Economic

THE ROLE OF VALUE ADDED TAX AND LEVY

Imanbayev T.B.

Magistrant of the Kazakh Academy of Finance and Economic

Baluanov. J.K.

PhD in Economics the Kazakh Academy of Finance and Economic

Value added tax (VAT) is a part of the contributions to the budget value of taxable sales turnover, added in the process of production and circulation of goods (works, services), as well as contributions to import goods into the territory of the Republic of Kazakhstan.

VAT payable to the tax on taxable turnover, defined as the difference between the amount of VAT charged for the sale of goods (works, services) and the amount of VAT payable for goods (works, services), ie the difference between the purchased and sold VAT.One of the first compulsory payments, the introduction of the tax in December 1991, was the value added tax (VAT). Introduction of VAT is a logical step and the key to improving the tax system of Kazakhstan.

Over the years, he firmly established in the tax system in Kazakhstan. Currently VAT - one of the major taxes. The basis of his collection, as the name suggests, is the value added of all stages of production and distribution of goods. This tax is traditionally classified as universal indirect taxes in the form of original premiums charged by including in the price of goods, carrying the main burden of taxation on the final consumers of products and services. 

VAT as the most significant indirect tax has two complementary functions: fiscal and regulatory. The first (main), in particular, is to mobilize significant revenues from this tax to the budget at the expense of ease of collection and sustainable base of taxation. In turn, the regulating function is shown to stimulate capital formation and strengthening of control over terms of promoting products and their quality. 

As you know, the VAT is one of the most important taxes paid by enterprises and organizations. During the existence of the value added tax operating mechanism of calculation and collection has undergone significant changes. Questions calculation and payment attract attention of many local economists and widely discussed in the periodical press.

VAT as the most significant indirect tax has two complementary functions: fiscal and regulatory. The first (main), in particular, is to mobilize significant revenues from this tax to the budget at the expense of ease of collection and sustainable base of taxation. In turn, the control function is shown to stimulate capital formation and strengthening of control over terms of promoting products and their quality.Under the Treaty of October 6, 2007, signed in the capital of the Republic of Tajikistan - Dushanbe, was established Customs Union (CU).Single EurAsEC Customs Union at the moment is a combination of trade and economic relations between the three countries: Russia, Belarus and Kazakhstan.This organization EurAsEC Customs Union was to create a single customs territory, consisting of several states where canceled all customs duties for the products in between. Within the limits of the customs union has a common customs tariff and uniform requirements for regulation of trade relations with other countries.The changes in the customs legislation, particularly with regard to customs duties on a number of imports, causing the society to interpretation essence goals of the Customs Union.

Opposition parties and movements indicated a negative perception of Kazakhstan's accession to the Customs Union, and in many speeches and statements noticeable tendency to present the ongoing process of economic integration as a partial loss of sovereignty of our country.In reality, the decision on the establishment of the Customs Union, adopted by the heads of states of the Eurasian Economic Community in August 2006, is aimed at creating a more favorable environment for economic development of the Community and the CIS. Customs union, by definition, is a higher level of economic integration, and, of course, that the Union is a transfer of national powers of the state, forming the Customs Union, in specific areas of trade regulation.Treaty on the Customs Union Commission, signed by the heads of Kazakhstan, Russia and Belarus in October 2007, provides for a unified standing regulatory body - the Commission of the Customs Union, responsible for implementing the decisions of the supreme body of the Customs Union - EurAsEC Interstate Council.In the member countries of the Customs Union are different rates of value added tax, in Kazakhstan - 12%, Russia 18%, Belarus - 20%, which significantly complicates the export of Kazakh businessmen (Diagram 1).

Diagram 1. VAT rates in the Customs Union.

The Treaty provides that the decisions taken by the Commission, will be binding on enforcement in the territories of the Parties, which is aimed at improving the functioning of the Customs Union.[2].

As President Nursultan Nazarbayev in his address to the nation, "New Decade - New Economic Growth - New Opportunities for Kazakhstan", the creation of the Customs Union - a breakthrough for all of Kazakhstan integration initiatives. To ensure compliance with decisions of the Commission of the Customs Union in Kazakhstan, the Constitutional Council in November 2009, adopted a normative judgment that the decision of the Commission, as a general rule, take precedence over national laws and can be applied directly.

