The article summarizes the institutional features of taxation of the aviation and space complex by its sub-sectors and individual types of economic activity. The principles of building a tax system for aircraft manufacturing entities, the content of their benefits from VAT, corporate income tax, and land tax are highlighted. The list of their transactions, which are exempt from VAT taxation and taxed at a zero rate, has been systematized. The conditions for exemption from the payment of income tax for aircraft manufacturing entities, the requirements for the targeted use of the released funds and the principles of state control over its legality have been determined. The tax system for aviation transport enterprises has been formalized, which includes benefits from VAT, excise taxes, as well as income tax under contracts of compulsory insurance of passenger transportation of civil aviation. Differences in VAT taxation of international and domestic transportation of passengers and baggage by air transport have been established. The list of its services, which are taxed at zero VAT rate, are exempt from VAT taxation and are not subject to VAT taxation, is defined. The reasons for the application of the excise tax rate without the application of the increasing coefficient for the import and production of aviation gasoline and fuel for jet engines have been clarified. The requirements for registration of tax benefits for transactions with excise goods in terms of the use of tax invoices, excise invoices, sales contracts, etc. are highlighted. Considered possible options for paying off a tax bill for a certain amount of excise tax. The experience of tax incentives for the implementation of the national infrastructural and transport project “Air Express” through the provision of VAT benefits has been systematized. It is substantiated by directions for improving the taxation of the aviation and space complex in terms of: equalization of the tax status of aircraft construction entities and manufacturers of space equipment, the application of a reduced VAT rate for all domestic air transportation, changes in the principles of state financial control of tax benefits based on an audit of the effectiveness of their use.
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