Taxation of exports and imports of services: Automation of accounting and audit of transactions
The article highlights the insufficient automation of this process, which requires additional time spent by users to process data and enter it into the information system. It is established that due to the complex mechanism of VAT taxation, many of the data required for proper accounting and taxatio...
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| Format: | Article |
| Language: | English |
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Lutsk National Technical University
2023-05-01
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| Series: | Економічний форум |
| Subjects: | |
| Online Access: | https://e-forum.com.ua/en/journals/tom-13-2-2023/opodatkuvannya-eksportu-ta-importu-poslug-avtomatizatsiya-obliku-ta-audit-operatsiy |
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| _version_ | 1825206159916662784 |
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| author | Іryna Zhurakovska Roman Sydorenko |
| author_facet | Іryna Zhurakovska Roman Sydorenko |
| author_sort | Іryna Zhurakovska |
| collection | DOAJ |
| description | The article highlights the insufficient automation of this process, which requires additional time spent by users to process data and enter it into the information system. It is established that due to the complex mechanism of VAT taxation, many of the data required for proper accounting and taxation are not reflected in accounting software at all, which makes accounting for such transactions "manual", and therefore more likely to be subject to errors. The TCU stipulates that taxation is affected by the type of services and the place of supply of services. For the export and import of services, it is proposed to approve a single directory of types of services, which will automatically select the tax rate depending on the conditions stipulated by the TCU. The use of such a directory in information systems will simplify the accounting of transactions and their control. This is especially relevant for the IT sector. For example, if website development services are provided, they are subject to VAT, while consulting on IT issues is not. The author proposes an algorithm for preparing information on transactions to verify their correct VAT taxation: identification of the service; determination of the places of registration of counterparties; determination of the place of service provision; determination of the date of service. At the first stage, the act of services rendered (invoice) is checked, the necessary details and content of the service are identified, and the applicable VAT rate is checked. At the second and third stages, the foreign trade agreements, the registration of the supplier and the buyer, and the actual place of service provision under the agreement are examined. The fourth stage involves checking the date of documents under the contract, payment dates, applicable exchange rates on the date of the transaction, calculation of exchange rate differences, and compliance with currency control in the settlement. Depending on the amount of transactions, controlled transactions are also subject to review. The developed algorithm for preparing information on transactions for their correct taxation and subsequent control can be automated within the most common information systems, as it involves the use of a single reference book and only a single additional requisite to the documents already in place in standard versions. The availability of such accounting will reduce the complexity of operations and will allow to ensure the correctness of its accounting and taxation at all stages of the accounting process at the beginning of the planning of the operation |
| format | Article |
| id | doaj-art-72a2e5ef712144458893abb500dcf9cc |
| institution | Kabale University |
| issn | 2308-8559 2415-8224 |
| language | English |
| publishDate | 2023-05-01 |
| publisher | Lutsk National Technical University |
| record_format | Article |
| series | Економічний форум |
| spelling | doaj-art-72a2e5ef712144458893abb500dcf9cc2025-02-07T13:24:16ZengLutsk National Technical UniversityЕкономічний форум2308-85592415-82242023-05-01132525910.36910/6775-2308-8559-2023-2-8Taxation of exports and imports of services: Automation of accounting and audit of transactionsІryna Zhurakovska0https://orcid.org/0000-0001-9803-5874Roman Sydorenko1https://orcid.org/0000-0003-1346-6486PhD in Economic Sciences, Associate ProfessorPhD in Economic Sciences, Associate ProfessorThe article highlights the insufficient automation of this process, which requires additional time spent by users to process data and enter it into the information system. It is established that due to the complex mechanism of VAT taxation, many of the data required for proper accounting and taxation are not reflected in accounting software at all, which makes accounting for such transactions "manual", and therefore more likely to be subject to errors. The TCU stipulates that taxation is affected by the type of services and the place of supply of services. For the export and import of services, it is proposed to approve a single directory of types of services, which will automatically select the tax rate depending on the conditions stipulated by the TCU. The use of such a directory in information systems will simplify the accounting of transactions and their control. This is especially relevant for the IT sector. For example, if website development services are provided, they are subject to VAT, while consulting on IT issues is not. The author proposes an algorithm for preparing information on transactions to verify their correct VAT taxation: identification of the service; determination of the places of registration of counterparties; determination of the place of service provision; determination of the date of service. At the first stage, the act of services rendered (invoice) is checked, the necessary details and content of the service are identified, and the applicable VAT rate is checked. At the second and third stages, the foreign trade agreements, the registration of the supplier and the buyer, and the actual place of service provision under the agreement are examined. The fourth stage involves checking the date of documents under the contract, payment dates, applicable exchange rates on the date of the transaction, calculation of exchange rate differences, and compliance with currency control in the settlement. Depending on the amount of transactions, controlled transactions are also subject to review. The developed algorithm for preparing information on transactions for their correct taxation and subsequent control can be automated within the most common information systems, as it involves the use of a single reference book and only a single additional requisite to the documents already in place in standard versions. The availability of such accounting will reduce the complexity of operations and will allow to ensure the correctness of its accounting and taxation at all stages of the accounting process at the beginning of the planning of the operationhttps://e-forum.com.ua/en/journals/tom-13-2-2023/opodatkuvannya-eksportu-ta-importu-poslug-avtomatizatsiya-obliku-ta-audit-operatsiyexport; import; foreign economic activity; service; accounting automation |
| spellingShingle | Іryna Zhurakovska Roman Sydorenko Taxation of exports and imports of services: Automation of accounting and audit of transactions Економічний форум export; import; foreign economic activity; service; accounting automation |
| title | Taxation of exports and imports of services: Automation of accounting and audit of transactions |
| title_full | Taxation of exports and imports of services: Automation of accounting and audit of transactions |
| title_fullStr | Taxation of exports and imports of services: Automation of accounting and audit of transactions |
| title_full_unstemmed | Taxation of exports and imports of services: Automation of accounting and audit of transactions |
| title_short | Taxation of exports and imports of services: Automation of accounting and audit of transactions |
| title_sort | taxation of exports and imports of services automation of accounting and audit of transactions |
| topic | export; import; foreign economic activity; service; accounting automation |
| url | https://e-forum.com.ua/en/journals/tom-13-2-2023/opodatkuvannya-eksportu-ta-importu-poslug-avtomatizatsiya-obliku-ta-audit-operatsiy |
| work_keys_str_mv | AT írynazhurakovska taxationofexportsandimportsofservicesautomationofaccountingandauditoftransactions AT romansydorenko taxationofexportsandimportsofservicesautomationofaccountingandauditoftransactions |