+7 925 966 4690, 9am6pm (GMT+3), Monday – Friday
ИД «Финансы и кредит»

JOURNALS

  

FOR AUTHORS

  

SUBSCRIBE

    
International Accounting
 

European and Ukrainian experience in financial support to farming activities through fiscal instruments

Vol. 23, Iss. 9, SEPTEMBER 2020

Received: 14 November 2016

Received in revised form: 7 March 2017

Accepted: 31 March 2017

Available online: 15 September 2020

Subject Heading: Tax and taxation

JEL Classification: H21, H30, Q1, Q18

Pages: 1040–1063

https://doi.org/10.24891/ia.23.9.1040

Nepochatenko E.A. Uman National University of Horticulture, Uman, Ukraine
kolos2000@i.ua

ORCID id: not available

Prokopchuk E.T. Uman National University of Horticulture, Uman, Ukraine
pivotbi@mail.ru

ORCID id: not available

Guzar B.S. Uman National University of Horticulture, Uman, Ukraine
bohdan.um@mail.ru

ORCID id: not available

Subject. The article considers financial regulation through the use of tax mechanisms.
Objectives. The aim of the study is to evaluate European and Ukrainian practices of fiscal incentives for farming through fiscal instruments with VAT playing the key role.
Methods. In the study we employed economic and statistical research methods, like monographic, comparison, scientific generalization.
Results. Based on the analysis of VAT implementation on farmers in developed countries in Europe we substantiated the conclusion about its focus on simplifying the tax procedures and eliminating the negative impact on operations of economic entities. Special tax treatment (including VAT collection) is mainly used to streamline tax relations, taking into account the specifics of farming, rather than to improve the financial support to farms. We revealed that in the Ukrainian practice its main task is financial support to agricultural production.
Conclusions and Relevance. The experience of developed European countries on the use of special tax regimes and taxation procedures should serve as a model for Ukraine. Financial incentives for agricultural production development should be directly supported by the State, and special tax treatment and tax administration should be focused on streamlining tax relations in the region, based on the practice of developed European countries such as UK, Germany, Italy and France.

Keywords: fiscal stimulus, agricultural production, VAT, special tax treatment, reduced rate

References:

  1. Volkov D.B. [Problems of tax incentives for agricultural entities]. Nalogovaya politika i praktika = Tax Policy and Practice, 2010, no. 5, pp. 52–57. (In Russ.)
  2. Goncharenko G.A. [Efficiency of special tax regime for agricultural producers]. Vestnik Altaiskogo gosudarstvennogo agrarnogo universiteta = Bulletin of Altai State Agrarian University, 2010, no. 8, pp. 111–115. (In Russ.)
  3. Gorskii I.V. [Feasibility of stimulating role of tax concessions]. Finansovyi zhurnal = Financial Journal, 2013, no. 4, pp. 167–170. (In Russ.)
  4. Zaruk N.F. [Tax reforms in agriculture]. Ekonomika sel'skogo khozyaistva Rossii = Economics of Agriculture of Russia, 2006, no. 7, pp. 30–39. (In Russ.)
  5. Kudryashova E.V. [Excise tax: Some theory]. Nalogi = Taxes, 2014, no. 6, pp. 40–44. (In Russ.)
  6. Malkina M.Yu., Balakin R.V. [Assessing the relationship of risk and return of the tax system in Russian regions]. Ekonomika regiona = Economy of the Region, 2015, no. 3, pp. 241–255. (In Russ.)
  7. Pechenskaya M.A., Uskova T.V. [Inter-budgetary distribution of taxes in Russia: Concentration of powers or decentralization of management]. Ekonomika regiona = Economy of Region, 2016, vol. 12, no. 3, pp. 875–886. (In Russ.)
  8. Prokopchuk E.T. [Classification characteristics of modern tax systems]. Ekonomika: vchera, segodnya, zavtra = Ekonomy: Yesterday, Today, Tomorrow, 2015, no. 5, pp. 77–91. (In Russ.)
  9. Prokopchuk E.T. [Specifics of transformation of special tax regime of VAT collection in the sphere of agricultural production and processing]. Perspektivy nauki i obrazovaniya. = Prospects of Science and Education, 2014, no. 4, pp. 167–173. (In Russ.)
  10. P'yanova M.V. [Foreign experience in tax incentives for agricultural sector]. Nalogi i nalogooblozhenie = Taxes and Taxation, 2009, no. 8, pp. 62–64. (In Russ.)
  11. Sibiryakov N.A. [Value added tax: Basic conditions for application of VAT deductions]. Nalogi = Taxes, 2015, no. 2, pp. 8–14. (In Russ.)
  12. Tatarkin A.I., Maksimov A.D., Maksimov T.A. [Optimization of methodological support for application of tax benefits in regions: the Perm Krai case]. Ekonomika regiona = Economy of the Region, 2015, no. 1, pp. 197–213. (In Russ.)
  13. Тулуш Л.Д., Прокопчук Е.Т. Функціонування податку на додану вартість у сфері агропромислового виробництва : монографія. Киев: ННЦ ИАЭ, 2011, 280 p.
  14. Adam S., Browne J. A Survey of the UK Tax System. London, UK, Institute for Fiscal Studies, 2006. URL: Link
  15. Agha A., Haughton J. Designing VAT Systems: Some Efficiency Considerations. Review of Economics and Statistics, 1996, vol. 78, iss. 2, pp. 303–308.
  16. Arendonk H., Jansen S., Paardt R. VAT in an EU and International Perspective: Essays in Honor of Han Kogels. Amsterdam, IBFD, 2014, 359 p.
  17. Browne J., Roantree B. Office for Budget Responsibility of the UK. Economic and Fiscal Outlook. Norwich: TSO, 2014, March iss., pp. 127–135.
  18. Dowell S. History of Taxation and Taxes in England. Routledge, 2013, 1705 p.
  19. Aujean M. Harmonization of VAT in the EU: Back to the Future. EC Tax Review, 2012, vol. 21, iss. 3, pp. 134–143.
  20. Hill B., Cahill C. Taxation of European Farmers. EuroChoices, 2007, vol. 6, iss. 1, pp. 44–49.

View all articles of issue

 

ISSN 2311-9381 (Online)
ISSN 2073-5081 (Print)

Journal current issue

Vol. 27, Iss. 3
March 2024

Archive