Historical aspect and current realities of value added tax in the context of ukraine's eu integration

Shtyk, Yulia and Штик, Юлія В’ячеславівна and Штык, Юлия Вячеславовна and Shchurenko, M.V. and Щуренко, М.В. and Щуренко, Н.В. (2019) Historical aspect and current realities of value added tax in the context of ukraine's eu integration. Східна Європа: економіка, бізнес та управління (6 (23)). pp. 726-731. ISSN 2518-1971

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Abstract

The problem of building an efficient tax system is one of the most pressing problems in Ukraine. The changes that have taken place in the Ukrainian tax system in recent years are not sufficient to effectively and reliably ensure the successful economic functioning of the state. The purpose of the article is to investigate the history of VAT and to analyze the current realities of value added tax and to make proposals on the size of preferential rates. Value added tax is a key tax in the tax system of Ukraine and EU countries. The article identifies that the process of introducing VAT in EU countries has been completed in 3 stages. It is concluded that VAT in the EU is quite flexible and efficient compared to Ukraine. In Ukraine, VAT has played a key role in shaping the state budget, according to an analysis of the last four years. The basic VAT rate in Ukraine is average compared to EU countries. Discount rates have a greater divergence, so it has been proposed to expand the list of goods and services to which it applies. VAT administration is an important element in the tax system of Ukraine, and therefore it is impossible to consider the nature of VAT without the procedure for its administration. Ukraine strives to harmonize VAT as much as possible in accordance with the requirements of European legislation. Therefore, one of the steps in the reform of the VAT administration was the introduction of the CEA of VAT. With the introduction of the electronic VAT administration system, Ukraine has become one step closer to European standards. After all, most Western countries use the electronic form of workflow and reporting. The main purpose of the implementation was to prevent abuse by illegally receiving VAT refunds from the country's budget. The e-administration systems of our and Western countries have some differences. After the introduction of electronic administration, information about the amount of VAT budget resources is available at any time. However, this system is not the most effective and therefore the issue of the development of our country's electronic system should be considered first and foremost. Borrowing foreign experience is one method of addressing some issues.

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