№ 1/2021

№ 1/2021

Nauk. pr. NDFI 2021 (1): 51–64https://doi.org/10.33763/npndfi2021.01.051

TAX POLICY

KOSHCHUK Tetiana ¹, RAINOVA Larysa ²

¹SESE “The Academy of Financial Management”
OrcID ID : https://orcid.org/0000-0003-1013-4603
²SESE "The Academy of Financial Management"
OrcID ID : https://orcid.org/0000-0002-8275-3094

Impact of digitalization on development of the VAT taxation system

The article establishes that the development of e-commerce generates serious tax threats. The problem of VAT collection is exacerbated, as non-residents who carry out transactions on supplies of electronic services often fall outside the system of consumption taxation. VAT fraud also distorts competition and increases inequality in the distribution of tax burden. The OECD recommends for the countries to apply at the taxation of e-commerce the approach providing collection of VAT by the principle of country of destination including a reverse charge mechanism, which assigns obligations for payment the VAT of foreign supplier to the customer in the country of consumption. It has been found that the EU is reforming the VAT system on the following principles: tackling fraud; “One Stop Shop”, greater consistency, less red tape. The efforts of the European Commission are primarily aimed at modernizing the collection of VAT in the area of cross-border e-commerce in the B2C format, including more scope for the MOSS regime. It is concluded that in Ukraine, in order to start levying VAT from operations on supplies of electronic services to final consumers by a non-resident, it is necessary to solve the following problems: determination of potential benefits and costs from the introduction of such taxation; definition of the term “electronic services” for VAT purposes; registration of a non-resident as a VAT payer; identification of the recipient of services - the resident of Ukraine to determine the place of supply in B2C format; determination of the procedure for VAT payment; providing a non-resident - VAT payer with the opportunity to pay tax in foreign banks and submit tax reports in the electronic form; introduction of an additional procedure for verifying non-residents reporting.

Keywords:digitalization, electronic services, tax evasion, value added tax

JEL: H21, H22, H24, L86

Koshchuk T. . Impact of digitalization on development of the VAT taxation system / T. . Koshchuk, L. . RAINOVA // Наукові праці НДФІ. - 2021. - № 1. - C. 51-64.

Article original in Ukrainian (pp. 51 - 64)

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