To the problem of value-added tax administration

Abstract

The article examines the digitalization of tax administration in the context of electronic value-added tax accounting as an important element of the modern Ukrainian tax system. The author analyzes the works of scholars who emphasize the importance of introducing digital technologies into the tax sphere and digital trends. The author emphasizes that this approach is logical since value-added tax is among the most important sources of state budget revenues. However, its administration remains challenging for many countries, including Ukraine. Introducing modern digital solutions for VAT accounting and control can increase the administration's transparency, reduce tax risks, and ensure the implementation of such principles of tax legislation as legality, equality, uniformity, convenience, and others. It has been proved that despite the introduction of online services for the administration of value-added tax in Ukraine, there have been numerous unjustified refusals by the controlling authorities to register tax invoices. In order to protect their rights and legitimate interests, taxpayers go to court. The author analyzes court decisions, the content of which indicates the formality of the actions of the controlling authorities, referring to the failure of the taxpayer to provide documents without any specifics. The author points out the gaps in the functioning of the tax risk management system and the need to improve the algorithms for verification and decision-making in the context of the development of the electronic VAT administration system. It is stated that despite the significant positive aspects of digitalization of tax administration in general, the electronic VAT administration system in Ukraine has significant shortcomings. This is evidenced by the large number of court disputes related to the refusal to register tax invoices due to unjustified suspensions of their registration. Court decisions often point to the formality of the actions of the controlling authorities, which refer to the failure of the taxpayer to provide documents without specification. This indicates gaps in the functioning of the tax risk management system and requires improvement of verification and decision-making algorithms in the context of the development of the electronic VAT administration system.