Subject. The article addresses instruments of tax incentives for science and innovation development. Objectives. The aim is to elaborate recommendations for improving the mechanism of taxation of value added created in the innovation sphere. Methods. We applied general scientific methods of research. Results. The paper identified impracticality of using value-added tax exemptions to reduce the tax burden on economic entities engaged in the innovation sector. The specific features of applying the offset mechanism in calculating value-added tax as an indirect tax lead to a lack of stimulating effect, if the exemption is granted at certain stages of the production cycle. In this case, the taxpayer allocates the "input" value-added tax to the cost of the produced goods, increasing production costs and the selling price of the goods. Conclusions. It appears more acceptable to reduce the tax rate on value-added tax for entities engaged in innovative activities. The greatest effect of introducing a preferential value-added tax rate can be achieved when it is utilized by all participants in the cycle of production and sale of innovative products. It should be ensured that all other elements of the tax remain unchanged.
Keywords: innovation, science, tax incentives, tax expenditures, value added tax
References:
Khabib M.D., Teplyakova M.Yu., Krasnov E.V. [The status of research funding in the Russian Federation at the modern stage]. Vestnik Universiteta, 2019, no. 5, pp. 151–158. (In Russ.) URL: Link
Medvedeva N.B. [Statistical survey of influence of science funding on the level of innovative development of economy of the Russian Federation]. Vestnik Universiteta, 2015, no. 8, pp. 191–197. URL: Link (In Russ.)
Filin S.A., Lisenker N.L., Anufriev K.O., Zhusipova E.E. [Increase in system effectiveness of the State institutes and institutes of civil society as condition of development of the Russian innovative system]. Ekonomika i upravlenie: problemy, resheniya = Economics and Management: Problems, Solutions, 2018, vol. 7, no. 12, pp. 50–57. (In Russ.)
Abashev A.O. [Value added tax: problems and ways of reforming]. Vestnik Tikhookeanskogo gosudarstvennogo universiteta = Bulletin of Pacific National University, 2019, no. 2, pp. 105–112. URL: Link (In Russ.)
Efremova E.A. [Value added tax - problems and their solutions]. Voprosy ekonomiki i prava = Economic and Law Issues, 2023, no. 186, pp. 58–62. (In Russ.) URL: Link
Velikorossov V.V., Filin S.A., Akulinin F.V. et al. [Commercialization of innovation in the organization: Methods and processes]. Ekonomika i upravlenie: problemy, resheniya = Economics and Management: Problems, Solutions, 2023, vol. 4, no. 1, pp. 4–11. (In Russ.) URL: Link
Chernov S.B., Zakharova A.V. [Tax policy of high-tech development as a factor of strengthening Russia's economic security in the context of anti-Russian sanctions]. Ekonomicheskie nauki = Economic Sciences, 2023, no. 1, pp. 246–252. (In Russ.) URL: Link
Chernov S.B., Zakharova A.V. [Institutional aspects of taxation: Economic security and the activities of an economic entity]. Ekonomicheskie nauki = Economic Sciences, 2021, no. 3, pp. 196–200. (In Russ.) URL: Link
Prokhorov Yu.N., Korchagin E.R., Filin S.A. [Structural development of innovation: Composition and relationships of the State system of management and monitoring of innovation in the economy]. Ekonomika i upravlenie: problemy, resheniya = Economics and Management: Problems, Solutions, 2022, vol. 2, no. 3, pp. 92–102. (In Russ.) URL: Link
Artemenko D.A., Bagautdinova I.V., Bannova K.A. et al. Arkhitektonika sovremennogo nalogooblozheniya potrebleniya: monografiya [Architectonics of modern consumption taxation: a monograph]. Moscow, Yuniti-Dana Publ., 2020, 399 p.
Sodnomova S.K., Leontyeva Yu.V., Mayburov I.A., Kireenko A.P. [Historical aspects of the effective use of tax instruments for the industrialization of the economy of the USSR]. Vestnik Ural'skogo federal'nogo universiteta. Seriya Ekonomika i upravlenie = Bulletin of Ural Federal University. Series Economics and Management, 2019, vol. 18, no. 2, pp. 291–312. (In Russ.) URL: Link
Feoktistova T.V. [The fundamental principles of convergence innovation and tax policy]. Ekonomika i predprinimatel'stvo = Journal of Economy and Entrepreneurship, 2017, no. 8, part 4, pp. 160–164. (In Russ.)
Bashkirova N.N., Vishnevskaya N.G., Goncharenko L.I. et al. Administrirovanie naloga na dobavlennuyu stoimost': problemy i puti resheniya: monografiya [Value added tax administration: Problems and solutions: a monograph]. Moscow, Dashkov i Ko Publ., 2007, 123 p.
Мorozova N.G., Korzovatykh Zh.M. [Innovative tax administration tools in Russia]. Vestnik Universiteta, 2022, no. 4, pp. 122–129. (In Russ.) URL: Link
