Value added tax (VAT): the impact on the chain producer - processor - trader - consumer - state budget

Toma, Mircea (2013): Value added tax (VAT): the impact on the chain producer - processor - trader - consumer - state budget. Published in: AGRARIAN ECONOMY AND RURAL DEVELOPMENT - REALITIES AND PERSPECTIVES FOR ROMANIA , Vol. 4, No. ISSN – 2285-6803; ISSN – L – 2285-6803 (21 November 2013): pp. 14-21.

Abstract

Counteracting the crisis, theoretically but also practically cannot ignore the direct and consequential effects (collateral) of taxes and contributions due to the state budget and distribution of profits, on the chain: Financial Institutions ⇒ Suppliers of inputs ⇒ Agricultural producers ⇒ Wholesalers ⇒ Processing industry ⇒ En – detail traders ⇒ Consumer ⇒ State budget. Solutions require transparency, solidarity, equity, social justice in the distribution of efforts and usufruct (profit) on all chain participants to achieve useful goods and services useful for the human society. An orderly adjustment of tax and contribution system may lead to the adoption of those measures to stimulate domestic consumption, domestic output growth and rotation speed of capital, reducing the budget deficit, uncontrolled growth of prices, inflation and unemployment, in a word of imbalances in economic life. To assess the impact of VAT on the chain was started from two hypotheses : rethinking the VAT quota level on the chain and determine and regularization of the VAT, by entitling the right to the users of agricultural production to deduct VAT from the price paid to individual producers (associated )namely calculating VAT from 100 price paid.The results are concretized in: increasing revenues (about 2.4 billion / year), reducing the public institutions spending on goods and services bearing VAT by 20% (about 200 million Euro/ year), reduction of VAT refunds from the budget, reducing the gap between theoretical and potential VAT collected from 42% (49.5%) to 24%, by increasing the collection from 58% (50.5 %) to 76 %, concentration collecting VAT chargeable (76,22 %) from merchants and diminishing the amount of payment by the economic operators on channel.

• Item Type: MPRA Paper
• Language: English
• Keywords: VAT, chain, VAT quota, tax evasion, state budget
• Subjects: Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q14 - Agricultural Finance; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q18 - Agricultural Policy ; Food Policy

References

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*** Directiva 112, Directiva 2006/112 a Consiliului Uniunii Europene din 28 noiembrie 2006 privind sistemul comun al TVA, publicată în Jurnalul Oficial al Comunțiitlăor Europene (JOCE), Legea 347/11 decembrie 2006, cu modificările și completările ulterioare.

***Codul fiscal – Legea nr. 571/2003 (publicată în M.O. Nr. 927/28 decembrie 2003), cu modificările și completările ulterioare – TITLUL VI.

***Codul de procedură fiscală – OG. Nr. 92/2003 (republicat în M.O. Nr. 513/31 iulie 2007), cu modificările și completările ulterioare;

***Hotărârea Guvernului nr. 44/2004 pentru aprobarea normelor metodologice de aplicare a Legii nr. 57/2003 privind Codul fiscal, publicată în M.O. Nr. 112/6 februarie 2004, cu modificărilșei completările ulterioare.