Management of Tax Payments Under the Definitive Value Added Tax Regime
Economics and Business 2018
Māris Jurušs, Ģirts Feldbergs

There is a large value added tax fraud in the European Union. The current value added tax system is universal as tax is applied to all parties involved in the chain transactions, thus creating a risk of tax losses if one of the parties involved in the chain transaction does not pay tax in good faith. There is the action plan to introduce the definitive value added tax to prevent tax fraud in intra-community transactions. However, in order to ensure normal value added tax administration in all member states, a number of measures are needed to be done. It is necessary to develop a mutual settlement mechanism in cases of intra-community transactions. The aim of this research is to develop a possible solution for the management of tax payments under the definitive value added tax regime. The results of the research show that to manage tax payments, several payment management systems can be used. However, as a solution, a special clearing system could be introduced. Quantitative research methods such as statistical methods were used in order to analyze the situation of tax fraud in EU and its main causes, as well as mathematical modeling methods to analyze the definitive VAT system and to calculate the balance between countries in an example for clearing mechanism.


Keywords
Clearing system, definitive tax principle, tax fraud, value added tax.
DOI
10.2478/eb-2018-0005
Hyperlink
https://www.degruyter.com/view/j/eb

Jurušs, M., Feldbergs, Ģ. Management of Tax Payments Under the Definitive Value Added Tax Regime. Economics and Business, 2018, 32, pp.65-73. ISSN 2256-0386. e-ISSN 2256-0394. Available from: doi:10.2478/eb-2018-0005

Publication language
English (en)
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