The taxation of cross-border transactions within federal or common markets presents significant challenges to the efficient and fair application of VAT. This article discusses the interstate tax ...jurisdiction and collection rules applied in the European Union, the United States and Canada. The analysis finds that while the destination principle is dominant, there are very important differences in law and in practice between the three jurisdictions. In the EU, the cost of following the destination principle appears to be significant complexity and fraud. In the US, the absence of a VAT places a significant barrier to achieving the principle since the use tax is unable to effectively fix the problems. In contrast, the system in place in Canada, while complex, seems to do a good job at protecting the sales tax base in relation to interprovincial cross-border transactions.
The research aimed to analyze the influence of the standard VAT rate and the number of existing rates on the efficiency of VAT collection in the old and new member states of the European Union. The ...Student's t-test was applied to assess the significance of the model coefficients. P-values< 0.05 provide evidence that the parameter under test is significant. The study's conclusion is that a tax system containing a small number of reduced VAT rates and one relatively low standard rate of this tax is a system that will be less exposed to danger from unscrupulous entities practicing tax fraud.
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GEOZS, IJS, IMTLJ, KILJ, KISLJ, NLZOH, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UILJ, UL, UM, UPCLJ, UPUK, ZAGLJ, ZRSKP
Canada's GST qualifies as one of the most important fiscal innovations in the country's history. Due to its expansion to the subnational sphere through harmonisation, its scope has grown over time. ...This has amplified the non-neutralities, inequities, and compliance and administrative costs that have existed since its inception in 1991. This article briefly reviews the GST against best design practices and carefully examines the numerous exclusions from the base (tax preferences) present in the system. The central analysis focuses on the tax expenditures associated with those preferences and assesses whether the GST is the best instrument to achieve their objectives. The article concludes that the GST is not the best instrument and it identifies alternatives where feasible. It proposes the elimination of some of the GST reliefs (non-export zero rating, exemptions, and rebates) in the short term, and calls for a comprehensive review of the GST regime that pertains to public sector bodies, non-profit and charitable organisations, and the financial sector.
The article presents the results of a study on the assessment procedure of counterparty integrity, which helps to determine the reliability and legal status of any involved contractors. The argument ...rests on the methods of system and institutional analysis, economic analysis of business operations, and comprehensive legal analysis of entrepreneurial operations. Relevance of the study consists in the theoretical and practical importance of efficient subcontractor management, as well as in the need of an engineering design company to establish a unified procedure for dealing with partners. The procedure of integrity assessment of counterparties (suppliers, subcontractors) of a design company includes some economic and legal techniques. Design companies use the counterparty integrity concept in verifying whether the value added tax on exports is computed correctly, whether the VAT refund (deduction) is justified, and whether the procurement of some works, services and commodities is economically reasonable. Verification of the physical existence of a counterparty and the authority of persons who sign contracts and issue letters of authorization is also provided. In contrast to existing verification methods, the approach used in this article allows choosing the best way to deal with international partners. Additional measures to disclose unfair practices of partners by means of a legal review of counterparty documents are developed. The article presents a tested form of reporting of counterparty negotiations. A set of measures for a detailed counterparty verification allows systematizing the procedure of integrity assessment of counterparties (suppliers, subcontractors) of a design company. The procedure and measures suggested in the paper will help design companies reduce their business risks.
Стаття присвячена дослгдженню та розбудов! ново! моделг адмййстрування податку на додану вартктъ з використанням можливостей банкк, що в рамках ново! модел1 обмшюватимутъся данами İ3 органами ДПС та ...аналгзуватимуть платеж! м1ж контрагентами щодо ïx вгдношення до розрахунтв з ПДВ. ОбГрунтовано можливктъ вгдмови eld складання податкових докуменпив при гдентифшаци авансу та запропоновано у зв'язку з цим доповнити формулу ресстрацшного л1м1ту ПДВ новими компонентами, значения яких знайдутъ вгдображення у Деклараци з ПДВ та новому Додатку до nei. Також запропоновано збагатити формат податково! накладно! данами щодо попередтх платеж1в та формат платежного доручення пов'язаною İ3 ПДВ шформацкю. У cmammi наведено формат обмену поведомленнями меж банками та органами ДПС щодо пов'язаних ез ПДВ платежев. В роботе наведено схему функцкнування новое моделг адменестрування ПДВ та наведено приклада формування зветних показникгв.
Economic entities may register, for VAT purposes, before or after the start of economic activity. In practice, for taxable persons registered for VAT purposes, situations may arise that lead to the ...cancellation of the VAT code. These taxpayers may be re-registered as value added tax payers if they meet certain conditions. That is why we have presented the fiscal and accounting effects regarding the cancellation of the VAT code, on the date of cancellation, in the period in which the code is canceled as well as from the date of re-registration for VAT purposes. The case studies present the situation of a taxpayer, supplier, in the three periods, but also the effects on the taxpayer-client of the person who has the VAT code canceled and subsequently regained it.
Introduction. The accounting and tax legislation of Ukraine is in the process of its approximation to the requirements of the European Union. This is especially true for taxes accompanying the ...movement of goods and services in the context of cooperation between countries, with value added tax (VAT) being the main of these taxes is. Purpose. The purpose of the paper is to identify both common and distinctive features of the Ukrainian tax legislation on VAT with regard to the European requirements according to the current Association Agreement, assess the effectiveness of VAT rates and identify general trends in the dynamics of structural fractions of VAT in GDP and VAT rates. Methods. We applied the methods of scientific analysis and comparison, induction, and a systematic approach. Also, we used the expert judgment method to determine the likelihood of positive and negative consequences of lowering the VAT rate. Results. The study investigates the formation of legislation on administration of VAT in both the EU and Ukraine. The research determines the law basic eligibility criteria within the definition of: taxpayers, objects of taxation, tax base, tax accounting rules, tax primary documents and reports, and methods of administration. The article compares the basic details of the primary documents as well as their common and distinctive features. In particular, we compared primary and summary documents registration operations for displaying the electronic VAT administration system as well as general and reduced VAT rates in Ukraine and the EU. The authors of the article propose the main steps towards the convergence of electronic forms of primary documents. We conducted an analysis of the efficiency of VAT rates in both the EU and Ukraine and identified the factors that impact the change in the relevant indicators. The conducted research offers an overview of modern European trends in terms of improving VAT administration. Discussion. There is no absolutely effective VAT administration scheme. Therefore, the issue remains open and controversial. The study of the effectiveness of VAT rates in the EU and Ukraine has shown that, there was a decline in the efficiency in half of the EU countries during the 2014-2017 period. It has been estimated that a reduction of the joint European rate of VAT up to 15%, under certain specified conditions, would increase the efficiency of VAT rates in all EU countries and lead to other positive effects.
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