Oksana M. Garkushenko, Natalia V. Filippova, 75_04
Tuesday, 30 May 2017 05:14 | Author: ??????????? ?.?. | 
Oksana M. Garkushenko
PhD in Economics, the Institute of the Economy of Industry of the NAS of Ukraine.
Address: 03680, Ukraine, MSP, Kyiv, 2 Gelabov Str.
Tel.: 38 050 474 35 26. E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
Natalia V. Filippova
the Institute of the Economy of Industry of the NAS of Ukraine.
Address: 03680, Ukraine, MSP, Kyiv, 2 Gelabov Str.
Tel.: 38 050 630 56 97. E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
Directions of VAT rates harmonization to European ones: issues and challenges
Section: Macroeconomic and regional problems of industrial development
Ekon. promisl. 2016, 75(3): 80-89
https://doi.org/10.15407/econindustry2016.03.080
Language: Ukrainian
Keywords: VAT harmonization; standard rate; reduced rate; effective rate; C-efficiency.
| Full text (PDF)
References
Bénassy-Quéré, A., & Trannoy, A., Wolff G. (2014, July). Tax harmonization in Europe: moving forvard. Les notes du conseil d’analyse économique, 14.
Bikas, E., & Andruskaite, E. (2013). Factors affecting value added tax revenue. European Scientific Journal, 1, 41-49.
Caldwell, J. (2000). The Value-Added Tax: A New Tax System for the United States. Arlington, VA: Vista Research Corporation, 251 p.
Cottarelli, C. (2011). Revenue Mobilization in Developing Countries. Washington, DC: IMF, Fiscal Affairs Department, 85 ?.
Council of the European Commission (2006). Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax. Official Journal of the European Union, 11 December, L347-L347.
European Community (1967). Directive First Council 67/227/EEC of 11 April 1967 on the harmonisation of legislation of Member States concerning turnover taxes. Official Journal, 071, 1301-1303.
European Community (1977). Directive Sixth Council 77/388/EEC of 17 May 1977 on the harmonization of the laws of the Member States relating to turnover taxes-Common system of value added tax: uniform basis of assessment. Official Journal, Vol. 145, No 13.6.
Ebrill, L., Keen, M., Bodin, J-P., & Summers, V. (2001). The modern VAT. Washington, DC: International Monetary Fund, 241 p.
European Commission (2015). VAT Rates Applied in the Member states of the European Union: Situation at 1st January 2015. Retrieved from http://ec.europa.eu/taxation_customs/resources/documents/taxation/vat/how_vat_works/rates/vat_rates_en.pdf.
European Commission (2012). Tax reforms in EU Member States. Tax policy challenges for economic growth and fiscal sustainability 2012. Luxembourg: Publications Office of the European Union.
Frenkel, J.A., Razin, A., & Sadka, E. (1991). International taxation in an integrated world. Cambridge, Massachusetts: MIT Press.
Hellerstein, W., & Gillis, T.H. (2010). The VAT in the European Union. Tax Analysts, 26, 461-471.
Institute for Advanced Studies, CPB Netherlands Bureau for Economic Policy Analysis (2013). A study on the economic effects of the current VAT rates structure: Final Report TAXUD/2012/DE/323. Retrieved from http://ec.europa.eu/taxation_customs/resources/documents/common/publications/studies/vat_rates_structure_final_report.pdf.
Keen, M. (2013). The anatomy of the VAT. International Monetary Fund working paper, May, ? WP/13/111.
Mathis, A. (2004). VAT indicators. Taxation papers. April. Working paper No 2.
OECD, Committee on Fiscal Affairs (2015). International VAT/GST guidelines. Draft commentary on the international VAT neutrality guidelines. Paris: OECD Publishing.
Sinn, H.-W. (1990). Tax harmonization and tax competition in Europe. European economic review, 34, 489-504. DOI: http://dx.doi.org/10.1016/0014-2921(90)90122-F.