Customs union involves, in addition to the duty-free trade between the application of a single trade policy towards third countries outside the Customs Union. The Customs Union is: a unified customs tariff policy, which includes the common customs tariff, non-tariff measures uniform, unified customs legislation.

The main element of the customs and tariff regulation of the Customs Union is the common customs tariff, which came into force on 1 January 2010.

It should be noted that by the time of the creation of the Customs Union with Belarus, Kazakhstan and Russia have common duties for about 40 percent - is about 4500 codes. That is, the fee for a number of items of goods imported from third countries, were similar in the three countries. Therefore, it was necessary to unify around 60 per cent customs duty. In this case, the government of Kazakhstan, Belarus and Russia the following criteria: the presence of its own production, the structure of imports. In the course of this work on a regular basis, consult with representatives of local business on changing rates of import customs duties.[3].

According to the Agreement on the export of goods from the territory of one state - member of a customs union on the territory of another country - a member of the customs union applies to "zero" rate of VAT, subject matter of record exports. In this case, VAT is charged on such goods in a foreign country - a member of the customs union on their importation.

The list of documents to be submitted to the tax authorities to confirm the validity of the zero rate of VAT is set item 2 of article. 1 of the Protocol. These documents must be submitted to the tax authorities within 180 days from the date of shipment. If you are not providing the relevant documents within the specified time the tax is paid at 18% for the tax period, which accounts for the date of shipment. In this case, under the date of shipment of the goods means the first date of the time of the primary accounting document.

In the case of the taxpayer of the relevant documents, in the later period after 180 days, the amount previously paid VAT is deductible

It is also necessary to note that the publicly available information on the Internet is known that the tax authorities are trying by all means to refuse to refund the VAT from the budget, so we need to be prepared for tax claims and related defense costs in a tax dispute on VAT refunds. Here are the main claims, which are often used for tax motivation failure to refund VAT:

The exporter can not apply a zero rate of VAT, therefore, to accept tax deductible, unless the proceeds of the transaction.

Taxes is important to establish a place where they work or services provided. State - Customs Union members decided that the performance of work, rendering of services the company will have to pay VAT in the State in which such services and activities are implemented. If the place of supply of services will be Russia, VAT will be calculated according to the rules of Articles[1].

This arrangement of the customs union is enshrined in paragraph 2 of the Protocol of 11.12.2009 "On the procedure of indirect taxes on the performance of work, rendering of services in the Customs Union"

Define the place of supply of services and works

Place of implementation of works and services, depending on the type of the latter can be determined by the location of the property, the buyer, the artist, as well as the place of delivery and the implementation of major works (services).

To confirm the place of supply will be required:

- A contract for work or services;

- Documents confirming the performance of work, rendering of services;

- Other documents required by the legislation of the Customs Union (Article 3 of the Protocol).

Consider the place of supply rules for setting details.

The location of the property. The place of supply of works and services related to real estate, will be the area where this property is actually located. In practice, this rule is applied in construction, repair, restoration, and also works on gardening.

By the way, the same way define the place of implementation services for renting and hiring of immovable property. For example, the Kazakh company is building a warehouse in Moscow. The warehouse is in Russia, so the work of this company are subject to VAT at rates of the Tax Code.

The location of the movable property. With movable property is the opposite. The place of supply and services in this case will be the territory of the country where the property is located physically (podp.2 paragraph 1 of Art. 3 of the Protocol). This rule is applied in practice to work and services for installation, assembly, processing equipment.

Summing up the work done - you can say the following:

This paper deals with the VAT - one of the most complex in terms of taxes.

He has a huge fiscal importance, being a significant source of new revenue.

At the same time, the value added tax performs a regulatory function by influencing the pricing mechanism.

The value of VAT for the domestic economy is difficult to overestimate. VAT applies to state taxes and is valid on the entire territory of Kazakhstan.

SUMMARY

The concept of the role of the value-added tax in the Customs Union. Written about the benefits of the customs Union. Written about the benefits of the customs union and the problems of value added.

List of sources used

1. Code of the Republic of Kazakhstan "On taxes and other obligatory payments to the budget

2. Code of the Republic of Kazakhstan "On Customs Affairs in the Republic of Kazakhstan"

3. B.Nurakhmetov // Questions and answers on the legislation of the Customs Union // seven establishments