Vat rates differentiation in the context of commodities turnover regulation by the state

Economic Annals-XXI: Volume 132, Issue 7-8(2), Pages: 57-60

Citation information:
Sotnichenko, O. (2013). Vat rates differentiation in the context of commodities turnover regulation by the state. Economic Annals-XXI, 7-8(2), 57-60. https://ea21journal.world/index.php/ea-v132-16/

Olena Sotnichenko
Senior Lecturer,
National University of State Tax Service of Ukraine
31 K. Marx St, Irpin, 08201, Ukraine
sotnichenko.lena@mail.ru

Vat rates differentiation in the context of commodities turnover regulation by the state

Abstract. Value Added Tax (VAT) takes the lead in shaping the budget revenues in the most of the leading countries today. Also VAT is used as regulator of the processes of socio-economic development. VAT is known as a huge source of the budget income, even in times of economic downturns. Despite significant fiscal potential, VAT may be used as a regulator of economic development, included in the regulation as one of the levers of turnover. The charging rates of VAT differentiation will improve the structure of the turnover of domestic trade. The optimum of difference between the standard and reduced rates is estimated in the article. The group of products to which the reduced VAT rate can be applied is determinate.

Summarizing, we note that the implementation of measures for the improvement of the justified VAT charging will enhance its regulatory capacity in terms of impact on the turnover of the country in the domestic market, and increase the presence of the strategically important domestic products.

Keywords: VAT; Turnover of Commodities; Differentiation Rates; Budget, EU.

JEL Classification: H20; H22; H25

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Received 13.06.2013