VAT ADMINISTRATION SYSTEM IN UKRAINE: ADAPTATION TO THE REQUIREMENTS OF EUROPEAN LEGISLATION

Abstract

The article overviewed the fundamental problems of the development and reformation of VAT in the EU Member States, the principles and procedure for calculating VAT, as well as the issues of harmonization of VAT according to the EU's requirements. The economic nature of the VAT, its fiscal nature and the shortcomings, features and rates of VAT in the tax systems of Ukraine and European countries are revealed. The main aspects of improving VAT according to the EU requirements are outlined, as well as changes in VAT rates and tax breaks that have been transformed in response to economic turmoil or political instability. The VAT legislation of the Member States of the EU and Ukraine, the features of the application of standard and reduced tax rates are analyzed. The application of VAT rates to certain types of goods and services is compared. Emphasis is placed on the need to take into account the experience of European countries' in regulating the mechanism of VAT collection in Ukraine. Methodologically research is based on the inductive method as a way of obtaining conclusions based on analysis of existing statistical material.Key words: indirect taxes; VAT Tax Code of Ukraine; EU legislation; reform.