Simplified taxation system in Ukraine in the conditions of digital transformation

Abstract

In the conditions of the economic crisis that arose during the martial law in Ukraine, introduced by the Decree of the President of Ukraine dated February 24, 2022 № 64/2022, there is an urgent need to reformat the current domestic taxation system, aimed at the maximum simplification and minimization of administrative procedures, related to the calculation and payment of taxes, control over compliance with tax legislation, as well as the optimization of state expenditures for the specified purposes through the introduction of a real simplified system of taxation, accounting and reporting throughout the territory of Ukraine for all legal and physical entities.
 The authors of the article set a goal, based on the idea of a simple, understandable and effective in administration of a simplified taxation system, to propose further directions for the legal regulation of step-by-step actions of the state during the transition to a digital domestic taxation system in the conditions of the implementation of a real tax reform.
 Given the insignificant share of the single tax in the revenues of the consolidated budget of Ukraine (about 1.7-3%) there is no need to increase the tax burden on its payers, which has been observed in recent years in connection with the adoption of numerous legislative acts aimed at strengthening regulatory mechanisms of taxation of entities that have chosen a simplified system.
 The article proposes specific directions for the legal regulation of processes aimed at the legalization of income through tax amnesty, the gradual rejection of the circulation of cash and the transition exclusively to cashless electronic transactions, the prohibition of barter transactions - for implementation in the conditions of digital transformation throughout the country for everyone, both citizens and business entities of the simplified taxation system in the form of a transaction tax.
 According to the data presented in the article, the taxation of transactions at the rate of 1.6% would allow to ensure the annual volume of budget revenues planned for 2022 while minimizing administrative procedures and expenses for them. The adoption of the law on the transaction tax with the simultaneous repeal of a number of legislative and regulatory acts on taxation is an important step for the implementation of real tax reform.