TAX POLICY

LUNINA Inna ¹

¹Institute for Economics and Forecasting of NAS of Ukraine
OrcID ID : https://orcid.org/0000-0003-3812-4802

Features and consequences of implementation of different forms of the sales tax

In the article advantages and disadvantages of different forms of the general turnover tax are defined due to peculiarities of definition of the tax base and the tax collection machinery. It is considered international experience of simultaneous application of VAT and sales tax, as well as Ukrainian experience of application of the value of sales index in collecting contributions to the State Innovation Fund. Comparative analysis of budget efficiency of VAT in Ukraine and OECD countries is conducted using indicators of VAT revenue to the budget, the share of VAT in total taxes and duties, and the efficiency coefficient. The results of empirical estimates of the consequences of using multiple forms of sales tax for enterprises of different economic activities, which are at varying stages of production, are presented in the article. It is proved the negative impact of the sales tax levied on all sales transactions of goods, including loss of competitiveness of domestic products, increased taxation of products with increasing number of links of the process chain, complications in tax accounting and auditing.

Keywords: general sales tax, value added tax, VAT efficiency ratio (VRR), cumulative effect.

JEL: H20, H21, H25, H87.

Lunina I. . Features and consequences of implementation of different forms of the sales tax / I. . Lunina // Фінанси України. - 2015. - № 6. - C. 15-28.