Arendok, H., & Jansen, S. (2011). VAT in an EU and International Perspectives. Netherlands. Amsterdam: IBFD.
Vlasyuk, O.S. (2013). The shadow economy and its impact on the security of the public finances sector of Ukraine. Finansy Ukrayiny, 6, 18-25 [in Ukrainian].
Dubovik, O.E. (2014). Tax transformations of Ukraine in the context of integration into the world economic space. Podatky ta finansove pravo, 3, 307-311 [in Ukrainian].
Kulay, A.V. (2015). Mechanisms and the state of harmonization of indirect taxation in EU. Finansy Ukrayiny, 7, 98-114 [in Ukrainian].
News.dtkt (2016). New season of tax wars. Will the Council change the VAT reimbursement scheme. Retrieved from https://news.dtkt.ua/ua/taxation/pdv/37965 [in Ukrainian].
Verkhovna Rada Ukrayiny (2010). The Tax Code of Ukraine ? 2755-VI of 02 December 2010. Vidomosti Verkhovnoyi Rady Ukrayiny, 13-14/15-16/17, Art. 112 [in Ukrainian].
Verkhovna Rada Ukrayiny (2014). The Association Agreement between Ukraine, on the one hand, and the European Union, the European Atomic Energy Community and their Member States, on the other hand. Retrieved from http://zakon4.rada.gov.ua/laws/show/984_011/page [in Ukrainian].
PhD in Economics, the Institute of the Economy of Industry of the NAS of Ukraine.
Address: 03680, Ukraine, MSP, Kyiv, 2 Gelabov Str.
Tel.: 38 050 474 35 26. E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
Natalia V. Filippova
the Institute of the Economy of Industry of the NAS of Ukraine.
Address: 03680, Ukraine, MSP, Kyiv, 2 Gelabov Str.
Tel.: 38 050 630 56 97. E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
Directions of VAT rates harmonization to European ones: issues and challenges
Section: Macroeconomic and regional problems of industrial development
Ekon. promisl. 2016, 75(3): 80-89
https://doi.org/10.15407/econindustry2016.03.080
Language: Ukrainian
Abstract: Value added tax has proved itself as quite simple and effective fiscal instrument, implementation of which simplifies trade relations between member countries of international associations and helps to decrease the scope of tax frauds in international trade. However, increasing of its efficiency demands the harmonization of the tax by Member States and countries willing to enter such unions. But this task is complicated due to the fact that VAT harmonization within EU is not finished yet.In the case of VAT it is necessary to clearly distinguish what tax rate should be harmonized: standard, reduced or directions of VAT harmonization can be pointed out by calculation of an effective rate. In addition, as long as for now there is significant difference between legislation and practice in the EU the harmonization of VAT towards EU needs clarification in terms of how this process will take place: according to the legislative norms or the Member States practice. Considering the above, European VAT legislation and practical implementation of this tax in the EU have been analysed in the paper. On this basis the recommendations and proposals for the harmonization of the standard, reduced, and effective VAT rates in Ukraine have been developed.Also by calculating of C-effectiveness coefficient and comparing results of the calculation with the European ones we have found that in Ukraine there are problems with tax compliance, VAT administration and the usage of the broad tax base, to which reduced VAT rates are applied. These problems are also in need of a solution that can be a perspective direction for further researches.
Keywords: VAT harmonization; standard rate; reduced rate; effective rate; C-efficiency.
| Full text (PDF)
References
Bénassy-Quéré, A., & Trannoy, A., Wolff G. (2014, July). Tax harmonization in Europe: moving forvard. Les notes du conseil d’analyse économique, 14.
Bikas, E., & Andruskaite, E. (2013). Factors affecting value added tax revenue. European Scientific Journal, 1, 41-49.
Caldwell, J. (2000). The Value-Added Tax: A New Tax System for the United States. Arlington, VA: Vista Research Corporation, 251 p.
