INFLUENCE OF THE VAT RATE INCREASING ON THE DEVELOPMENT OF ENTREPRENEURSHIP AND INTER-BUDGET RELATIONSHIPS IN RUSSIA
Author(s): Suptelo Natalia Petrovna, Dashuta Evgeniya Fedorovna
Release: 2019-1 (28)
Keywords: Taxes, taxation, VAT, business, business, budget
Annotation: This article discusses the problem of increase in VAT from 2019 Managing the value added tax is an acute problem facing the tax authorities. The debt on VAT payments to the budget is growing every year. This is due to the rather complex mechanism of calculating the tax and the presence of a large number of regulations for its calculation and collection. The article reveals the peculiarities of this tax collection at the new rate, its impact on the development of entrepreneurship in Russia. The main purpose of this tax is the implementation of the fiscal function of the tax system. The forecast of the impact of VAT growth on the change in consumer demand, the price level and the functioning of business in different sectors of the Russian economy. The authors suggest the beginning of a new wave of international companies ‘ exit from the Russian market due to the increase in VAT. The increase in VAT will exacerbate competition between medium and large enterprises and small enterprises operating under the simplified tax system. It is summarized that the reform as a whole will have a negative impact on business income. The consequences of the change in VAT on the distribution of budget revenues between the Federal and local budgets are given. It is concluded that the change in VAT will not lead to the expansion of financial resources necessary for the development of local government. The question of finding more appropriate ways to redistribute budget funds between different levels of the consolidated budget is raised. The necessity and possibility to transfer powers and the right to dispose of VAT revenues to the regions are substantiated. This measure can strengthen competition between individual regions for attracting business, become an impetus to increase trade and to create better conditions for business.
Bibliography: Suptelo NA.PE., Dashuta EV.FE. INFLUENCE OF THE VAT RATE INCREASING ON THE DEVELOPMENT OF ENTREPRENEURSHIP AND INTER-BUDGET RELATIONSHIPS IN RUSSIA // Economics and Management. – 2019. – № 1 (28). – С. 66-74. doi: 10.21777/2587-554X-2019-1-66-74