of combating fraud, applicable in the EU and proposed to introduce
the method of P-VAT in Ukraine. Ways to improve the fiscal efficiency of VAT were
identifeid, taking into account international experience in tax.
Keywords: value added, VAT, tax liabilities, tax credit, fiscal efficiency of VAT,
budgetary compensation of VAT, forecast, tax rebates, penalties.