International Accounting

Reform of VAT and the unified agricultural tax

Vol. 20, Iss. 17, SEPTEMBER 2017

Received: 23 January 2017

Received in revised form: 6 February 2017

Accepted: 20 February 2017

Available online: 20 September 2017

Subject Heading: Tax and taxation

JEL Classification: H21, H25, H30

Pages: 991–1003

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

Subject The article addresses specifics of taxation of agricultural producers, the tax burden and financial results, depending on tax regimes.
Objectives The purpose of the study is to analyze the level of taxation of agricultural producers.
Methods The paper employs general scientific approaches and methods.
Results I performed a comprehensive analysis of the tax system applied in the Russian agriculture, studied the role of VAT accounting as the main reason for difference in tax burden assessment. Agricultural organizations applying the unified agricultural tax have a higher tax burden as compared with those under the general tax regime. They also have a higher level of costs, since the VAT paid on the acquisition of resources is not refunded but is classified as the cost of production and sales. As a result, agricultural producers under special tax regimes are non-competitive as those under the general tax regime.
Conclusions Special tax regimes in the agricultural sector do not meet the goal to reduce the tax burden and create more favorable economic and financial conditions for agricultural commodity producers. It is crucial to change the Tax Code and harmonize tax regimes.

Keywords: general taxation system, unified agricultural tax, tax harmonization, value added tax, indirect tax


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