ACCOUNT FOR AND TAXATION OF ADDED VALUE

Abstract

The value-added tax (VAT) is a significant component of Ukraine’s taxation system. Its functioning is related to many problems of the domestic taxation system and tax payers. The shortcomings in the functioning of VAT are so essential that the experts put sometimes the question about its expediency. The extreme complexity of a calculation of the sum of VAT paid to the budget, representation in the accounting, double taxation, immobilization of funds of an enterprise, and the removal of money from the budget through VAT by means of corruption schemes compose the list of problems, which is far from to be complete.
The authors substantiate the expediency to accumulate the information about the added value in the system of accounting and the representation of the accumulated information in records of an enterprise. The basic components of the added value and the order of its distribution are given schematically, which helps the proper perception of this information in subsequent studies.
In view of such main shortcoming of VAT as its reversible character, it is proposed to replace two taxes – VAT and the tax on profits – by VAT, but the order of the definition of a taxation object must be different from the current one. The principal distinction of authors’ propositions consists in the absence of the reversible character of VAT