Cottarelli, C. (2011). Revenue Mobilization in Developing Countries. Washington, DC: IMF, Fiscal Affairs Department, 85 ?.
Council of the European Commission (2006). Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax. Official Journal of the European Union, 11 December, L347-L347.
European Community (1967). Directive First Council 67/227/EEC of 11 April 1967 on the harmonisation of legislation of Member States concerning turnover taxes. Official Journal, 071, 1301-1303.
European Community (1977). Directive Sixth Council 77/388/EEC of 17 May 1977 on the harmonization of the laws of the Member States relating to turnover taxes-Common system of value added tax: uniform basis of assessment. Official Journal, Vol. 145, No 13.6.
Ebrill, L., Keen, M., Bodin, J-P., & Summers, V. (2001). The modern VAT. Washington, DC: International Monetary Fund, 241 p.
European Commission (2015). VAT Rates Applied in the Member states of the European Union: Situation at 1st January 2015. Retrieved from http://ec.europa.eu/taxation_customs/resources/documents/taxation/vat/how_vat_works/rates/vat_rates_en.pdf.
European Commission (2012). Tax reforms in EU Member States. Tax policy challenges for economic growth and fiscal sustainability 2012. Luxembourg: Publications Office of the European Union.
Frenkel, J.A., Razin, A., & Sadka, E. (1991). International taxation in an integrated world. Cambridge, Massachusetts: MIT Press.
Hellerstein, W., & Gillis, T.H. (2010). The VAT in the European Union. Tax Analysts, 26, 461-471.
Institute for Advanced Studies, CPB Netherlands Bureau for Economic Policy Analysis (2013). A study on the economic effects of the current VAT rates structure: Final Report TAXUD/2012/DE/323. Retrieved from http://ec.europa.eu/taxation_customs/resources/documents/common/publications/studies/vat_rates_structure_final_report.pdf.
Keen, M. (2013). The anatomy of the VAT. International Monetary Fund working paper, May, ? WP/13/111.
Mathis, A. (2004). VAT indicators. Taxation papers. April. Working paper No 2.
OECD, Committee on Fiscal Affairs (2015). International VAT/GST guidelines. Draft commentary on the international VAT neutrality guidelines. Paris: OECD Publishing.
Sinn, H.-W. (1990). Tax harmonization and tax competition in Europe. European economic review, 34, 489-504. DOI: http://dx.doi.org/10.1016/0014-2921(90)90122-F.
Arendok, H., & Jansen, S. (2011). VAT in an EU and International Perspectives. Netherlands. Amsterdam: IBFD.
Vlasyuk, O.S. (2013). The shadow economy and its impact on the security of the public finances sector of Ukraine. Finansy Ukrayiny, 6, 18-25 [in Ukrainian].
Dubovik, O.E. (2014). Tax transformations of Ukraine in the context of integration into the world economic space. Podatky ta finansove pravo, 3, 307-311 [in Ukrainian].
Kulay, A.V. (2015). Mechanisms and the state of harmonization of indirect taxation in EU. Finansy Ukrayiny, 7, 98-114 [in Ukrainian].
News.dtkt (2016). New season of tax wars. Will the Council change the VAT reimbursement scheme. Retrieved from https://news.dtkt.ua/ua/taxation/pdv/37965 [in Ukrainian].
Verkhovna Rada Ukrayiny (2010). The Tax Code of Ukraine ? 2755-VI of 02 December 2010. Vidomosti Verkhovnoyi Rady Ukrayiny, 13-14/15-16/17, Art. 112 [in Ukrainian].
Verkhovna Rada Ukrayiny (2014). The Association Agreement between Ukraine, on the one hand, and the European Union, the European Atomic Energy Community and their Member States, on the other hand. Retrieved from http://zakon4.rada.gov.ua/laws/show/984_011/page [in Ukrainian].
