Value Added Tax: Problems Affecting GDP

Abstract

Purpose. The article proposes to consider the impact of the tax system on the example of value added tax on the economic development of a country, in particular on gross domestic product based on an analysis of the problems of calculating this tax. Methodology. Analyzing the dynamics of VAT receipts to the budget, problems of its collection, reimbursement and refund of tax amounts from the budget, the existing method and procedure for calculating and paying, we propose an author’s method of calculating this tax, based on the formation of the tax base as the value added of the product, and excluding the already calculated and other direct and indirect taxes paid at various budget levels. Result. Value added tax, being one of the main budget-forming taxes, has an impact on the positive dynamics of GDP, but only due to an increase in the tax rate and, as a result, an increase in the prices of inventory items. The VAT tax base needs to be reformed and updated with the existing methodology. Conclusion. The author’s model of Nalogonomy proposed in early publications provides directions for improving the tax system, including value added tax, allows the tax system to perform not only fiscal and regulatory functions, and become fair to citizens of the country. Acting as a regulator of the redistribution of the benefits of society, this tax plays a huge role in the socio-economic development of the Russian Federation, being the basis for stable revenues to the federal budget, and a tool that, despite the crisis situations, forms the economic and legal equality of taxpayers.