Importance The recent years of economic development are characterized by improving the tax system and indirect taxation being its important component. However, the mechanism of the latter has a lot of challenges that are a matter of considerable debate and scientific scrutiny. Objectives The aim is to review the evolution of the indirect taxation system in Ukraine in general, and VAT as the most common form of universal excise taxes in particular, to determine its role and place in the tax system, and highlight areas of adapting the national practice of indirect taxation to the European experience. Methods I employ economic and statistical methods, namely, comparison, monographic, graphical and tabular methods, scientific generalization to analyze the formation and development of the indirect taxation system in Ukraine. Results The paper defines the role of indirect taxes in the Ukrainian tax system and in the formation of the budget of Ukraine, offers areas of adapting the national practice of indirect taxation to the European experience. Conclusions Ukraine tends to gradually increase the share of indirect taxes in total tax revenues of the State. The share of VAT in total revenues for 2011–2015 is about 38%. This tax form has become an integration element in creation and development of European Economic Community. Thus, the use of foreign experience in the regulation of the national system of indirect taxation will contribute to economic growth stabilization and gradual integration into the European Union.
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