VALUE ADDED TAX AS AN INSTRUMENT FOR ENSURING THE FISCAL FUNCTION OF TAXES

Abstract

The article examines the essence of the value added tax (VAT) as the main tool for ensuring the fiscal function of taxes. The main features of value added tax in Ukraine are indicated. It is emphasized that VAT is the most important indirect tax, which performs two key functions: fiscal in relation to the formation of budget revenues and regulatory, aimed at promoting economic development and growth. The composition and structure of tax revenues in Ukraine for 2018-2022 were analyzed. The dependence of the revenues of the investigated tax to the budget on the level of the shadow economy is determined. The factors that caused a decrease in the share of VAT in budget revenues in 2022 are singled out, including: crisis phenomena in the economy caused by military aggression, changes in tax legislation as well as in international trade relations, etc. Based on the analysis of the main tax rates in other countries, it was determined that the rates in Ukraine are not the highest. The study of the features of the value-added tax showed that the main problems in the VAT taxation system are: untimely payments of budget compensation, instability and ambiguity of regulatory and legal support, high tax rates, a complicated tax collection mechanism as well as an unfavorable tax climate. The administration of VAT needs to be improved, which will make it possible to get rid of the negative perception of this tax in the business environment. It is important to carry out constant explanatory work among taxpayers, to ensure proper protection of their rights, including the right to receive information and to appeal, to improve the qualifications of tax authorities. According to the conducted research, ways to improve VAT collection in Ukraine are proposed: proper informing of tax payers, establishment of differentiated VAT rates, improvement of the VAT refund mechanism and the system of fines for violation of the order of its collection.