Specific Features of Counteracting VAT Evasion: Experience of Ukraine and Foreign Countries

Keywords: tax system, a tax, value added tax, evasion, counteraction.


The article is focused on determining specific features of counteracting VAT evasion in Ukraine and foreign countries. It has been found out that the presence of VAT in the tax system of any state is a prerequisite for such a state to become a member of the European Union and it is due to its broad tax base and more neutral impact on economic decision-making on investment and consumption issues. It has been noted that the joint search by the states for the ways to combat VAT evasion is due to the need to minimize the damage caused to the financial and economic interests of the state by such actions, to increase the efficiency of value added tax, to increase the competitiveness level of domestic producers, to stimulate priority economic activities in the state. The content of value added tax as an indirect tax in accordance with the provisions of scientific doctrine has been revealed. Specific features of legal and illegal (tax crime) types of VAT evasion have been studied. The list of the methods to evade value added tax in Ukraine and foreign countries has been provided. The specifics of general and special ways to counteract this action have been revealed. The emphasis has been placed on such methods of counteracting VAT evasion as enshrining legal liability for VAT evasion at the legislative level; exercising tax control over the entities that are registered as value added taxpayers; usage of electronic document management and other opportunities of the digital economy, which allows to identify risks in the activities of taxpayers during their initial registration, etc. It has been concluded that there is no unified approach to the implementation of counteraction to value added tax evasion by state-authorized agencies; and the emphasis has been placed on the feasibility of existence of a basic list of the methods to counteract value added tax evasion.


Download data is not yet available.

Author Biography

N. S. Horobets , Sumy State University

Doctor of Philosophy in Law.
Department of administrative, economic law and financial and economic security (lecturer).


Tovkun L.V., 2018. The place of value added tax in the tax system of Ukraine [Mistse podatku na dodanu vartist u podatkovii systemi Ukrainy]. Juridical Scientific and Electronic Journal, [online] No. 4, pp. 112-114. Available at http://lsej.org.ua/4_2018/31.pdf [Accessed 15 December 2020].

Shishkin R.N., 2012. Legal regulation of value added tax [Pravovoe regulirovanie naloga na dobavlennuyu stoimost`]. Moscow: Yurisprudentsiya.

Boreiko N.M. and Boreiko O.Yu., 2018. Experience of the fiscal authorities of the European Union member states in counteracting VAT evasion [Dosvid fiskalnykh orhaniv krain-chleniv Yevropeiskoho Soiuzu shchodo protydii ukhylenniu vid splaty podatku na dodanu vartist]. In: University of the State Fiscal Service of Ukraine et al. Fiscal policy in the conditions of macroeconomic stabilization [Fiskalna polityka v umovakh makroekonomichnoi stabilizatsii]. Irpin, 15-22 June. Irpin. Pp. 60-62.

Danilov N.V., 2008. Criminal liability for tax evasion from the organization [Ugolovnaya otvetstvennost` za uklonenie ot uplaty nalogov s organizatsii]. Ph.D. dissertation. University of the Ministry of Internal Affairs of the Russian Federation.

Maslak O.V. and Shvager O.A., 2019. Establishing the nature and causes of tax evasion as a factor in counteracting the erosion of the tax base and the withdrawal of profits from taxation [Vstanovlennia sutnosti ta prychyn ukhylennia vid splaty podatkiv yak faktor protydii rozmyvanniu podatkovoi bazy ta vyvedenniu prybutku z-pid opodatkuvannia]. Juridical Scientific and Electronic Journal, [online] No. 5, pp. 178-181. Available at http://www.lsej.org.ua/5_2019/44.pdf [Accessed 15 December 2020].

Bozin I.V., 2020. Typical schemes for evading the payment of value added tax and accounting and documentary sources in the process of identifying and proving tax crimes [Tipichnye skhemy ukloneniya ot uplaty naloga na dobavlennuyu stoimost` i uchetno-dokumental`nye istochniki v protsesse vyyavleniya i dokazyvaniya nalogovykh prestuplenii]. In: N. I. Lobachevsky Nizhny Novgorod State University et al. International and national trends and prospects for the development of forensic examination [Mezhdunarodnye i natsionalnye tendentsii i perspektivi razvitiya sudebnoi ekspertizy]. Nizhny Novgorod, 22 May. Nizhny Novgorod. Pp. 32-36.

Zemlyanskaya I.S., 2014. Global economic and legal trends to combat fraud and abuse in the payment of value added tax [Mirovye ekonomiko-pravovye tendentsii protivodeistviya moshennichestvu i zloupotrebleniyam pri uplate naloga na dobavlennuyu stoimost`]. Finansovaâ analitika: problemy i rešeniâ – Financial Analytics: Science and Experience, No. 27, pp. 49-57.

Kaikharov M.-E.S., 2016. Analysis of foreign experience in combating VAT evasion [Analiz zarubezhnogo opyta borbi s ukloneniem ot uplaty NDS]. Evrazijskij soûz učenyh, No. 12, pp. 159-160.

Glinov A.V., 2005. Administrative and legal regulation of tax planning in the Russian Federation [Administrativno-pravovoe regulirovanie nalogovogo planirovaniya v Rossiiskoi Federatsii]. Ph.D. dissertation. Russian State Tax Academy.

Bondarenko M.O., 2019. The law of regulation of the tax plan in Ukraine [Pravove rehuliuvannia podatkovoho planuvannia v Ukraini]. Ph.D. dissertation. Yaroslav Mudryi National Law University.

Stroiteleva V.A., 2020. Improvement of the VAT tax administration system in the Russian Federation [Sovershenstvovanie sistemy nalogovogo administrirovaniya NDS v Rossiiskoi Federatsii]. Ph.D. dissertation. Rostov State Economic University.

Borisichev A.A., 2015. Criminal and legal assessment of the evasion of the organization from the payment of value added tax [Ugolovno-pravovaya otsenka ukloneniya organizatsii ot uplaty naloga na dobavlennuyu stoimost`]. Ph.D. dissertation. National Research University «Higher School of Economics».

Zemlyanskaya I.S., 2014. Value Added Taxation: International Experience in Information Exchange and Counteraction to Tax Offenses [Nalogooblozhenie dobavlennoi stoimosti: mezhdunarodnyi opyt obmena informatsiei i protivodeistviya nalogovym pravonarusheniyam]. Meždunarodnyj buhgalterskij učet – International Accounting, No. 33, pp. 34-42.

Sazonov R., 2013. How to develop a European-style tax office, studied by Ukrainian tax authorities in Bavaria [Yak rozvyvaietsia podatkove vidomstvo yevropeiskoho zrazka, vyvchaly ukrainski podatkivtsi u Bavarii]. Visnyk podatkovoi sluzhby Ukrainy, No. 32, pp. 46-48.

Sanzharevska I.S. and Shapoval S.M. (eds), 2013. Economic analysis: a basic course for a tax analyst [Ekonomichnyi analiz: bazovyi kurs dlia podatkovoho analityka]. Kyiv: SVTs Mindokhodiv Ukrainy.

Laba M., 2014. Information component in the fiscal aspect of tax administration: Ukraine and foreign experience [Informatsiina skladova u fiskalnomu aspekti administruvannia podatkiv: Ukraina ta zarubizhnyi dosvid]. Ekonomika, No. 5, pp. 21-24.

How to Cite
Horobets , N. S. (2020) “Specific Features of Counteracting VAT Evasion: Experience of Ukraine and Foreign Countries”, Bulletin of Kharkiv National University of Internal Affairs, 91(4), pp. 121-129. doi: 10.32631/v.2020.4.11.
Administrative Law and Procedure; Financial Law