IDEAS home Printed from https://ideas.repec.org/a/vrs/ecobus/v32y2018i1p65-73n5.html
   My bibliography  Save this article

Management of Tax Payments Under the Definitive Value Added Tax Regime

Author

Listed:
  • Jurušs Māris

    (Riga Technical University, Riga, Latvia)

  • Feldbergs Ģirts

    (Riga Technical University, Riga, Latvia)

Abstract

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.

Suggested Citation

  • Jurušs Māris & Feldbergs Ģirts, 2018. "Management of Tax Payments Under the Definitive Value Added Tax Regime," Economics and Business, Sciendo, vol. 32(1), pages 65-73, April.
    • Handle: RePEc:vrs:ecobus:v:32:y:2018:i:1:p:65-73:n:5
    as

    Download full text from publisher

    File URL: https://www.degruyter.com/view/j/eb.2018.32.issue-1/eb-2018-0005/eb-2018-0005.xml?format=INT
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrs:ecobus:v:32:y:2018:i:1:p:65-73:n:5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.