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Issues of Improving Value Added Tax
Corresponding Author(s) : Sharyar Kuanishbaevich Bisenbaev
American Journal of Economics and Business Management,
Vol. 7 No. 11 (2024): November
Abstract
This article examines the challenges and improvements needed in the application of Value Added Tax (VAT), an indirect tax widely adopted globally. VAT’s regressive nature and burden on low-income groups are highlighted, along with its influence on consumer demand and inflation. The paper analyzes VAT’s advantages, such as its wide tax base and automatic adjustment to inflation, which make it crucial for fiscal efficiency. It reviews various VAT calculation methods, exemptions, and rate-setting practices, discussing the economic impact of these factors. Through a literature review and comparative analysis of VAT practices, the study identifies key areas for reform, including rate optimization, reduction of exemptions, and tackling the “VAT gap” to enhance revenue and compliance. In this research work, the features of VAT application, tax rate setting and consequences of VAT exemption are considered. A review of scientific literature on VAT was carried out. The assessment of VAT, rate setting, imbalances in tax exemptions and tax breaks are analyzed. As a result of the analysis, relevant conclusions were formed.
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- Barham, Vicky, Satya N. Poddar, and John Whalley, 1987. The Tax Treatment of Insurance under a Consumption Type, Destination Basis VAT. National Tax Journal 40 (2), 171–182.
- Campio Group, 2024.https://www.campiogroup.com.
- de Mooij Ruud and Swistak Artur, 2022. Value-Added Tax Continues to Expand. https://www.imf.org/en/Publications/fandd/issues/2022/03/b2b-value-added-tax-continues-to-expand.
- EC, 2023. VAT GAP REPORT.
- Edgar, Tim, 2001. Exempt Treatment of Financial Intermediation Services under a Value-Added Tax: An Assessment of Alternatives. Canadian Tax Journal 49 (5), 1133–1219.
- Grubert, H., & Mackie, J. B.,2000. Must financial services be taxed under a consumption tax? National Tax Journal, 53(n.1), 23–40.
- Hoffman, Lorey Arthur, Satya N. Poddar, and John Whalley, 1987. Taxation of Banking Services under a Consumption Type, Destination Basis VAT. National Tax Journal 40 (4), 547–554.
- Huizinga, H.,2002. A European VAT on financial services? Economic Policy, 17(35), 497–534.
- López-Laborda J. and Peña G.,2018. A NEW METHOD FOR APPLYING VAT TO FINANCIAL SERVICES. National Tax Journal, March 2018, 71 (1), 155–182.
- Mirrlees, J.,2011. Tax by design: The Mirrlees review. London: Institute for Fiscal Studies.
- OECD, 2014. Consumption Tax Trends 2014. OECD, Paris, France.
- Stiglitz Joseph E.,1997. Economics of the Public Sector. https://www.academia.edu/37552359/Economics_of_the_Public_Sector_Joseph_E_Stiglitz
- Балакина А.П., 2010. Налогообложение юридических лиц. – М. : ВГНА Минфина РФ, 2010. – 339 с.
- Вишневский, В.П., 2006. Налогообложение: теории, проблемы, решения. – Донецк: ДонНТУ НЭП НАН Украины. – 504 с.
- Гончаренко Л.И., 2004. Налогообложение организаций финансового сектора экономики. М. Финансы и статистика. С. 31.
- Иқтисодиёт ва молия вазирлиги, 2023. Давлат бюдетининг 2023 йил ижроси. https://www.imv.uz.
- Конончук И.А.,2018. Освобождение от налогообложения в условиях зачетного метода расчета ндс. ISSN 2078-5410 ЭКОНОМИКА И БАНКИ. 2018. № 1. ст.19-24.
- Лытяков А.В., 2014. Налог на добавленную стоимость и его совершенствование в условиях налогового администрирования в Российской Федерации. https://www.dissercat.com/content/nalog-na-dobavlennuyu-stoimost-i-ego-sovershenstvovanie-v-usloviyakh-nalogovogo-administriro.
- Майбуров И. и др., 2010. Налоги и налогообложение: учебник для вузов. 4-е изд.,перераб. и доп. – М. : Юнити, 2010. –559 с.
- Майбуров, И.А., 2011. Теория налогообложения. учебник для магистрантов, обучающихся по специальностям «Финансы и кредит», «Бухгалтерский учет, анализ и аудит». – М. : ЮНИТИ–ДАНА. – 591 с.
References
Barham, Vicky, Satya N. Poddar, and John Whalley, 1987. The Tax Treatment of Insurance under a Consumption Type, Destination Basis VAT. National Tax Journal 40 (2), 171–182.
Campio Group, 2024.https://www.campiogroup.com.
de Mooij Ruud and Swistak Artur, 2022. Value-Added Tax Continues to Expand. https://www.imf.org/en/Publications/fandd/issues/2022/03/b2b-value-added-tax-continues-to-expand.
EC, 2023. VAT GAP REPORT.
Edgar, Tim, 2001. Exempt Treatment of Financial Intermediation Services under a Value-Added Tax: An Assessment of Alternatives. Canadian Tax Journal 49 (5), 1133–1219.
Grubert, H., & Mackie, J. B.,2000. Must financial services be taxed under a consumption tax? National Tax Journal, 53(n.1), 23–40.
Hoffman, Lorey Arthur, Satya N. Poddar, and John Whalley, 1987. Taxation of Banking Services under a Consumption Type, Destination Basis VAT. National Tax Journal 40 (4), 547–554.
Huizinga, H.,2002. A European VAT on financial services? Economic Policy, 17(35), 497–534.
López-Laborda J. and Peña G.,2018. A NEW METHOD FOR APPLYING VAT TO FINANCIAL SERVICES. National Tax Journal, March 2018, 71 (1), 155–182.
Mirrlees, J.,2011. Tax by design: The Mirrlees review. London: Institute for Fiscal Studies.
OECD, 2014. Consumption Tax Trends 2014. OECD, Paris, France.
Stiglitz Joseph E.,1997. Economics of the Public Sector. https://www.academia.edu/37552359/Economics_of_the_Public_Sector_Joseph_E_Stiglitz
Балакина А.П., 2010. Налогообложение юридических лиц. – М. : ВГНА Минфина РФ, 2010. – 339 с.
Вишневский, В.П., 2006. Налогообложение: теории, проблемы, решения. – Донецк: ДонНТУ НЭП НАН Украины. – 504 с.
Гончаренко Л.И., 2004. Налогообложение организаций финансового сектора экономики. М. Финансы и статистика. С. 31.
Иқтисодиёт ва молия вазирлиги, 2023. Давлат бюдетининг 2023 йил ижроси. https://www.imv.uz.
Конончук И.А.,2018. Освобождение от налогообложения в условиях зачетного метода расчета ндс. ISSN 2078-5410 ЭКОНОМИКА И БАНКИ. 2018. № 1. ст.19-24.
Лытяков А.В., 2014. Налог на добавленную стоимость и его совершенствование в условиях налогового администрирования в Российской Федерации. https://www.dissercat.com/content/nalog-na-dobavlennuyu-stoimost-i-ego-sovershenstvovanie-v-usloviyakh-nalogovogo-administriro.
Майбуров И. и др., 2010. Налоги и налогообложение: учебник для вузов. 4-е изд.,перераб. и доп. – М. : Юнити, 2010. –559 с.
Майбуров, И.А., 2011. Теория налогообложения. учебник для магистрантов, обучающихся по специальностям «Финансы и кредит», «Бухгалтерский учет, анализ и аудит». – М. : ЮНИТИ–ДАНА. – 591 с.