THE EFFICIENCY OF THE VAT ADMINISTRATION: PROSPECTS FOR IMPLEMENTATION AND LIMITATIONS

The article considers the VAT administration procedure. The Value Added Tax in Ukraine is the most efficient tool in the mechanism of the public revenues formation. It is confirmed by the fact, that it is a tax on consumption, and the end user performs its payment. VAT is the most important thing to tax the shadow economy due to the imperfection of legal acts. In particular, it is shown in VAT evasion, illegal reimbursement of massive money sums from the state budget, a large number of abuses of taxpayers using incentives and shaping tax credit, which is quite a burden for the budget. The above administration and reform is a major goal of public authorities and local governments engaged in organizing, monitoring and control of this tax payment. The article analyzes VAT formation, possible conditions and budgetary compensation, their positive and negative consequences. In the process of excess VAT, an applicable tool is refunding. The budget refund is refunding of VAT negative value based on confirming the legality of the amounts of VAT reimbursement to audit taxpayer. It should be noted, that it is subject to compliance with applicable payer, all mandatory criteria and at least one of the criteria. The structure of state budget of Ukraine and the place of VAT is determined. A study of the VAT administration efficiency and the prospects for its implementation has been made. To improve the management of VAT, tax debt reduction and immobilization of funds business entities in payment must improve their tax planning at the macro level. Considering the importance and scope of VAT, the Government of Ukraine adopted amendments to the Tax Code of Ukraine by introducing from January 1, 2015, electronic administration system of value added tax, which will provide automatic registration. The order is determined by the Cabinet of Ministers of Ukraine. In addition, reduction of the shadow economy in the country and government spending on VAT administration are under consideration. The advantages of this system are also reducing pressure on the business, reducing the impact of human factors and corruption, simplifying tax returns. As to the direct administration, it will include the following: introducing the automatic account of VAT amounts paid in the context of taxpayers, providing free automatic opening accounts taxable in the bank, preparation of all tax invoices in the electronic form, as well as their registration in a single electronic register tax bills. Thus, for the tax bills registration, the taxpayer must have sufficient amount of the tax credit, confirmed in the register of tax invoices or payment of VAT for imports. For lack of the loan amounts, the taxpayer must own funds to replenish funds in the system of electronic tax administration. Registered tax bills will give the right to the tax credit, but on the basis of the tax return, according to the specified amount in it, or from the account of electronic tax administration one can pay to the budget, or VAT will be reimbursed from the budget to the current account.