METAMORPHOSIS OF ADMINISTERING VAT IN THE CONTEXT OF IMPROVING THE ECONOMIC INSTRUMENTS OF COUNTERACTING THE HYBRID WAR
METAMORPHOSIS OF ADMINISTERING VAT IN THE CONTEXT OF IMPROVING THE ECONOMIC INSTRUMENTS OF COUNTERACTING THE HYBRID WAR

Summary/Abstract: Despite the existence of state programs and privileges in Ukraine aimed at supporting veterans, there are a number of obstacles to their implementation. The current state of legislative regulation of charity in Ukraine does not ensure access of people to charitable assistance and does not ensure observance of the right to social protection and support, health care, safe life and health, etc. The purpose of this article is to highlight the peculiarities of taxation by value added tax the transactions for provision (obtaining) of charitable assistance by participants of Anti-Terrorist Operations (Joint Forces Operation), as well as developing directions for improving VAT taxation. The low level of business stimulation for volunteering or targeted charity reflects the lack of such activity at some of Ukraine's largest enterprises. An analysis of the status of provision by material assistance to combatants and members of their families pointed out the need to develop new directions of business stimulation or increase the number of state programs to support citizens who protect the territorial integrity of Ukraine. After examining the norms of the Tax Code of Ukraine regarding the taxation of VAT transactions, the main areas of economic activity of business entities that are exempt from VAT are established: transactions on supply of rehabilitation equipment and vehicles for persons with disabilities, food supply transactions, provision of property, communal services, etc. in rehabilitation institutions at the expense of state funds, provision of charitable assistance by charitable organization, supply of agricultural products by agricultural producers to labor and war veterans, rehabilitated citizens, disabled persons and others. The directions of improvement of the tax system in the part of VAT are suggested by introducing a number of privileges, such as: allowing to include in the tax credit on VAT amounts paid by business entities to suppliers when purchasing services, which will later be transferred in the form of charitable assistance to ATO (JFO) participants; not to include VAT in the price of goods, works, services purchased by participants ATO (JFO) or members of the families of deceased ATO (JFO) participants.

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