The Ecosystem of VAT Administration in E-Commerce: Case of the Eastern Europe Countries

Abstract

Quarantine economic conditions put forward new demands to tax administration’s efficiency as a priority source of the EU financial resources. The relationship between fair, efficient, sustainable taxation and budget revenues’ adequacy to finance social and economic investment, innovation, and development needs is evident. Therefore, ensuring tax administration’s efficiency and effectiveness in any EU country is of theoretical and practical importance.The study aims to deepen the VAT administration’s theoretical and applied provisions in e-commerce operations in a global convergence of the national economic systems. The analysis of the state and forecast of the VAT mobilization in the EU countries’ e-commerce operations are presented. The research’s specific is to assess the VAT tax base’s future size in the context of changes in the EU tax legislation. According to the scientific literature analysis, in forecasting the studied tax, it is advisable to use econometric forecasting methods based on time series models.As the result of the study, the forecast volumes of the VAT base of Eastern Europe and the amount of approximate future tax revenues are presented. The obtained results confirm the relationship between the growth of e-commerce and VAT tax revenues under such transactions. It led to the presentation of the author’s vision of the VAT administration ecosystem for e-commerce transactions and the allocation of its functional entities.The directions on achieving the VAT mobilization’s maximum volumes following the EU tax legislation requirements in European integration and globalization were substantiated. The submitted conclusions are entitled to be used in tax administration processes to forecast other tax payments.

Regulatory policy on ensuring sustainability of tax revenues of EU-28 countries

“…The assessment of sustainability of tax revenues was carried out for 2010-2020. This approach ensures the completeness of the analysis and is characterized by the constancy of elements of the EU-28 countries (ABRAMOVA et al, 2021). Changes in tax policy in studied countries were rarely investigated on account of changes of the volumes of taxation levels.…”

Analytical View on the Sustainable Development of Tax and Customs Administration in the Context of Selected Groups of the Population of the Slovak Republic

“…The study [8] aims to deepen the theoretical and applied provisions of the VAT administration in e-commerce operations in a global convergence of the national economic systems. The analysis of the state and forecast of VAT mobilization in the EU countries' e-commerce operations are presented.…”

“…The obtained results confirm the relationship between the growth of e-commerce and VAT tax revenues under such transactions; the study presents author's vision of the VAT administration ecosystem for e-commerce transactions and the allocation of its functional entities. The directions on achieving the maximum volumes of VAT mobilization following the EU tax legislation requirements in European integration and globalization were substantiated, and the conclusions can be used in tax administration processes in the matters of forecasting other tax payments [8].…”

Determination and description of endogenous and exogenous factors of the financial services market development in the conditions of economic turbulence

“…Many scientific publications of well-known domestic and foreign scientists are devoted to the study of various aspects of regional development, including the development of the financial services market, namely: Abramova A. (2021), Badaruddin (2020), Bastič M. (2009), Berger H. (2018), The researchers' article (RACHIM et al, 2021) analyzes the impact of internal factors, local government interventions, external factors and policies of the Bank of Indonesia and the Financial Services Authority on profitability with external factors as variables in regional development banks in Indonesia.…”