Lesko M. Value added tax and its influence on economic activity of the subjects of entrepreneurship

Economic essence of the value added tax and its influence on economic activity of the subjects of entrepreneurship have been revealed. The research into the formation of incoming VAT, tax credit, tax liability and the tax, payable to the budget, has been carried out. The influence of the value added tax on the results of economic activity of the subjects of entrepreneurship has been analyzed. Tax base and tax rates are suggested to be changed to mitigate the adverse influence of the VAT on the economic activity of the subjects of entrepreneurship. The notion of "incoming value added tax" has been clarified in the thesis. Incoming value added tax is the tax on the acquired goods (work, services), during the payment of which, the immobilization of VAT payer's funds takes place. The ways of speeding up the payment of VAT on realized production by the means of economic stimulation of the decrease of debtors have been developed. Different sources of VAT reimbursement (budget, unit cost, tax liabilities) have been suggested to ensure timely settlement of tax credit. The model of optimization of tax payment form VAT has been worked out. The suggestions to decrease tax burden on the subjects of the entrepreneurship - tax-payers on the basis of determination of limits on tax liability and tax credit have been made. Differentiated value added tax rates depending on the types of manufactured production (work, services) have been suggested to be set on the basis of the research into the formation of profit and profitability rate. It will enable to extend tax base by the means of abolishing tax allowances and simultaneous decreasing of VAT tax rate as a compensatory means of increased tax pressure. Economic and mathematical model of tax payers' liability dependence on incoming VAT has been worked out.