Finance and Credit

VAT collectability: Methodological aspects

Vol. 23, Iss. 2, JANUARY 2017

PDF  Article PDF Version

Received: 15 November 2016

Received in revised form: 29 November 2016

Accepted: 13 December 2016

Available online: 17 January 2017

Subject Heading: FISCAL SYSTEM

JEL Classification: H25, H26, H30

Pages: 64-77

Davletshin T.G. OOO Burovye i Neftepromyslovye Nasosy (drilling and oilfield pumps), Kazan, Republic of Tatarstan, Russian Federation

Subject The article considers the methodological aspects of value added tax collectability.
Objectives The purpose is to analyze potential VAT collection to the budget.
Methods The study draws on general scientific approaches and methods.
Results I investigated disadvantages of Chapter 21 of the Russian Tax Code, which are the main causes of problems in VAT administration and payment. The analysis of potential VAT revenue shows that the consumption of natural persons and households makes the main contribution to tax revenues. The collection of VAT in Russia is high and close to one hundred percent. The paper also analyzes the efficiency of automated control system over VAT payment, its role in increasing the VAT collectability, and offers measures to enhance the system functioning.
Conclusions The methodology for VAT revenue forecasting based on the final consumption data provides comprehensive information on the state of affairs in VAT administration, and should become the main method of forecasting and planning VAT revenues to the Russian Federation budget.

Keywords: tax collectability, tax administration, potential tax revenues, value added, final consumption


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