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
References
- Danilov, О. D. (2009). Value Add Tax: Problems of optimization administration. Visnyk podatkovoi sluzhby (Herald of Tax Service of Ukraine), 12, 45-48 (in Ukr.).
- Maiburov, I. A., Kirienko, А. P. & Ivanov, U. B. (2013). Tax evasion. Problems and Solutions. Moscow: UNITI-DANA (in Russ.).
- Maiburov, I. А. (2011). The Theory of Taxation. Moscow: UNITI-DANA (in Russ.).
- Desai, M. A., & Hines, J. R. (November 2002). Value-Added Taxes and International Trade: The evidence. NBER.
- Krugman, P., & Feldstein, M. (1990). International trade effects of value added taxation. Taxation in the Global Economy. In A. Razin, & J. Slemrod (Eds.). University of Chicago Press.
- Tait, A. A. (2001). Value Added Tax: International Practice and Problems. Washington, D.C.: International Monetary Fund.
- Korzh, V. (2006). Abstract about VAT, or Financial Manipulation in Politic Speculation. Ekonomicnij Casopis-XXI (Economic Annals-XXI), 11-12, 19-21.
Retrieved from https://ea21journal.world/index.php/archive/ (in Ukr.) - Parniuk, V. (2007). Regulations Function of VAT. Ekonomika Ukrainy (Economic of Ukraine) (in Ukr.).
- Semenko, Т. М. (2011). Tax and Financial Account of VAT in the case TAX Code of Ukraine. Oblik I finansy APK (Account and Finance in Agriculture), 2, 52-57 (in Ukr.).
- Melnyk, V. M., & Soldatenko, О. V. (2006). VAT in Tax System. Finansy Ukrainy (Finance of Ukraine), 9, 85-89 (in Ukr.).
- KPMG (2013). Counting through complexity.
Retrieved from http://www.kpmg.com/global/en/pages/default.aspx - The European Commission (2013). VAT rates applied in the Member States of the European Union.
Retrieved from http://ec.europa.eu/taxation_customs/…/vat/…vat…/rat… - The Six Directive of EU Council 77/388/EU (May 17, 1997).
Retrieved from http://www.law-tax.biz/download/eulex/eu_dr6.pdf - Tax rates around the world (2013). Official web-site.
Retrieved from http://www.worldwide-tax.com - The State Statistic Service of Ukraine (2013). Official web-site.
Retrieved from https://ukrstat.gov.ua (in Ukr.) - Ebrill, L., Kin, M., Boden, J.-P., & Sammers, V. (2003). Modern VAT. Moscow: All Worlds (in Russ.).
Received 13.06.2013