Management of Tax Payments Under the Definitive Value Added Tax Regime
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...
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| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Riga Technical University Press
2018-04-01
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| Series: | Economics and Business |
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| Online Access: | https://doi.org/10.2478/eb-2018-0005 |
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| author | Jurušs Māris Feldbergs Ģirts |
| author_facet | Jurušs Māris Feldbergs Ģirts |
| author_sort | Jurušs Māris |
| collection | DOAJ |
| description | 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. |
| format | Article |
| id | doaj-art-7c2a8cd4347f4381a32d0e65900ce1f2 |
| institution | DOAJ |
| issn | 1407-7337 2256-0394 |
| language | English |
| publishDate | 2018-04-01 |
| publisher | Riga Technical University Press |
| record_format | Article |
| series | Economics and Business |
| spelling | doaj-art-7c2a8cd4347f4381a32d0e65900ce1f22025-08-20T02:56:33ZengRiga Technical University PressEconomics and Business1407-73372256-03942018-04-01321657310.2478/eb-2018-0005eb-2018-0005Management of Tax Payments Under the Definitive Value Added Tax RegimeJurušs Māris0Feldbergs Ģirts1Riga Technical University, Riga, LatviaRiga Technical University, Riga, LatviaThere 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.https://doi.org/10.2478/eb-2018-0005clearing systemdefinitive tax principletax fraudvalue added tax |
| spellingShingle | Jurušs Māris Feldbergs Ģirts Management of Tax Payments Under the Definitive Value Added Tax Regime Economics and Business clearing system definitive tax principle tax fraud value added tax |
| title | Management of Tax Payments Under the Definitive Value Added Tax Regime |
| title_full | Management of Tax Payments Under the Definitive Value Added Tax Regime |
| title_fullStr | Management of Tax Payments Under the Definitive Value Added Tax Regime |
| title_full_unstemmed | Management of Tax Payments Under the Definitive Value Added Tax Regime |
| title_short | Management of Tax Payments Under the Definitive Value Added Tax Regime |
| title_sort | management of tax payments under the definitive value added tax regime |
| topic | clearing system definitive tax principle tax fraud value added tax |
| url | https://doi.org/10.2478/eb-2018-0005 |
| work_keys_str_mv | AT jurussmaris managementoftaxpaymentsunderthedefinitivevalueaddedtaxregime AT feldbergsgirts managementoftaxpaymentsunderthedefinitivevalueaddedtaxregime |